Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698753819011.pdf (New Zealand)
Section MF 7(2C): inserted, on 24 May 2011, by section 6(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section MF 7(4) heading: amended, on 1 April 2008, by section 489(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section MF 7(4): amended, on 1 April 2008, by section 489(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section MF 7 list of deﬁned terms family support: repealed, on 1 April 2008, by section 489(6)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

2183 Income Tax Act 2007 Reprinted as at 29 May 2012 Section MF 7 list of deﬁned terms in-work payment: repealed, on 1 April 2008, by section 489(6)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section MF 7 list of deﬁned terms in-work tax credit: inserted, on 1 April 2008, by section 489(6)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section MF 7 list of deﬁned terms minimum family tax credit: inserted, on 1 April 2008, by section 489(6)(a) of the Taxation (Business Taxation and Re- medial Matters) Act 2007 (2007 No 109).
Subpart MK—Tax credits for KiwiSaver schemes and complying superannuation funds Contents 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providers MK 7 Amounts paid in excess MK 8 Treatment of tax credits on permanent emigration Tax credits for employers [Repealed] MK 9 Eligibility requirements [Repealed] MK 10 Amount of credit [Repealed] MK 11 When tax credits arise [Repealed] MK 12 Using tax credits [Repealed] MK 13 When short payment and unpaid compulsory employer contributions found after tax credit used [Repealed] MK 14 Employees opting out [Repealed] MK 15 Groups of persons MK 16 Private domestic workers Page 2185 2186 2187 2188 2190 2190 2190 2191 2191 2192 2192 2192 2192 2192 2192 2193 2184 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MK 1 MK 1 Tax credits for superannuation contributions Tax credits for members paid to fund providers (1) A fund provider of a person’s KiwiSaver scheme or a comply- ing superannuation fund has a tax credit equal to an amount calculated under section MK 4 for a member credit contribu- tion to the scheme or fund.
Section MK 2 imposes some eligi- bility requirements for the year described in subsection (3) in relation to the person.

Tax credits for employers [Repealed] [Repealed] (2) Calculations: fund providers (3) A tax credit referred to in subsection (1) is calculated for a year that begins on 1 July and ends on 30 June.
(4) Calculations: employers [Repealed] [Repealed] Deﬁned in this Act: amount, complying superannuation fund, employee, employer, employer contribution, fund provider, KiwiSaver scheme, member credit contribution, pay, tax credit, tax year Compare: 2004 No 35 ss KJ 1, KJ 6, OB 1 “member credit year” Section MK 1: substituted, on 1 April 2008, by section 125 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section MK 1(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 366 of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section MK 1(2) heading: repealed, on 1 April 2009, pursuant to section 53 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section MK 1(2): repealed, on 1 April 2009, by section 53 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section MK 1(4) heading: repealed, on 1 April 2009, pursuant to section 53 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section MK 1(4): repealed, on 1 April 2009, by section 53 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Tax credits for fund providers Heading: inserted, on 1 April 2008, by section 126 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
2185 Part M s MK 2 Income Tax Act 2007 Reprinted as at 29 May 2012 MK 2 Eligibility requirements Requirements for person For the purposes of section MK 1(1), the requirements for the person for the year described in section MK 1(3) are the fol- lowing: (a) (b) they must be 18 years or older; and they must have a creditable membership of a complying superannuation fund or a KiwiSaver scheme; and they must not be entitled under schedule 1, clause 4(3) of the KiwiSaver Act 2006 or an equivalent provision to withdraw an amount from the scheme or fund; and they must reside mainly in New Zealand, or otherwise they must— (i) be an employee of the State services under the State Sector Act 1988 serving outside New Zealand; or (c) (d) (ii) work overseas as a volunteer or for token pay- ment for a charitable organisation named in regu- lations made under the Student Loan Scheme Act 2011 and the work meets 1 or more of the require- ments in clause 2(1) of Schedule 1 of that Act.
Evidence For the purposes of subsection (1)(d)(i) and (ii), the person must give the fund provider written evidence that they meet the requirements, and of the period in which they meet the requirements.
Deﬁned in this Act: amount, complying superannuation fund, creditable mem- bership, employee, KiwiSaver scheme, New Zealand, resident in New Zealand, tax credit Compare: 2004 No 35 s KJ 2 Section MK 2(1) heading: substituted, on 1 April 2008, by section 127(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 2(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 367 of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section MK 2(1): amended, on 1 April 2008, by section 127(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 2(1)(b): substituted, on 1 April 2008, by section 127(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 2(1)(d)(ii): replaced, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
(1) (2) 2186 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MK 3 Section MK 2 list of deﬁned terms creditable membership: inserted, on 1 April 2008, by section 127(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

MK 3 Payment of tax credits (1) (2) (3) (4) When this section applies This section applies when a member credit contribution is made to a KiwiSaver scheme or a complying superannuation fund.
Payment The Commissioner must pay a tax credit to the trustees of the scheme or fund (the fund provider) to which the person has contributed.

The amount of the tax credit is calculated under section MK 4.

Subsection (5) overrides this subsection.

Full amount paid The Commissioner must pay the full amount of the tax credit by direct credit to the fund provider without subtracting any amount that the person or fund provider may be obliged to pay to the Commissioner.
Subsection (5) overrides this subsection.

Payment The Commissioner must pay the amount of the tax credit to the fund provider within 30 working days of the provider ﬁling a claim form under section 68C(3) or (4) of the Tax Administra- tion Act 1994.
Exception: payment to person or another provider (5) Despite subsections (2) and (3), the Commissioner may pay the amount of the tax credit as follows: (a) to the person, if it would be impossible or impractical to pay it to the person’s fund provider because either the person has no fund provider, or because the person has died or has suffered a serious illness as deﬁned in schedule 1, clause 12(3) of the KiwiSaver Act 2006; or to a fund provider (provider B) other than the fund provider referred to in subsections (2) and (3), if the per- son is transferring or has transferred to provider B. Deﬁned in this Act: amount, Commissioner, complying superannuation fund, employer contribution, employer’s superannuation contribution, fund provider, KiwiSaver scheme, member credit contribution, pay, tax credit, trustee Compare: 2004 No 35 ss KJ 1, KJ 4, OB 1 “member credit contributions” (b) 2187 Part M s MK 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Section MK 3(1) heading: substituted, on 1 April 2008, by section 128(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section MK 3(1): substituted, on 1 April 2008, by section 128(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3(2): amended, on 1 April 2008, by section 128(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3(3): amended, on 1 April 2008, by section 128(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3(4) heading: substituted, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section MK 3(4): substituted, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3(5) heading: added, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3(5): added, on 1 April 2008, by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3(5)(b): amended, on 29 August 2011, by section 111 of the Tax- ation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section MK 3 list of deﬁned terms employer contribution: inserted, on 1 April 2008, by section 128(5)(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3 list of deﬁned terms member credit contribution: inserted, on 1 April 2008, by section 128(5)(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Section MK 3 list of deﬁned terms superannuation contribution: repealed, on 1 April 2008, by section 128(5)(b) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
MK 4 Amount of tax credit (1) (2) What this section does This section sets out how to calculate the amount of a tax credit paid to a fund provider under section MK 3(2) for a year de- scribed in section MK 1(3).

Amount of credit for year The amount of the tax credit is an amount equal to half of a person’s total member credit contributions for the year for all of their complying superannuation funds and KiwiSaver schemes up to a maximum amount of $521.43.
Part-year equivalents: amount of tax credit (3) Despite subsection (2), if the person meets the requirements of section MK 2 for only part of the year, the amount of the tax credit is,— 2188 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MK 4 (4) (5) (6) (a) (b) equal to half of their total member credit contributions for the year, if that amount is equal to or less than the part-year maximum amount calculated under subsec- tion (4); or equal to the part-year maximum amount calculated under subsection (4), if half of their total member credit contributions for the year is greater than the part-year maximum amount calculated under subsection (4).
Part-year equivalents: maximum amount The part-year maximum amount referred to in subsection (3) is calculated using the formula— $521.43 × days 365.

Deﬁnition of item in formula In the formula, days is the number of days in the year in which the person meets the requirements of section MK 2.
Parts of years In subsection (3), a part of the year may include 1 or more periods of the year in which the person meets the relevant re- quirements and, if there are several periods, for the purposes of the item days in the formula, the days in those periods are added together.
Deﬁned in this Act: amount, employee, employer contribution, ﬁrst payment period, fund provider, member credit contribution, salary or wages, second pay- ment period, tax credit Compare: 2004 No 35 ss KJ 3, OB 1 “member credit year” Section MK 4: substituted, on 1 April 2008, by section 129 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section MK 4(2): amended, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(1)(a) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section MK 4(2): amended, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(1)(b) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section MK 4(3)(a): substituted, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section MK 4(3)(b): substituted, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
2189 Part M s MK 5 Income Tax Act 2007 Reprinted as at 29 May 2012 Section MK 4(4) formula: amended, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
MK 5 Crown contributions for members A tax credit paid to a person’s fund provider under section MK 3 is treated as a Crown contribution for the person, and the KiwiSaver scheme rules and complying fund rules, as ap- plicable, apply to the amount.
Deﬁned in this Act: amount, complying fund rules, fund provider, KiwiSaver scheme, pay, tax credit Compare: 2004 No 35 s KJ 5(2) MK 6 Credit given by fund providers A fund provider who receives a tax credit under section MK 3 must credit the relevant person with the amount which must vest in the person immediately after it is paid to the fund provider.
The provider must use the contribution allocation for a member to credit the amount of the tax credit on a pro rata basis across the investment products to which the person has subscribed or been allocated as a member of a KiwiSaver scheme or complying superannuation fund.
Deﬁned in this Act: amount, complying superannuation fund, fund provider, KiwiSaver scheme, pay, tax credit Compare: 2004 No 35 s KJ 5(3), (4) Section MK 6: amended, on 1 April 2008, by section 130 of the Taxation (Kiwi- Saver) Act 2007 (2007 No 110).

MK 7 Amounts paid in excess Despite section MK 6, a fund provider is treated as having the amount of a tax credit paid under section MK 3 for the pur- poses of recovering any amount paid in excess of that properly payable.
For the purposes of this section, the fund provider may subtract an amount from a person’s account to pay the Commissioner the excess amount.
Deﬁned in this Act: amount, Commissioner, fund provider, pay, tax credit Compare: 2004 No 35 s KJ 5(1), (5) 2190 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MK 9 MK 8 Treatment of tax credits on permanent emigration (1) (2) (3) When this section applies This section applies in the case of a permanent emigration from New Zealand when a person for whom a tax credit has been paid asks their fund provider after their emigration to withdraw or transfer from their KiwiSaver scheme or comply- ing superannuation fund under schedule 1, clause 14 of the KiwiSaver Act 2006 or an equivalent provision.
Payment to Commissioner The fund provider must pay to the Commissioner as soon as practicable the lesser of— (a) the amount of the tax credit paid for the person and held by the provider: the amount of member’s accumulation, as deﬁned in the KiwiSaver Act 2006 for the person for a KiwiSaver scheme: the amount of employee’s superannuation accumulation for the person for a complying superannuation fund.
(b) (c) Recovery If the fund provider does not pay the amount under subsection (2) as soon as practicable, they are treated as having an amount of tax credit paid in excess of that properly payable.
Deﬁned in this Act: amount, Commissioner, complying superannuation fund, employee’s superannuation accumulation, fund provider, KiwiSaver scheme, New Zealand, pay, tax credit Compare: 2004 No 35 ss KJ 3, OB 1 “member credit year” Section MK 8(2)(a): amended, on 1 April 2008, by section 131 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).

Tax credits for employers [Repealed] Heading: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
MK 9 Eligibility requirements [Repealed] Section MK 9: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

2191 Part M s MK 10 Income Tax Act 2007 Reprinted as at 29 May 2012 MK 10 Amount of credit [Repealed] Section MK 10: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
MK 11 When tax credits arise [Repealed] Section MK 11: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

MK 12 Using tax credits [Repealed] Section MK 12: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
MK 13 When short payment and unpaid compulsory employer contributions found after tax credit used [Repealed] Section MK 13: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

MK 14 Employees opting out [Repealed] Section MK 14: repealed, on 1 April 2009, by section 54 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
MK 15 Groups of persons (b) (c) For the purposes of this subpart, a group of persons described in 1 of the following paragraphs is treated as 1 employer: (a) 2 or more companies, if the companies are a group of companies; and all partners in a partnership; and all persons in whom property has become vested, or to whom the control of property has passed in the case of an estate of a deceased person, or a trust, or a com- pany in liquidation, or an assigned estate, or other case in which property is vested or controlled in a ﬁduciary capacity.
Deﬁned in this Act: company, employer, group of companies, group of persons Compare: 2004 No 35 s KJ 12 2192 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s ML 1 Section MK 15: added, on 1 April 2008, by section 132 of the Taxation (Kiwi- Saver) Act 2007 (2007 No 110).
MK 16 Private domestic workers For the purposes of this subpart, a private domestic worker who is an employer under paragraph (c) of the deﬁnition of employer in section 4 of the KiwiSaver Act 2006 is treated as paying salary or wages to themselves in the capacity of em- ployee.

Deﬁned in this Act: employee, private domestic worker, salary or wages Compare: 2004 No 35 s KJ 6(4) Section MK 16: added, on 1 April 2008, by section 132 of the Taxation (Kiwi- Saver) Act 2007 (2007 No 110).
Subpart ML—Tax credits for redundancy payments Subpart ML: inserted, on 1 April 2008, by section 490 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 110).

Contents ML 1 What this subpart does ML 2 Tax credit for redundancy payments ML 3 Payment by Commissioner Page 2193 2194 2195 ML 1 What this subpart does (1) Redundancy payments This subpart provides a tax credit for a person who derives a redundancy payment before 1 October 2011 for loss of em- ployment.
Exclusions (2) Despite subsection (1), no tax credit arises for a redundancy payment— (a) related to— (i) (ii) retirement from employment: loss of seasonal employment arising from the normal seasonal work cycle: 2193 Part M s ML 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) (iv) a contract of employment for a ﬁxed term or for the duration of a project: employment for a period following notice of ter- mination of employment: (b) paid— (i) (ii) (iii) to a director of a company by the company or a person associated with the company: to a person by a person associated with them: by a person to an employee who has been paid a redundancy payment by a person associated with the person.
Deﬁned in this Act: 1988 version provisions, associated person, company, dir- ector, employee, employment, pay, tax credit Compare: 2004 No 35 s KC 6(1), (3) Section ML 1: inserted, on 1 April 2008, by section 490 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 110).

Section ML 1(1): amended (with effect on 1 April 2011), on 24 May 2011, by section 8 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).
Section ML 1(1): amended, on 1 October 2010, by section 10 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section ML 1(2)(b)(i): substituted (with effect on 1 April 2008), on 6 October 2009, by section 369 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section ML 1(2)(b)(ii): substituted (with effect on 1 April 2008), on 6 October 2009, by section 369 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section ML 1(2)(b)(iii): substituted (with effect on 1 April 2008), on 6 October 2009, by section 369 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
ML 2 Tax credit for redundancy payments Tax credit (1) A person who derives a redundancy payment before 1 October 2011 has a tax credit of an amount equal to 6 cents for every complete dollar of total redundancy payments derived by them before 1 October 2011.

It does not matter whether— (a) a redundancy payment is paid in a lump sum or by in- stalment: the total redundancy payments relate to 1 or more occa- sions of redundancy of the person.
(b) 2194 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MZ 1 Maximum amount (2) Despite subsection (1), the maximum credit that the person has for each occasion of redundancy is $3,600.

Deﬁned in this Act: amount, redundancy payment, tax credit Section ML 2: substituted (with effect on 1 April 2008), on 6 October 2009, by section 370 of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section ML 2(1): amended (with effect on 1 April 2011), on 24 May 2011, by section 9 of the Taxation (Canterbury Earthquake Measures) Act 2011 (2011 No 24).

Section ML 2(1): amended (with effect on 1 October 2010), on 21 December 2010, by section 116 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section ML 2(1): amended, on 1 October 2010, by section 11 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
ML 3 Payment by Commissioner The person referred to in section ML 2 must apply under sec- tion 41B of the Tax Administration Act 1994 to the Commis- sioner for payment of the tax credit.

Deﬁned in this Act: Commissioner, pay, tax credit Compare: 2004 No 35 s KC 6(2) Section ML 3: inserted, on 1 April 2008, by section 490 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 110).
Subpart MZ—Terminating provisions Contents MZ 1 Entitlement to child tax credit MZ 2 Calculation of child tax credit MZ 3 Exclusions from determination of family scheme income Page 2195 2196 2197 MZ 1 Entitlement to child tax credit (1) When this section applies This section applies when— (a) a person is claiming or receiving a child tax credit for a child for an entitlement period ending on 31 March 2006; and 2195 Part M s MZ 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (b) the person is not entitled to an in-work tax credit under section MD 4 (Entitlement to in-work tax credit).
Entitlement If the person maintains continuously their entitlement after 31 March 2006, they remain entitled to receive the child tax credit for entitlement periods after that date.

When another person entitled to credit If 2 persons are entitled to an in-work tax credit or a child tax credit for a child for an entitlement period, the amount to which each is entitled is not affected by the entitlement of the other person.
Deﬁned in this Act: amount, child, child tax credit, entitlement period, in-work tax credit Compare: 2004 No 35 ss KD 2AA(3A), KD 2AAAB Section MZ 1(1)(b): amended, on 1 April 2008, by section 491(1) of the Taxa- tion (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section MZ 1(3): amended, on 1 April 2008, by section 491(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section MZ 1 list of deﬁned terms in-work payment: repealed, on 1 April 2008, by section 491(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section MZ 1 list of deﬁned terms in-work tax credit: inserted, on 1 April 2008, by section 491(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
MZ 2 Calculation of child tax credit Entitlement (1) A person who meets the requirements of section MZ 1 is en- titled to a child tax credit calculated using the formula in sub- section (2).

Formula The formula is— (2) $780 × dependent children × days in entitlement period 365.
Deﬁnition of items in formula In the formula,— (a) dependent children is the number of dependent chil- dren for whom the person is a principal caregiver during the entitlement period: (3) 2196 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MZ 3 (b) days in entitlement period is the number of days in the entitlement period for which the person and their spouse, civil union partner, or de facto partner do not receive a social assistance payment and do not have a suspended entitlement to an income-tested beneﬁt.
Deﬁned in this Act: amount, child tax credit, civil union partner, de facto part- ner, dependent child, entitlement period, income-tested beneﬁt, principal care- giver, social assistance payment, spouse Compare: 2004 No 35 s KD 2(4) MZ 3 Exclusions from determination of family scheme income (1) When this section applies This section applies for the purposes of determining under sec- tion MB 1 (Adjustments for calculation of family scheme in- come) the entitlement and tax credit of a person under the fam- ily scheme.
Refunds of main deposit (2) An amount of main deposit made in relation to the 2002–03 or earlier income year that is refunded to the person in the 2003–04 or later income year under any of sections EH 10, EH 13, EH 15, EH 17, and EH 23 (which relate to income equalisation accounts) is not included in family scheme in- come.
Refunds of adverse event deposit (3) An amount of adverse event deposit made under section EH 39 (Adverse event income equalisation account) in relation to the 2002–03 or earlier income year that is refunded to the person in the 2003–04 or later income year under any of sections EH 45, EH 47, and EH 53 (which relate to refunds on application) is not included in family scheme income.
(4) Treatment of interest The amount of a refund under subsections (2) and (3) does not include an amount of interest payable under section EH 6 or EH 40 (which relate to interest on deposits), as applicable.
Deﬁned in this Act: adverse event deposit, amount, family scheme, family scheme income, income year, interest, main deposit, tax credit Compare: 2004 No 35 s KD 1(1)(e)(i), (vi) 2197 Part M s MZ 3 Income Tax Act 2007 Reprinted as at 29 May 2012 Section MZ 3: added (with effect on 1 April 2008), on 6 October 2009, by section 371(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
2198 Reprinted as at 29 May 2012 Income Tax Act 2007 Part M s MZ 3 Part O Memorandum accounts Subpart OA—General provisions Contents 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 OA 7 Opening balances of memorandum accounts Opening balances Page 2200 2200 2201 2202 2202 2204 2206 Shareholder continuity requirements OA 8 Shareholder continuity requirements for memorandum 2208 accounts Treatment of credits and debits on resident’s restricted amalgamation General provision OA 9 General treatment of credits and debits on resident’s 2211 restricted amalgamation OA 10 When credits or debits due to amalgamating company but 2212 When companies amalgamate 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 2213 2214 2214 amalgamation Amalgamation of companies in consolidated groups OA 14 Continuity of shareholding when group companies 2215 amalgamate OA 15 When credits or debits due to consolidated group but not 2216 recorded 2199 Part O s OA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 OA 16 When FDP account ends on resident’s restricted amalgamation OA 17 When policyholder credit account ends on resident’s restricted amalgamation OA 18 Calculation of maximum permitted ratios Maximum permitted ratios 2218 2218 2219 Introductory provisions OA 1 What this Part does This Part provides some rules of general application for recording amounts as credits and debits to a memorandum account.
Deﬁned in this Act: memorandum account OA 2 Memorandum accounts (1) Types of account in this Part The following accounts are dealt with in this Part: (a) (b) an imputation credit account, see subparts OB and OP: a foreign dividend payment (FDP) account, see subparts OC and OP: [Repealed] a branch equivalent tax account, see subparts OE and OP: an available subscribed capital (ASC) account, see sub- part OF: [Repealed] a Maori authority credit account, see subpart OK. (c) (d) (e) (f) (g) Role of accounts (2) A memorandum account is an account listed in subsection (1) that provides a record of the credits and debits arising in the account.
Tax year (3) A memorandum account is maintained for a tax year unless a provision in this Part expressly states otherwise.

2200 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 3 (4) (5) Tables The credits and debits that arise in a memorandum account are listed in tables in each of the subparts.
The tables— (a) (b) (c) state the credits and the debits; and provide the credit dates and the debit dates; and refer to the section that fully deﬁnes the credits and debits, and their credit dates and debit dates.

Determination The Commissioner may issue a determination under section 104B of the Tax Administration Act 1994 adjusting the amount of a credit or debit, or a credit date or debit date recorded in a memorandum account if the Commissioner considers the amount or date is not correct.
The determination may be re- viewed in challenge proceedings under Part 8A of that Act.
Deﬁned in this Act: ASC account, branch equivalent tax account, Commis- sioner, CTR account, FDP account, imputation credit account, Maori authority credit account, memorandum account, policyholder credit account, tax year Compare: 2004 No 35 ss ME 1(1), ME 3(1), ME 10(1), (1A)–(1C), ME 15, ME 17(1), ME 20, ME 21(1), ME 22(1), ME 25, ME 26(2), ME 40, MF 1(1), MF 3(1), MF 6, MF 7(1), MF 11(1), MF 12(1), MG 2(1), MG 3(1), MG 12, MG 13(1), MG 14(1), MG 15(1), MI 2(1), (4), MI 3(1), MI 14, MI 17(1), MI 18(1), MJ 1(1), MJ 3(1), MJ 8, MK 1(1), MK 3(1), MK 9 Section OA 2(1)(c): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 81(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 2(1)(f): repealed, on 1 July 2010, by section 372(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OA 3 General rules for maintaining memorandum accounts (1) What this section does This section sets out the rules that apply in relation to a memo- randum account to a person who— (a) (b) may choose to maintain an account.
is required to maintain a memorandum account; or Record (2) A person who maintains a memorandum account must record all credits and all debits that arise in the account as at their credit date or debit date.

The credits and debits are listed in 2201 Part O s OA 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) provisions in the relevant subpart for each type of memoran- dum account.
Credit balances The credit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of credits over debits.

Debit balances The debit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of debits over credits.
Deﬁned in this Act: amount, income year, memorandum account, tax year Compare: 2004 No 35 ss ME 2, ME 3(1), ME 16, ME 17(1), ME 22(1), ME 26, MF 2, MF 3(1), MF 8, MF 12(1), MG 1, MG 3(1), MG 14(1), MG 15(1), MI 1, MI 3(1), MI 17(1), MI 18(1), MJ 2, MJ 3(1), MK 2, MK 3(1) OA 4 Certain credits and debits arising only in group accounts Certain credits or debits of a consolidated group may arise only in the memorandum account of the consolidated group and not in the memorandum account of a group company.
Memoran- dum accounts of consolidated groups are dealt with in subpart OP (Memorandum accounts of consolidated groups).

Deﬁned in this Act: company, consolidated group, memorandum account Compare: 2004 No 35 ss ME 13, ME 28(4), MF 9, MF 11(3), MG 16, MI 19 OA 5 Credits Credits and debits (1) What this section does This section deﬁnes the credits that arise under this Part in a memorandum account.
Imputation credits (2) A credit is an imputation credit if it is an amount— (a) (b) (c) set out in any of sections OA 7, OB 4 to OB 29, and OP 7 to OP 27: described in a row of table O1: imputation credits or table O19: imputation credits of consolidated imput- ation groups: credited under section OZ 18 (Credit-back of PCA bal- ance).
2202 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 5 FDP credits (3) A credit is an FDP credit if it is an amount— (a) (b) set out in any of sections OA 7, OC 6 to OC 12, and OP 56 to OP 63: described in a row of table O3: FDP credits or table O21: FDP credits of consolidated FDP groups.
CTR credits [Repealed] [Repealed] (4) Branch equivalent tax credits (a) (ii) (5) A credit is a branch equivalent tax credit if it is an amount,— for a branch equivalent tax account (BETA) company,— set out in any of sections OA 7 and OE 6 to (i) OE 11: described in a row of table O7: branch equivalent tax credits: for a BETA person,— (i) (ii) set out in section OA 7 or OE 19: described in a row of table O9: person’s branch equivalent tax credits: for a consolidated BETA group,— (i) (b) (c) set out in any of sections OA 7 and OP 100 to OP 104: described in a row of table O25: branch equiva- lent tax credits of consolidated BETA groups.
(ii) ASC credits (6) A credit is an ASC credit if it is an amount— (a) (b) set out in section OA 7 or OF 4: described in a row of table O11: ASC credits.

Policyholder credits [Repealed] [Repealed] (7) Maori authority credits (8) A credit is a Maori authority credit if it is an amount— set out in any of sections OA 7 and OK 2 to OK 9: (a) (b) described in a row of table O17: Maori authority credits.
Deﬁned in this Act: amount, ASC credit, BETA company, BETA person, branch equivalent tax credit, consolidated BETA group, consolidated FDP group, con- 2203 Part O s OA 6 Income Tax Act 2007 Reprinted as at 29 May 2012 solidated group, consolidated imputation group, FDP credit, imputation credit, Maori authority credit, memorandum account, PCA company, PCA person Section OA 5(2)(b): amended, on 1 July 2010, by section 373(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 5(2)(c): added, on 1 July 2010, by section 373(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OA 5(4) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 82(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5(4): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 82(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OA 5(7) heading: repealed, on 1 July 2010, pursuant to section 373(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 5(7): repealed, on 1 July 2010, by section 373(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OA 5 list of deﬁned terms CTR credit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 82(3) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 5 list of deﬁned terms policyholder credit: repealed, on 1 July 2010, by section 373(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OA 6 Debits What this section does (1) An ICA company has an imputation credit for an amount rep- resenting an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another per- son to the company.
Imputation debits (2) A debit is an imputation debit if it is an amount— (a) (b) set out in any of sections OA 7, OB 30 to OB 59, OP 28 to OP 50, and OZ 3: described in a row of table O2: table O20: ation groups.
imputation debits or imputation debits of consolidated imput- 2204 Reprinted as at 29 May 2012 FDP debits Income Tax Act 2007 Part O s OA 6 (3) A debit is an FDP debit if it is an amount— (a) (b) set out in any of sections OA 7, OC 13 to OC 26, and OP 64 to OP 77: described in a row of table O4: FDP debits or table O22: FDP debits of consolidated FDP groups.
CTR debits [Repealed] [Repealed] (4) Branch equivalent tax debits (5) A debit is a branch equivalent tax debit if it is an amount,— (a) (b) (c) for a BETA company,— (i) (ii) set out in any of sections OA 7 and OE 12 to OE 16: described in a row of table O8: branch equivalent tax debits: for a BETA person,— (i) set out in any of sections OA 7 and OE 20 to OE 22: described in a row of table O10: person’s branch equivalent tax debits: for a consolidated BETA group,— (i) set out in any of sections OA 7 and OP 105 to OP 108: described in a row of table O26: branch equiva- lent tax debits of consolidated BETA groups.
(ii) (ii) ASC debits (6) A debit is an ASC debit if it is an amount— (a) (b) set out in section OA 7 or OF 5: described in a row of table O12: ASC debits.

Policyholder debits [Repealed] [Repealed] (7) Maori authority debits (8) A debit is a Maori authority debit if it is an amount— (a) set out in any of sections OA 7 and OK 10 to OK 18: 2205 Part O s OA 7 Income Tax Act 2007 Reprinted as at 29 May 2012 described in a row of table O18: Maori authority debits.
(b) Deﬁned in this Act: amount, ASC debit, BETA company, BETA person, branch equivalent tax debit, consolidated BETA group, consolidated FDP group, con- solidated group, consolidated imputation group, FDP debit, imputation debit, Maori authority debit, memorandum account, PCA company, PCA person Section OA 6(4) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 83(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6(4): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 83(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OA 6(7) heading: repealed, on 1 July 2010, pursuant to section 374(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 6(7): repealed, on 1 July 2010, by section 374(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OA 6 list of deﬁned terms CTR debit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 83(3) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 6 list of deﬁned terms policyholder debit: repealed, on 1 July 2010, by section 374(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OA 7 Opening balances of memorandum accounts Opening balances Balances carried forward The opening balance of a memorandum account at the start of a tax year or income year, as applicable, is the closing balance of the account in the previous tax year or income year, as ap- plicable.
Credit date The credit date or debit date for an opening balance is,— (a) for an imputation credit account, the ﬁrst day of the tax year: for an FDP account, the ﬁrst day of the tax year: [Repealed] for a branch equivalent tax account— (i) of a BETA company, the ﬁrst day of the tax year; or (b) (c) (d) (1) (2) 2206 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 7 (3) (ii) (iii) of a BETA person, the ﬁrst day of the income year; or of a consolidated BETA group, the ﬁrst day of the tax year: for an ASC account, the ﬁrst day of the tax year: [Repealed] for a Maori authority credit account, the ﬁrst day of the tax year.
(e) (f) (g) First year If a consolidated group, company, or person starts a memo- randum account during a tax year, no credit for an opening balance arises in the account.
But this subsection does not apply— (a) when the companies of 2 or more consolidated imput- ation groups choose to combine to form, or to join, an imputation group, for which see section OP 3(2) (Changes in consolidated imputation groups): (b) when the companies that are part of an imputation group choose to convert their status to that of a consolidated group that is a consolidated imputation group, for which see section OP 3(3): to a resident imputation subgroup associated with a trans-Tasman imputation group, for which see section OP 4 (Resident imputation subgroups).
(c) Deﬁned in this Act: ASC account, BETA company, BETA person, branch equivalent tax account, company, consolidated BETA account, consolidated group, consolidated imputation group, FDP account, imputation credit account, imputation group, income year, Maori authority credit account, memorandum account, PCA company, PCA person, resident imputation subgroup, tax year, trans-Tasman imputation group Compare: 2004 No 35 ss ME 3(2), ME 10(1A)–(1C), (2), ME 17(2), ME 22(2), ME 26(1), MF 3(2), MF 8(1), MF 12(2), MG 3(2), MG 13(3), MI 3(2), MI 15, MJ 3(2), MK 3(2) Section OA 7(2)(c): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 84(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 7(2)(d): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OA 7(2)(f): repealed, on 1 July 2010, by section 375(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2207 Part O s OA 8 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OA 7 list of deﬁned terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 84(3) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).

Section OA 7 list of deﬁned terms policyholder credit account: repealed, on 1 July 2010, by section 375(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Shareholder continuity requirements OA 8 Shareholder continuity requirements for memorandum accounts (1) When this section applies This section applies when a company or a consolidated group maintains a memorandum account.
Shareholder continuity requirement (2) An amount that is a credit in the account may be carried for- ward from a credit date to a later time only if the company or consolidated group that has the credit maintains a 66% con- tinuity of shareholding under subsection (7) from the credit date to the later time.

Subsections (3B) to (5) override this subsection.

Continuity (3) A credit is treated as continuing to exist to the extent to which it is not reduced by an earlier or later debit arising in the account.
Exclusions: qualifying companies (3B) Subsection (2) does not apply to a qualifying company.

But, if section HA 11(1) (When requirements no longer met) applies to the company,— (a) an adjustment must be made under section HA 18 (Treatment of dividends when qualifying company status ends) to the company’s imputation credit account and FDP account, as applicable; and the shareholder continuity requirements apply to the company from the day on which the status as a quali- fying company ends.
(b) Exclusion: ASC accounts Subsection (2) does not apply to a person who maintains an ASC account.
Modiﬁcation: CTR accounts (4) 2208 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 8 (5) (6) (7) (8) [Repealed] [Repealed] When continuity lost For a memorandum account and for a company or consolidated group that maintains the account when the continuity of share- holding required by subsection (7) is lost, a debit arises under the relevant section in each subpart only to the extent to which an unused amount of credit remains in the memorandum ac- count.
The relevant sections are— (a) section OB 41 (ICA debit for loss of shareholder con- tinuity): section OC 24 (FDPA debit for loss of shareholder con- tinuity): section OE 15 (BETA debit for loss of shareholder con- tinuity): section OK 15 (MACA debit for loss of shareholder continuity): section OP 42 (Consolidated ICA debit for loss of share- holder continuity): section OP 73 (Consolidated FDPA debit for loss of shareholder continuity): section OP 108 (Consolidated BETA debit for loss of shareholder continuity).
(b) (c) (d) (e) (f) (g) Shareholder continuity requirement The shareholder continuity requirement is that, while some or all of the credit still exists, a group of persons must continue to hold— (a) aggregate minimum voting interests in a company or consolidated group of at least 66%; and if a market value circumstance exists for a company or, in the case of a consolidated group, a group company, aggregate minimum market value interests in the com- pany or group of at least 66%.
(b) Modiﬁcations The following rules apply for the purposes of subsection (7): the minimum interest referred to in subsection (7)(a) or (a) (b) of a person must be counted if their interests change after the credit arises; and 2209 Part O s OA 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) a credit retains its separate character and is not treated as part of a credit referred to in section OA 7 in a later tax year; and the amount by which a credit is reduced by an earlier or later debit is found by— (i) treating debits as reducing credits in the order in which credits arise; and counting an amount of a debit only once in the reduction of some or all of a credit; and applying any relevant terminating modiﬁcations set out in section OZ 4 (Terminating modiﬁca- tions to debits for loss of shareholder continuity) for a credit arising before 1 April 1992.
(ii) (iii) Deﬁned in this Act: amount, ASC account, branch equivalent tax account, com- pany, consolidated group, FDP account, group of persons, imputation credit ac- count, Maori authority credit account, market value circumstance, market value interest, memorandum account, minimum market value interest, minimum vot- ing interest, shareholder, tax year, voting interest Compare: 2004 No 35 ss ME 5(3), ME 12(1)(h), ME 13(2), (4), MF 4(5), MF 8(4), MG 15(1), MI 5(3)–(7), MI 18(1)(e), (3), (4), MK 5(3), (4) Section OA 8(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 376(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(3B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 376(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OA 8(3B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 376(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(4) heading: substituted (with effect on 1 April 2008), on 6 Octo- ber 2009, by section 376(3) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section OA 8(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 376(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OA 8(5) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 85(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OA 8(5): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 85(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2210 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 9 Section OA 8 list of deﬁned terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 85(3) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 8 list of deﬁned terms policyholder credit account: repealed (with effect on 1 April 2008), on 6 October 2009, by section 376(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
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 (1) When this section applies This section applies— (a) on a resident’s restricted amalgamation, in relation to an amalgamated company and a memorandum account, if an amalgamating company ends its existence on the amalgamation and, at the time of the amalgamation, the amalgamating company maintains 1 or more memo- randum accounts of the type referred to in sections OA 2(1)(a) to (d), and (f); and for the purposes of determining whether a credit or debit arises in the same type of account of the amalgamated company.
(b) Treatment of pre-amalgamation credits and debits (2) A credit or debit recorded in the memorandum account of the amalgamating company before the date of the amalgamation is treated as if it were recorded in the same type of account of the amalgamated company on the date it was recorded in the amalgamating company’s account with effect from the time of the amalgamation.
(3) Treatment of pre-amalgamation period For the purposes of section OA 8(7)(b) and (8), in determining at a time after the amalgamation whether continuity of share- holding exists for the credit or debit in the memorandum ac- count, the amalgamated company is treated for all times before the amalgamation as if— (a) it did not separately exist; and 2211 Part O s OA 10 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) (b) it were instead the amalgamating company, with the same shareholders and option holders.
Avoidance provisions For the purposes of determining the credits and debits in the memorandum account of an amalgamating company, sections GB 34, GB 40, and GB 41 (which relate to arrangements to defeat the application of certain provisions) apply, modiﬁed as necessary.
Deﬁned in this Act: amalgamated company, amalgamating company, consoli- dated group, memorandum account, resident’s restricted amalgamation, share- holder Compare: 2004 No 35 ss ME 29(1)(a), MF 16(1)(a), MG 17(1)(a), MI 13 When companies amalgamate OA 10 When credits or debits due to amalgamating company but not recorded (1) When this section applies This section applies on a resident’s restricted amalgamation if, at the time of the amalgamation, an amalgamating company maintains— (a) (b) (c) (d) (e) an imputation credit account: an FDP account: [Repealed] a branch equivalent tax account: a policyholder credit account.
Credits and debits due (2) A credit or a debit due to the amalgamating company but not recorded in its memorandum account before the date of amal- gamation is recorded in the same type of memorandum ac- count of the amalgamated company.

Subsections (3) and (4) override this subsection.
Exclusion: shareholder continuity rules Subsection (2) does not apply to— (a) a debit for loss of shareholder continuity in an imput- ation credit account arising under section OB 41 (ICA debit for loss of shareholder continuity) and described in table O2: imputation debits, row 14 (debit for loss of shareholder continuity): (3) 2212 Reprinted as at 29 May 2012 (b) (c) Income Tax Act 2007 Part O s OA 11 [Repealed] a credit or debit in a branch equivalent tax account aris- ing— (i) under section OE 10 (BETA credit for loss of shareholder continuity) and described in table O7: branch equivalent tax credits, row 5 (credit for loss of shareholder continuity); and under section OE 15 (BETA debit for loss of shareholder continuity) and described in table O8: branch equivalent tax debits, row 5 (debit for loss of shareholder continuity).
(ii) (4) Recording in imputation credit account If the amalgamated company does not maintain a memoran- dum account referred to in subsection (1)(b) and (e), the credit or debit is recorded in the imputation credit account of the amalgamated company.

See sections OA 11 to OA 13.
Deﬁned in this Act: amalgamated company, amalgamating company, branch equivalent tax account, FDP account, imputation credit, imputation credit ac- count, imputation debit, memorandum account, policyholder credit account, resident’s restricted amalgamation Compare: 2004 No 35 ss ME 29(1), MF 16(1), MG 17(1), MI 13 Section OA 10(1)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 87(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10(3)(b): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 87(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OA 10(4): amended (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 87(5) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 10 list of deﬁned terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 87(6) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OA 11 FDP account on resident’s restricted amalgamation (1) When this section applies This section applies on a resident’s restricted amalgamation if— 2213 Part O s OA 12 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) an amalgamating company ends its existence on amal- gamation; and at the time of amalgamation, the company maintains an FDP account; and the amalgamated company does not maintain an FDP account.
Credits and debits due (2) A credit or a debit due to the amalgamating company for the purposes of the FDP account but not recorded before the date of amalgamation is recorded in the imputation credit account of the amalgamated company, as appropriate,— (a) under section OB 24 (ICA credit on resident’s restricted amalgamation) as described in table O1: imputation credits, row 22 (credit on resident’s restricted amalgam- ation); or under section OB 53 (ICA debit on resident’s restricted amalgamation) as described in table O2: imputation debits, row 26 (debit on resident’s restricted amalgam- ation).
(b) Deﬁned in this Act: amalgamated company, amalgamating company, FDP ac- count, imputation credit account, resident’s restricted amalgamation Compare: 2004 No 35 s MG 17(1) OA 12 CTR account on resident’s restricted amalgamation [Repealed] Section OA 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 377(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OA 13 Policyholder credit account on resident’s restricted amalgamation When this section applies This section applies on a resident’s restricted amalgamation if— (a) an amalgamating company ends its existence on amal- gamation; and at the time of amalgamation, the company maintains a policyholder credit account; and (b) (1) 2214 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 14 (c) the amalgamated company does not maintain a policy- holder credit account.
Credits and debits due (2) A credit or a debit due to the amalgamating company for the purposes of the policyholder credit account but not recorded in the account before the date of amalgamation, is recorded in the imputation credit account of the amalgamated company, as appropriate,— (a) under section OB 24 (ICA credit on resident’s restricted amalgamation) as described in table O1: imputation credits, row 22 (credit on resident’s restricted amalgam- ation); or under section OB 53 (ICA debit on resident’s restricted amalgamation) as described in table O2: imputation debits, row 26 (debit on resident’s restricted amalgam- ation).
(b) Deﬁned in this Act: amalgamated company, amalgamating company, imput- ation credit account, policyholder credit account, resident’s restricted amalgam- ation Compare: 2004 No 35 s ME 29(1) Amalgamation of companies in consolidated groups OA 14 Continuity of shareholding when group companies amalgamate (1) (2) (3) What this section does This section and sections OA 15 to OA 17 apply when all the companies in a consolidated group or consolidated imput- ation group amalgamate on a resident’s restricted amalgam- ation, and the amalgamation results in— (a) (b) the end of the group’s existence; and the formation of an amalgamated company.
Other company The amalgamation may include a company that is not part of the consolidated group or consolidated imputation group.

Continuity of shareholding: credits and debits Subsections (4) and (5) apply for the purposes of determining whether a credit or debit arises in the memorandum account 2215 Part O s OA 15 Income Tax Act 2007 Reprinted as at 29 May 2012 of the amalgamated company that is of the type referred to in section OA 2(1)(a), (b), (d), and (f).
Treatment of pre-amalgamation credits and debits (4) A credit or debit recorded in the memorandum account of the consolidated group before the date of the amalgamation is treated as if it were recorded in the same type of account of the amalgamated company on the date it was recorded in the consolidated group’s account with effect from the date of amalgamation.
(5) (6) Treatment of pre-amalgamation period For the purposes of section OA 8(7)(b) and (8), in determining at a time after the amalgamation whether continuity of share- holding exists for the credit or debit in the memorandum ac- count, the amalgamated company is treated for all times before the amalgamation as if— (a) (b) it did not separately exist; and it were instead the consolidated group, with the same shareholders and option holders.
Avoidance provisions For the purposes of determining the credits and debits in the memorandum account of a consolidated group, sections GB 34, GB 40, and GB 41 (which relate to arrangements to defeat the application of certain provisions) apply, modiﬁed as necessary.
Deﬁned in this Act: amalgamated company, company, consolidated group, con- solidated imputation group, memorandum account, resident’s restricted amal- gamation, shareholder, voting interest Compare: 2004 No 35 ss ME 29(2)(a), MF 16(2)(a), MG 17(2)(a) OA 15 When credits or debits due to consolidated group but not recorded When this section applies This section applies on a resident’s restricted amalgamation referred to in section OA 14 when, at the time of the amal- gamation, a consolidated group maintains— an imputation credit account: (a) an FDP account: (b) a branch equivalent tax account: (c) a policyholder credit account.
(d) (1) 2216 (3) (4) Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 15 Credits and debits due (2) A credit or a debit due to the consolidated group but not recorded in its account before the date of amalgamation is recorded in the same type of memorandum account of the amalgamated company.

Subsections (3) and (4) override this subsection.
Exclusion: shareholder continuity rules Subsection (2) does not apply to— (a) (b) (c) a debit for loss of shareholder continuity in an imput- ation credit account arising under section OP 42 (Con- solidated ICA debit for loss of shareholder continuity) and described in table O20: imputation debits of con- solidated imputation groups, row 16 (debit for loss of shareholder continuity): [Repealed] a credit or debit in a branch equivalent tax account aris- ing— (i) under section OP 104 (Consolidated BETA credit for loss of shareholder continuity) and described in table O25: branch equivalent tax credits of consolidated BETA groups, row 5 (credit for loss of shareholder continuity); and under section OP 108 (Consolidated BETA debit for loss of shareholder continuity) and described in table O26: branch equivalent tax debits of con- solidated BETA groups, row 5 (debit for loss of shareholder continuity).
(ii) Recording in imputation credit account If the amalgamated company does not maintain a memoran- dum account referred to in subsection (1)(b) or (d), the credit or debit is recorded in the imputation credit account of the amal- gamated company.

See sections OA 16 and OA 17.
Deﬁned in this Act: amalgamated company, branch equivalent tax account, con- solidated group, FDP account, imputation credit account, policyholder credit account, resident’s restricted amalgamation, shareholder, voting interest Compare: 2004 No 35 ss ME 29(2)(b), MF 16(2)(b), MG 17(2)(b) Section OA 15(3)(b): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 89(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2217 Part O s OA 16 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OA 15 list of deﬁned terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 89(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OA 16 When FDP account ends on resident’s restricted amalgamation (1) When this section applies This section applies on a resident’s restricted amalgamation referred to in section OA 14 if— (a) a consolidated group ends its existence on amalgam- ation; and at the time of amalgamation, the consolidated group maintains an FDP account; and the amalgamated company does not maintain an FDP account.
(b) (c) Credits and debits due (2) A credit or a debit due to the group but not recorded before the date of amalgamation is recorded in the imputation credit account of the amalgamated company, as appropriate,— (a) under section OB 24 (ICA credit on resident’s restricted amalgamation) as described in table O1: imputation credits, row 22 (credit on resident’s restricted amalgam- ation); or under section OB 53 (ICA debit on resident’s restricted amalgamation) as described in table O2: imputation debits, row 26 (debit on resident’s restricted amalgam- ation).
(b) Deﬁned in this Act: amalgamated company, consolidated group, FDP account, imputation credit account, resident’s restricted amalgamation, shareholder Compare: 2004 No 35 s MF 17(2)(b) OA 17 When policyholder credit account ends on resident’s restricted amalgamation When this section applies This section applies on a resident’s restricted amalgamation referred to in section OA 14 if,— (a) a consolidated group ends its existence on amalgam- ation; and (1) 2218 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 18 (b) (c) at the time of amalgamation, the consolidated group maintains a policyholder credit account; and the amalgamated company does not maintain a policy- holder credit account.
No policyholder credit account (2) A credit or a debit due to the group but not recorded before the date of amalgamation is recorded in the imputation credit account of the amalgamated company, as appropriate,— (a) under section OB 24 (ICA credit on resident’s restricted amalgamation) as described in table O1: imputation credits, row 22 (credit on resident’s restricted amalgam- ation); or under section OB 53 (ICA debit on resident’s restricted amalgamation) as described in table O2: imputation debits, row 26 (debit on resident’s restricted amalgam- ation).
(b) Deﬁned in this Act: amalgamated company, amalgamating company, consoli- dated group, imputation credit account, policyholder credit account, resident’s restricted amalgamation Compare: 2004 No 35 s ME 29(2) Maximum permitted ratios OA 18 Calculation of maximum permitted ratios (1) When this section applies This section applies in relation to an imputation credit, an FDP credit, and a Maori authority credit, for the purposes of the calculation of— (a) (b) (c) (d) (e) (f) an imputation ratio; and an FDP ratio; and a combined imputation and FDP ratio; and [Repealed] [Repealed] a Maori authority credit ratio.
Maximum permitted ratio (2) A dividend or distribution with a credit attached must not have a ratio for the amount of the credit to the amount of the divi- dend or distribution that is more than the maximum permitted ratio calculated using the formula— 2219 Part O s OA 18 Income Tax Act 2007 Reprinted as at 29 May 2012 tax rate tax rate.
1 Deﬁnition of item in formula In the formula, tax rate is— (a) for subsection (1)(a) to (e), the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT and attributed fringe beneﬁts) for the income year in which the dividend is paid: for subsection (1)(f), the basic rate of income tax set out in schedule 1, part A, clause 7 for the income year in which the distribution is paid.
(b) Relationship with sections OZ 8 and OZ 9 Sections OZ 8 and OZ 9 (which relate to the calculation of maximum permitted ratios in certain income years) may apply to modify this section.
Deﬁned in this Act: amount, basic rate, combined imputation and CTR ratio, combined imputation and FDP ratio, dividend, FDP credit, imputation credit, income tax, income year, Maori authority credit ratio, maximum permitted ratio, pay, tax year Compare: 2004 No 35 ss ME 8(1), MG 8(1), MG 10(1), MI 8(1), MK 7(1) Section OA 18(1): amended (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 90(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 18(1)(d): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 90(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OA 18(1)(e): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 90(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OA 18(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 85(1) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).

Section OA 18(4) heading: added, on 1 April 2008, by section 492 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OA 18(4): added, on 1 April 2008, by section 492 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OA 18 list of deﬁned terms CTR credit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 90(3) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).

(3) (4) 2220 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 18 Section OA 18 list of deﬁned terms pay: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).
Subpart OB—Imputation credit accounts (ICA) Contents Introductory provisions OB 1 General rules for companies with imputation credit accounts OB 2 Australian companies with imputation credit accounts OB 3 OB 3B General rule for life insurer’s policyholder base Imputation credit accounts Imputation credits ICA payment of tax ICA deposit in tax pooling account ICA transfer from tax pooling account ICA payment of further income tax OB 4 OB 5 OB 6 OB 7 OB 7B ICA payment of qualifying company election tax OB 7C ICA expenditure on research and development ICA resident withholding tax withheld OB 8 ICA dividend derived with imputation credit OB 9 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 ICA transfer from FDP account OB 13 ICA transfer of debit balance on leaving wholly-owned group OB 14 ICA payment of tax on leaving wholly-owned group OB 15 ICA payment of tax on joining wholly-owned group OB 16 ICA attribution for personal services OB 17 ICA transfer from policyholder credit account [Repealed] OB 18 ICA transfer from ASC account OB 19 ICA transfer to master fund OB 20 ICA distribution with Maori authority credit OB 21 ICA balance of Maori authority credit account OB 22 ICA replacement payment to company under share-lending arrangement OB 23 ICA credit transfer to company Page 2224 2225 2228 2228 2229 2231 2231 2232 2232 2233 2233 2234 2234 2235 2235 2235 2236 2237 2238 2238 2239 2239 2239 2240 2241 2241 2242 2221 Income Tax Act 2007 Reprinted as at 29 May 2012 OB 24 ICA credit on resident’s restricted amalgamation OB 25 ICA reversal of tax advantage arrangement OB 26 ICA elimination of double debit OB 27 ICA non-resident withholding tax withheld OB 28 ICA payment of amount of tax for schedular payment OB 29 ICA payment of schedular income tax Imputation debits OB 30 ICA payment of dividend OB 31 ICA allocation of provisional tax OB 32 ICA refund of income tax OB 33 ICA amount applied to pay other taxes OB 34 ICA refund
 from tax pooling account OB 35 ICA transfer within tax pooling account OB 35B ICA debit for transfer from tax pooling account for policyholder base liability OB 36 ICA refund of FDP OB 37 ICA refund of tax credit OB 38 ICA overpayment of FDP OB 39 ICA transfer for net foreign attributed income [Repealed] OB 40 ICA attribution for personal services OB 41 ICA debit for loss of shareholder continuity OB 42 ICA on-market cancellation OB 43 ICA breach of imputation ratio OB 44 ICA debit on leaving wholly-owned group OB 45 ICA redemption debit OB 46 ICA transfer from member fund OB 47 Debit for policyholder base imputation credits OB 48 ICA credit balance when Maori authority credit account starts OB 49 ICA replacement payment by company under share-lending arrangement OB 50 ICA returning share transfer OB 51 ICA credit transfer by company OB 52 ICA imputation credit of consolidated imputation group OB 53 ICA debit on resident’s restricted amalgamation OB 54 ICA tax advantage arrangement OB 55 ICA retrospective imputation credit OB 56 ICA ﬁnal balance OB 57 ICA refund of NRWT OB 58 ICA refund of amount of tax for schedular payment OB 59 ICA refund of schedular income tax Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OA 18 Imputation credits attached to dividends OB 60 Imputation credits attached to dividends OB 61 ICA benchmark dividend rules OB 62 Retrospective attachment of imputation credits OB 63 Australian dividends OB 64 Replacement payments Further income tax OB 65 Further income tax for ICA closing debit balance OB 66 Further income tax when company stops being ICA company OB 67 Reduction of further income tax OB 68 Income tax paid satisfying liability for further income tax OB 69 Further income tax paid satisfying liability for income tax OB 70 Application of other
 provisions Imputation additional tax OB 71 Imputation additional tax on leaving wholly-owned group OB 72 Imputation additional tax on joining wholly-owned group OB 72B Limit on using entitlement to refund after joining wholly-owned group 2271 2272 2274 2276 2277 2278 2278 2279 2281 2281 2283 2283 2286 2289 Distributions of statutory producer boards and co-operative companies OB 73 Statutory producer boards attaching imputation credits 2292 to cash distributions OB 74 Statutory producer boards attaching imputation credits to 2294 notional distributions OB 75 Statutory producer boards’ notional distributions that are 2296 dividends OB 76 Statutory producer boards attaching FDP credits OB 77 When and how statutory producer board makes election OB 78 Co-operative companies attaching imputation credits to 2297 2298 2298 cash distributions OB 79 Co-operative companies attaching imputation credits to 2300 notional distributions OB 80 Co-operative companies’ notional distributions that are 2301 dividends OB 81 Co-operative companies attaching FDP credits OB 82 When and how co-operative company makes election 2302 2303 2223 Part O s OB 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Introductory provisions OB 1 General rules for companies with imputation credit accounts New Zealand resident (1) A company that is resident in New Zealand (the imputation credit account (ICA) company) must establish and maintain an imputation credit account for a tax year.
Subsection (2) overrides this subsection.
Exclusions (2) A company that is resident in New Zealand is excluded from being an ICA company if it is— a company that— (a) [Repealed] (i) is acting in the capacity of trustee, not being a (ii) company that is a trustee, of a group investment fund to which paragraph (c) of the deﬁnition of company in section YA 1 (Deﬁnitions) applies; or has a constitution that prohibits a distribution to a shareholder; or derives only exempt income other than income exempt under sections CW 9 and CW 10 (which relate to income from equity); or under a double tax agreement, is treated as not being resident in New Zealand; or (iii) (iv) (v) (b) (c) (d) (e) (f) a Maori authority; or a local authority; or a Crown Research Institute; or a subsidiary of the Accident Compensation Corporation affected by section 266 of the Accident Compensation Act 2001, or section 334(1) of the Accident Insurance Act 1998; or a multi-rate PIE.
Exception to subsection (2): Australian resident [Repealed] [Repealed] Deﬁned in this Act: company, Crown Research Institute, double tax agreement, exempt income, group investment fund, ICA company, imputation credit ac- (3) 2224 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 2 count, income, local authority, Maori authority, multi-rate PIE, New Zealand, resident in New Zealand, shareholder, tax, tax year, trustee Compare: 2004 No 35 s ME 1 Section OB 1(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 378(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1(2)(a)(i): repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 1(2)(a)(iv): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 91(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 1(2)(e): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section OB 1(2)(f): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 378(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1(3) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 378(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 1(3): repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1 list of deﬁned terms Australian ICA company: repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 1 list of deﬁned terms multi-rate PIE: inserted, on 1 April 2010, by section 378(6)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 1 list of deﬁned terms portfolio tax rate entity: repealed, on 1 April 2010, by section 378(6)(a) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 1 list of deﬁned terms resident in Australia: repealed (with effect on 1 April 2008), on 6 October 2009, by section 378(5) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 2 Australian companies with imputation credit accounts Company resident in Australia (1) A company that is resident in Australia may choose to establish and maintain an imputation credit account.
2225 Part O s OB 2 Income Tax Act 2007 Reprinted as at 29 May 2012 Ineligibility (2) Despite meeting the residency requirements, a company is not eligible to make an election referred to in subsection (1) if— (a) the company— (i) (ii) is a company referred to in section OB 1(2)(a)(ii) to (iv), and (b) to (f); or is treated as resident in a country other than Aus- tralia under an agreement between Australia and the other country that would be a double tax agreement if negotiated between New Zealand and that other country; or (3) (b) an earlier election has been revoked by the Commis- sioner under subsection (7)(b), and the company has not shown the Commissioner that it has taken adequate steps to prevent the grounds of revocation occurring again.
Election, and when status starts The election is made by notifying the Commissioner, and the company must maintain an imputation credit account from the following date, as applicable: (a) the ﬁrst day of the tax year in which the Commissioner is notiﬁed: for the purposes of section OB 60,— (i) (b) for a company that is formed or becomes eligible in the tax year, the ﬁrst day of the tax year in which the Commissioner receives the notice and the Commissioner notiﬁes the company of that date; or if subparagraph (i) does not apply, 30 days after the date on which the Commissioner receives the notice.
(ii) Joint and several liability (4) A company that is part of the same wholly-owned group of companies as an Australian ICA company may have joint and several liability with the Australian ICA company for further income tax, civil penalties, and interest under Part 7 of the Tax Administration Act 1994 imposed on the Australian ICA company for a breach by the Australian ICA company of the imputation rules.
2226 Reprinted as at 29 May 2012 Exclusion Income Tax Act 2007 Part O s OB 2 (5) Despite subsection (4), no joint and several liability arises if the Australian ICA company is prohibited by an independent regulatory body from being subject to the liability.

Dividend in Australian currency (6) An Australian ICA company that pays a dividend in Aus- tralian currency must make a currency conversion under section OB 60(6).
How status ends (a) (7) A company ends its status as an Australian ICA company if— the company becomes ineligible to maintain an imput- ation credit account; or the company revokes the election by notifying the Com- missioner; or the Commissioner gives the company notice revoking the election.
(b) (c) (8) When status ends For the purposes of subsection (7), the company ends its status as an Australian ICA company— (a) from the day on which the relevant circumstance of in- eligibility in subsection (2) applies; or unless paragraph (c) applies, from the last day of the tax year in which the company or the Commissioner revokes the election; or for the purposes of section OB 60,— (i) when the company notiﬁes the Commissioner, on the date on which the Commissioner receives the notice; or on the date set out in the Commissioner’s notice.
(ii) (b) (c) Outstanding obligations (9) A company that stops being an Australian ICA company for a tax year must nevertheless satisfy all obligations that the com- pany had as an Australian ICA company.
Deﬁned in this Act: Australian ICA company, Commissioner, company, divi- dend, double tax agreement, imputation credit account, imputation rules, in- come, New Zealand, notice, notify, pay, resident in Australia, tax year, wholly- owned group of companies Compare: 2004 No 35 s ME 1A 2227 Part O s OB 3 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OB 2(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 379(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 2(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 379(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 2(2)(a)(i): amended, on 1 April 2008, by section 493(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 2(2)(a)(ii): substituted, on 1 April 2008, by section 493(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 2 list of deﬁned terms resident in New Zealand: repealed (with effect on 1 April 2008), on 6 October 2009, by section 379(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OB 3 Imputation credit accounts (1) General rules The general rules on memorandum accounts set out in sec- tions OA 2 and OA 3 (which relate to the treatment of memo- randum accounts) apply to an imputation credit account of an ICA company.
Consolidated imputation groups (2) Under section OP 2 (When credits and debits arise only in group accounts), certain credits and debits do not arise in an ICA company’s memorandum account if the company is part of a consolidated imputation group.
Deﬁned in this Act: consolidated imputation group, ICA company, imputation credit account, memorandum account Compare: 2004 No 35 s ME 13(1) OB 3B General rule for life insurer’s policyholder base An imputation credit does not arise in relation to a life in- surer’s policyholder base.

Similarly, an imputation debit does not arise in relation to a life insurer’s policyholder base.
Deﬁned in this Act: imputation credit, imputation debit, life insurer, policy- holder base Section OB 3B: inserted, on 1 July 2010, by section 380(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2228 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 4 Imputation credits OB 4 ICA payment of tax Credit (1) An ICA company has an imputation credit for an amount of income tax or provisional tax paid or an amount treated under section RC 32(5)(b) (Wholly-owned groups of companies) as a payment of provisional tax.

Subsection (3) overrides this subsection.

(2) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 2 (payment of tax).
No credit (3) An ICA company does not have an imputation credit for an amount of— (a) (b) (c) (d) (e) (eb) (f) (g) (h) a transfer from a tax pooling account to a tax account with the Commissioner; or income tax paid on income derived when the company is not an ICA company; or income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base in- come; or income tax paid under sections LA 2 and LE 1 (which relate to tax credits for imputation credits and their use) by crediting an imputation credit; or income tax paid under subpart LA and section LF 1 (which relate to tax credits for FDP credits and their use) by crediting a foreign dividend payment (FDP) credit; or income tax paid by a tax credit under subpart LA and section LH 2 (which relate to tax credits for research development and their use); or income tax paid by a tax credit under subpart LP (Tax credits for supplementary dividends); or further income tax applied under section OB 69 to pay income tax or provisional tax; or income tax paid under section OE 7 (BETA payment of income tax) by crediting a branch equivalent tax credit; or 2229 Part O s OB 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) income tax paid as a trustee, unless paid on category A income of the type described in paragraph (c) of the deﬁnition of company in section YA 1 (Deﬁnitions).
(4) Credit date The credit date is— (a) for an amount of income tax or provisional tax paid other than an amount referred to in paragraph (b), the day the tax is paid: for an amount treated under section RC 32(5)(b) as a payment of provisional tax, the day on which notice of the allocation of the tax is given to the Commissioner.

(b) Limitation on credits (5) No amount may give rise to more than 1 imputation credit.
Deﬁned in this Act: amount, branch equivalent tax account, category A income, Commissioner, company, FDP credit, further income tax, ICA company, imput- ation credit, imputation credit account, income, income tax, life insurer, pay, provisional tax, schedular income tax liability, schedular policyholder base in- come, tax account with the Commissioner, tax credit, tax pooling account, tax year, trustee Compare: 2004 No 35 s ME 4(1)(a), (1C), (2)(a) Section OB 4(1): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 112(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 4(3)(c): substituted, on 1 July 2010, by section 381(1) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 4(3)(e): substituted (with effect on 1 April 2008), on 6 October 2009, by section 381(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 4(3)(eb): substituted (with effect on 1 April 2008), on 6 October 2009, by section 381(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 4(4): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 112(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 4 list of deﬁned terms policyholder base income tax liability: re- pealed, on 1 July 2010, by section 381(3)(a) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 4 list of deﬁned terms schedular income tax liability: inserted, on 1 July 2010, by section 381(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 4 list of deﬁned terms schedular policyholder base income: in- serted, on 1 July 2010, by section 381(3)(b) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2230 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 6 OB 5 ICA deposit in tax pooling account Credit (1) An ICA company has an imputation credit for an amount pro- vided by it and paid by an intermediary into a tax pooling ac- count.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 3 (deposit in tax pooling account).

Credit date The credit date is the day the amount is deposited.
Deﬁned in this Act: amount, ICA company, imputation credit, imputation credit account, intermediary, pay, tax pooling account Compare: 2004 No 35 s ME 4(1)(ac), (2)(ac) OB 6 ICA transfer from tax pooling account Credit (1) An ICA company has an imputation credit for an amount rep- resenting an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another per- son to the company.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 4 (transfer from tax pooling ac- count).
Credit date The credit date is,— (a) for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the com- pany’s tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or for an entitlement to funds that are refunded by the inter- mediary from the tax pooling account to the company, the date of the refund; or (b) 2231 Part O s OB 7 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) for an entitlement that is transferred by the intermediary from the company to another person, the date of the transfer.
Deﬁned in this Act: amount, Commissioner, ICA company, imputation credit, intermediary, tax account with the Commissioner, tax pooling account Compare: 2004 No 35 s ME 4(1)(ad), (2)(ad) Section OB 6(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 95(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 6(3): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 95(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

OB 7 ICA payment of further income tax Credit (1) An ICA company has an imputation credit for an amount of further income tax paid under section OB 65 or OB 66.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 5 (payment of further income tax).

Credit date The credit date is the day the further income tax is paid.
Deﬁned in this Act: amount, further income tax, ICA company, imputation credit, pay Compare: 2004 No 35 s ME 4(1)(c), (2)(a) OB 7B ICA payment of qualifying company election tax Credit (1) An ICA company has an imputation credit for an amount of qualifying company election tax paid under section HA 40 (Li- ability for qualifying company election tax).
(2) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 5B (payment of qualifying com- pany election tax).

2232 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 8 (3) Credit date The credit date is the day the qualifying company election tax is paid.
Deﬁned in this Act: amount, ICA company, imputation credit, pay, qualifying company election tax Compare: 2004 No 35 s ME 4(1)(ae), (2)(ae) Section OB 7B: inserted, on 1 April 2008, by section 495 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 7C ICA expenditure on research and development Credit (1) An ICA company has an imputation credit for an amount of a tax credit that the company has under section LH 2 (Tax credits relating to expenditure on research and development).

(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 5C (tax credit for research and development expenditure).
Credit date The credit date is the day the Commissioner is notiﬁed in the company’s return of income of the entitlement to the credit.

Deﬁned in this Act: amount, Commissioner, ICA company, imputation credit, return of income, tax credit Compare: 2004 No 35 s ME 4(1)(ib), (2)(g) Section OB 7C: inserted, on 1 April 2008, by section 495 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 8 ICA resident withholding tax withheld Credit (1) An ICA company has an imputation credit for resident with- holding tax (RWT) that is treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by the company other than as policyholder base income.

(2) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 6 (amount of tax withheld for resident passive income).
2233 Part O s OB 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Credit date The credit date is the day the amount of tax is withheld.

Deﬁned in this Act: amount, amount of tax, ICA company, imputation credit, policyholder base income, resident passive income, resident withholding tax, RWT Compare: 2004 No 35 s ME 4(1)(i), (2)(g) Section OB 8(1): amended, on 1 July 2010, by section 382(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 8 list of deﬁned terms policyholder base income: inserted, on 1 July 2010, by section 382(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OB 9 ICA dividend derived with imputation credit Credit (1) An ICA company has an imputation credit for the amount of an imputation credit attached to a dividend derived by the com- pany.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 7 (dividend derived with imput- ation credit).

Credit date The credit date is the day the dividend is paid to the company.
Deﬁned in this Act: amount, dividend, ICA company, imputation credit, pay Compare: 2004 No 35 s ME 4(1)(d), (2)(c) OB 9B ICA attributed PIE income with imputation credit Credit (1) An ICA company that is an investor in a multi-rate PIE has an imputation credit for the amount of an imputation credit attributed to it under section HM 54 (Use of tax credits other than foreign tax credits by investors).
Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 7B (attributed PIE income with imputation credit).

(2) 2234 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 12 (3) Credit date The credit date is the day the amount is attributed.
Deﬁned in this Act: amount, attributed PIE income, ICA company, imputation credit, multi-rate PIE Section OB 9B: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 384(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 10 ICA dividend derived with FDP credit Credit (1) An ICA company has an imputation credit for the amount of an FDP credit attached to a dividend derived by the company when it is not a foreign dividend payment account (FDPA) company.

(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 8 (dividend derived with FDP credit).

Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, dividend, FDP credit, FDPA company, ICA com- pany, imputation credit, pay Compare: 2004 No 35 s ME 4(1)(e), (2)(c) OB 11 ICA payment of FDP [Repealed] Section OB 11: repealed (with effect on 30 June 2009), on 6 October 2009, by section 385(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 12 ICA transfer from FDP account Credit (1) An ICA company has an imputation credit for an amount equal to the amount of an FDP debit transferred from its FDP ac- count under section OC 18 (FDPA transfer to imputation credit account).

(2) Table references The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 10 (transfer from FDP account).
2235 Part O s OB 13 Income Tax Act 2007 Reprinted as at 29 May 2012 The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 7 (transfer to imputation credit account).

(3) Credit date The credit date is the day the amount is transferred.
Deﬁned in this Act: amount, FDP account, FDP debit, ICA company, imput- ation credit Compare: 2004 No 35 s ME 4(1)(g), (2)(e) OB 13 ICA transfer of debit balance on leaving wholly-owned group Election If the requirements of subsections (2) and (3) are met, an ICA company may choose to transfer a debit balance in its imput- ation credit account when the company stops being part of a wholly-owned group of companies.
Eligibility The company may make an election under subsection (1) if, at a particular time,— (a) the company is or has recently been part of a wholly- owned group of companies; and the company is no longer part of the group, or will shortly no longer be part of the group; and the company has a debit balance in its imputation credit account; and the group has a loss balance carried forward from earlier tax years of more than $1,000,000 for the income year before the particular time.
(b) (c) (d) Credit and debit The company may choose that an amount of no more than the debit balance is— (a) an imputation credit in its imputation credit account; and an imputation debit in the imputation credit account of another company in the group after the date on which the company stops being part of the wholly-owned group.
(b) (1) (2) (3) 2236 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 14 (4) (5) (6) (7) Table references The imputation credit in subsection (3)(a) is referred to in table O1: imputation credits, row 11 (debit balance on leav- ing wholly-owned group).

The imputation debit in subsection imputation debits, row 17 (3)(b) is referred to in table O2: (debit balance on leaving wholly-owned group).
Form and timing of election The company must make the election— (a) in a form that the Commissioner may require; and (b) with a notice of agreement from the group company in whose account the imputation debit arises under sub- section (3)(b); and before the company stops being part of the wholly- owned group.
(c) Further time For the purposes of subsection (5)(b), the Commissioner may allow further time in which to provide the notice if the com- pany did not have sufﬁcient information at the time it stops being part of the wholly-owned group.

Credit date The credit date is the day the company stops being part of the wholly-owned group.
Deﬁned in this Act: amount, Commissioner, company, ICA company, imput- ation credit, imputation credit account, imputation debit, income year, notice, tax loss, wholly-owned group of companies Compare: 2004 No 35 ss ME 4(1)(cb), (2)(bb), ME 9B(1), (2) OB 14 ICA payment of tax on leaving wholly-owned group Credit (1) An ICA company has an imputation credit for a payment of imputation additional tax that it chooses to pay under section OB 71, excluding an excess tax payment applied under section OB 71(8).
(2) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 12 (payment of tax on leaving wholly-owned group).

2237 Part O s OB 15 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Credit date The credit date is the day the imputation additional tax is paid to the Commissioner.
Deﬁned in this Act: amount, Commissioner, excess tax payment, ICA company, imputation additional tax, imputation credit, pay Compare: 2004 No 35 s ME 4(1)(cc), (2)(bc) OB 15 ICA payment of tax on joining wholly-owned group Credit (1) An ICA company has an imputation credit for a payment of imputation additional tax for which it is liable under section OB 72, excluding an excess tax payment applied under section OB 72(9).
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 13 (payment of tax on joining wholly-owned group).

Credit date The credit date is the day the imputation additional tax is paid to the Commissioner.
Deﬁned in this Act: amount, Commissioner, excess tax payment, ICA company, imputation additional tax, imputation credit, pay Compare: 2004 No 35 s ME 4(1)(cd), (2)(bd) OB 16 ICA attribution for personal services Credit (1) An ICA company that is not a qualifying company has an im- putation credit for an amount equal to 38.89% of the personal services attribution under section GB 29 (Attribution rule: cal- culation).
(2) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 14 (attribution for personal ser- vices).

2238 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 19 (3) Credit date The credit date is the last day of the tax year for which the attribution is made.
Deﬁned in this Act: amount, ICA company, imputation credit, imputation credit account, qualifying company, tax year Compare: 2004 No 35 s ME 4(1)(ab), (2)(ab) Section OB 16(1): amended, on 1 April 2011, by section 96 of the Taxation (An- nual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Mat- ters) Act 2010 (2010 No 109).

Section OB 16(1): amended, on 1 April 2008, by section 496 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 17 ICA transfer from policyholder credit account [Repealed] Section OB 17: repealed, on 1 July 2010, by section 386(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OB 18 ICA transfer from ASC account Credit (1) An ICA company has an imputation credit for the transfer of an amount from its available subscribed capital (ASC) account.

The amount is calculated under section OF 5(4) (ASCA trans- fer to imputation credit account).
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 16 (transfer from ASC account).

Credit date The credit date is the day the amount is transferred.
Deﬁned in this Act: amount, ASC account, ICA company, imputation credit, imputation credit account Compare: 2004 No 35 s ME 4(1)(da), (2)(ca) OB 19 ICA transfer to master fund Credit (1) An ICA company that is a master fund has an imputation credit for the transfer of an amount of expenditure under sections DV 5 to DV 7 (which relate to the transfer of expenditure to master funds).
The amount is calculated using the formula— 2239 Part O s OB 20 Income Tax Act 2007 Reprinted as at 29 May 2012 expenditure transferred × tax rate.
(2) (3) (4) Deﬁnition of items in formula In the formula,— (a) expenditure transferred is the amount of expenditure transferred under sections DV 5 to DV 7 (which relate to the expenditure of investment funds) to the company as a master fund: tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts).
(b) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 17 (transfer to master fund).

Credit date The credit date is the last day of the tax year corresponding to the income year in which the expenditure is deducted.
Deﬁned in this Act: amount, basic rate, ICA company, imputation credit, im- putation credit account, income tax, master fund Compare: 2004 No 35 s ME 4(1)(aab), (2)(aab) Section OB 19(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 387(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 19(2)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 20 ICA distribution with Maori authority credit Credit (1) An ICA company has an imputation credit for the amount of a Maori authority credit attached to a distribution received by the company.

Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 18 (distribution with Maori au- thority credit).

Credit date The credit date is the day the distribution is paid.
Deﬁned in this Act: amount, ICA company, imputation credit, Maori authority credit, pay Compare: 2004 No 35 s ME 4(1)(ea), (2)(cb) (2) (3) 2240 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 22 OB 21 ICA balance of Maori authority credit account Credit (1) An ICA company has an imputation credit for an amount equal to the amount of a Maori authority debit under section OK 18 (MACA ﬁnal balance) when the Maori authority stops being a Maori authority.
(2) (3) Table references The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 19 (balance of Maori authority credit account).

The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 10 (ﬁnal balance).

Credit date The credit date is the same as the debit date recorded for the debit under section OK 18.
Deﬁned in this Act: amount, ICA company, imputation credit, Maori authority, Maori authority debit Compare: 2004 No 35 s ME 4(1)(k), (2)(k) OB 22 ICA replacement payment to company under share-lending arrangement Credit (1) An ICA company has an imputation credit for the amount of an imputation credit attached under section OB 64, or treated as attached under section RE 25 (When amount of tax treated as imputation credit) to a replacement payment paid under a share-lending arrangement to the company.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 20 (replacement payment under share-lending arrangement).

Credit date The credit date is the day the replacement payment is paid.
Deﬁned in this Act: amount, ICA company, imputation credit, pay, replacement payment, share-lending arrangement Compare: 2004 No 35 s ME 4(1)(eb), (ec), (2)(cc) 2241 Part O s OB 23 Income Tax Act 2007 Reprinted as at 29 May 2012 OB 23 ICA credit transfer to company Credit (1) An ICA company has an imputation credit for the amount of an imputation credit shown in a credit transfer notice given to the company.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 21 (credit in credit transfer no- tice).

Credit date The credit date is the day the notice is given.
Deﬁned in this Act: amount, credit transfer notice, ICA company, imputation credit Compare: 2004 No 35 s ME 4(1)(ed), (2)(cd) OB 24 ICA credit on resident’s restricted amalgamation Credit (1) An ICA company has an imputation credit for the amount of a credit that arises on or after a resident’s restricted amal- gamation in the imputation credit account of the amalgamated company under 1 of the sections listed in subsection (3).
Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 22 (credit on resident’s restricted amalgamation).
Sections The sections are— (a) section OA 10 (When credits or debits due to amalgam- ating company but not recorded) for imputation credits in the imputation credit account of an amalgamating company: section OA 11 (FDP account on resident’s restricted amalgamation) for an FDP credit in the FDP account of an amalgamating company because the amalgamated company does not maintain an FDP account: [Repealed] section OA 13 (Policyholder credit account on resi- dent’s restricted amalgamation) for a policyholder (b) (c) (d) (2) (3) 2242 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 25 (e) (f) (g) credit in the policyholder credit account of an amal- gamating company because the amalgamated company does not maintain a policyholder credit account: section OA 14 (Continuity of shareholding when group companies amalgamate) for imputation credits in the imputation credit account of a consolidated imputation group that ends its existence on the amalgamation: section OA 16 (When FDP account ends on resident’s restricted amalgamation) for an FDP credit in the FDP account of a consolidated FDP group because the amal- gamated company does not maintain an FDP account: section OA 17 (When policyholder credit account ends on resident’s restricted amalgamation) for the policyholder credits in the policyholder credit account of a consolidated group because the company does not maintain a policyholder credit account.
Deﬁned in this Act: amalgamated company, amalgamating company, amount, consolidated FDP group, consolidated group, consolidated imputation group, FDP account, FDP credit, ICA company, imputation credit, imputation credit account, policyholder credit, policyholder credit account, resident’s restricted amalgamation Compare: 2004 No 35 ss ME 29, MG 17, MI 13 Section OB 24(3)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 93(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 24 list of deﬁned terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 93(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OB 24 list of deﬁned terms CTR credit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 93(2) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).
OB 25 ICA reversal of tax advantage arrangement (1) When this section applies This section applies when it is established that an imputation credit in an ICA company’s imputation credit account was in- correctly determined to be the subject of an arrangement to obtain a tax advantage.
2243 Part O s OB 26 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (4) Credit The company has an imputation credit for an amount equal to the amount of a debit in the company’s imputation credit account under section OB 54.

Table references The imputation credit in subsection (2) is referred to in table O1: imputation credits, row 23 (reversal of tax advantage ar- rangement).
The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 27 (tax advantage ar- rangement).

Credit date The credit date is the same as the debit date of the debit under section OB 54.
Deﬁned in this Act: amount, arrangement, ICA company, imputation credit, imputation credit account, imputation debit, tax advantage Compare: 2004 No 35 s ME 4(1)(h), (2)(f) OB 26 ICA elimination of double debit (1) (2) When this section applies This section applies when an imputation debit in an ICA com- pany’s imputation credit account under section OB 41 has the effect of cancelling an imputation credit under section OB 5. Credit The company has an imputation credit for an amount equal to the amount of the debit referred to in subsection (1), and either— (a) another debit arises under section OB 34 for a refund of the amount of the deposit on a debit date after the debit date for the debit for loss of shareholder continuity; or the deposit is taken into account under section RP 19 (Transfers from tax pooling accounts) in determining the balance of the company’s tax account with the Com- missioner after the debit date for the debit for loss of shareholder continuity.
(b) Table references The table references are as follows: (3) 2244 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 27 (a) (b) (c) (d) the imputation debit in subsection (1) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity): the imputation credit in subsection (1) is referred to in table O1: imputation credits, row 3 (deposit in tax pool- ing account): the imputation credit in subsection (2) is referred to in imputation credits, row 24 (elimination of table O1: double debit): the imputation debit in subsection (2)(a) is referred to in table O2: imputation debits, row 6 (refund from tax pooling account).
Credit date The credit date is the day— (a) (b) the deposit is refunded; or the credit arises in the company’s tax account with the Commissioner.
Deﬁned in this Act: amount, Commissioner, ICA company, imputation credit, imputation credit account, imputation debit, shareholder, tax account with the Commissioner Compare: 2004 No 35 s ME 4(1A), (2A) (4) OB 27 ICA non-resident withholding tax withheld Credit (1) An Australian ICA company has an imputation credit for an amount of tax withheld by the payer of non-resident passive income.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 25 (NRWT withheld).

Credit date The credit date is the day the amount of tax is withheld.
Deﬁned in this Act: amount, amount of tax, Australian ICA company, imput- ation credit, non-resident passive income, non-resident withholding tax, NRWT Compare: 2004 No 35 s ME 4(1B)(a), (2B)(a) 2245 Part O s OB 28 Income Tax Act 2007 Reprinted as at 29 May 2012 OB 28 ICA payment of amount of tax for schedular payment Credit (1) An Australian ICA company has an imputation credit for an amount equal to the amount of tax for a schedular payment paid to the company as a non-resident contractor.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 26 (amount of tax for schedular payment).

Credit date The credit date is the day the amount of tax is withheld.
Deﬁned in this Act: amount, amount of tax, Australian ICA company, imput- ation credit, non-resident contractor, pay, schedular payment Compare: 2004 No 35 s ME 4(1B)(b), (2B)(b) OB 29 ICA payment of schedular income tax Credit (1) An Australian ICA company has an imputation credit for a payment of income tax relating to the company’s schedular income tax liability for income derived under section CR 3, CV 16, or CV 17 (which relate to non-resident insurers, ship- pers, and ﬁlm renters).
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 27 (payment of schedular income tax).

Credit date The credit date is the day the schedular income tax is paid.
Deﬁned in this Act: Australian ICA company, company, imputation credit, in- come, pay, schedular income Compare: 2004 No 35 s ME 4(1B)(c), (2B)(c) Imputation debits OB 30 ICA payment of dividend Debit (1) An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend paid by the company.
2246 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 32 (2) (3) (4) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 2 (payment of dividend).

Debit date The debit date is the day the dividend is paid.

Arrangement for dividend from another company Section GB 37 (Arrangements for payment of dividend by other companies) may apply to treat an amount as a debit under this section.
Deﬁned in this Act: amount, dividend, ICA company, imputation credit, imput- ation debit, pay Compare: 2004 No 35 s ME 5(1)(a), (2)(a) OB 31 ICA allocation of provisional tax Debit (1) An ICA company has an imputation debit for an amount of provisional tax allocated by the company under section RC 32 (Wholly-owned groups of companies) to an underpaid com- pany.
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 3 (allocation of provisional tax).

Debit date The debit date is the day the Commissioner is notiﬁed of the allocation.
Deﬁned in this Act: amount, Commissioner, company, ICA company, imput- ation debit, notify, provisional tax Compare: 2004 No 35 s ME 5(1)(d), (2)(d) OB 32 ICA refund of income tax Debit (1) An ICA company has an imputation debit for the amount of a refund of income tax paid to the company.

Subsection (2) overrides this subsection.
No debit (2) A debit under subsection (1) does not include— 2247 Part O s OB 32 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (ab) (b) (c) a refund of income tax paid for a period when the com- pany was not an ICA company; or a refund of income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policy- holder base income; or a refund of income tax paid before a debit arises under section OB 41, but only to the extent to which the amount of the refund is less than or equal to the amount of the debit; or a refund under subpart LP (Tax credits for supplemen- tary dividends) because the supplementary dividend generating the refund was paid before a debit arises under section OB 41, but only to the extent to which the amount of the refund is less than the amount of the debit.
Table references The table references are as follows: (a) the imputation debit in subsection (1) is referred to in table O2: imputation debits, row 4 (refund of income tax): the imputation debit in subsection (2)(b) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity): the imputation debit in subsection (2)(c) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).
(b) (c) Part-year ICA company The amount of the debit that arises if the company is an ICA company for only part of a tax year is an amount calculated using the formula— ICA days 365 × refund.

Deﬁnition of items in formula In the formula,— (a) ICA days is the number of days in which the company is an ICA company: refund is the amount of the refund.

(b) (3) (4) (5) 2248 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 33 (6) (7) Debit date The debit date is the day the refund is made.
Relationship with section OB 37 This section does not apply to an amount that gives rise to a debit under section OB 37.
Deﬁned in this Act: amount, company, ICA company, imputation debit, income tax, life insurer, pay, schedular income tax liability, schedular policyholder base income, shareholder, supplementary dividend, tax year Compare: 2004 No 35 s ME 5(1)(e), (2)(e) Section OB 32(2)(ab): inserted, on 1 July 2010, by section 388(1) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32(2)(b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 97(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 32(7) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 388(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 32(7): added (with effect on 1 April 2008), on 6 October 2009, by section 388(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 32 list of deﬁned terms life insurer: inserted, on 1 July 2010, by section 388(3) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section OB 32 list of deﬁned terms schedular income tax liability: inserted, on 1 July 2010, by section 388(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 32 list of deﬁned terms schedular policyholder base income: in- serted, on 1 July 2010, by section 388(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 33 ICA amount applied to pay other taxes Debit (1) An ICA company has an imputation debit for— (a) (b) an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts: an increased amount of tax as described in section RP 17B(3) (Tax pooling accounts and their use) applied to pay an amount due under the Inland Revenue Acts other than income tax.
2249 Part O s OB 34 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 5 (amount applied to pay other taxes).
No debit (3) A debit under subsection (1) does not include an amount of overpaid income tax— (a) (b) applied to satisfy a liability for income tax or provi- sional tax; or relating to income tax paid before an imputation debit arises under section OB 41 (table O2: imputation debits, row 14 (debit for loss of shareholder continuity)), but only to the extent to which the amount of overpaid in- come tax is no more than the amount of the debit for loss of shareholder continuity.
(4) (5) Debit date The debit date is the day the amount is applied.

Relationship with section OB 37 This section does not apply to an amount that gives rise to a debit under section OB 37.
Deﬁned in this Act: amount, ICA company, imputation debit, income tax, In- land Revenue Acts, pay, provisional tax, shareholder Compare: 2004 No 35 s ME 5(1)(l), (2)(k) Section OB 33(1): substituted, on 6 October 2009, by section 389(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 33(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 389(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 33(5): added (with effect on 1 April 2008), on 6 October 2009, by section 389(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 34 ICA refund from tax pooling account When this section applies This section applies for an ICA company when— (a) the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under— (1) 2250 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 34 (2) (3) (4) (5) (i) (ii) section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and the intermediary refunds the amount from the tax pool- ing account to the company.
(b) Debit The company has an imputation debit for the amount of the refund.

Table reference The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 6 (refund from tax pooling ac- count).
Debit date for companies other than qualifying companies The debit date for a company that is not a qualifying com- pany is the date found by applying the following paragraphs in order: (a) the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date: the day the refund is made to the extent of the remain- ing amount of the debit that is no more than the credit balance in the imputation credit account on the day of refund: the last day of the previous tax year for the remainder of the debit.
(b) (c) Debit date for qualifying companies The debit date for a qualifying company is the day the refund is made.
Deﬁned in this Act: amount, company, ICA company, imputation credit, imput- ation credit account, imputation debit, intermediary, pay, qualifying company, tax pooling account, tax year Compare: 2004 No 35 s ME 5(1)(ea), (2)(ea), (eb) Section OB 34(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 98(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34(4) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 390(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

2251 Part O s OB 35 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OB 34(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34(4)(b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 98(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 34(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34(5): added (with effect on 1 April 2008), on 6 October 2009, by section 390(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 34(5): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 98(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34 list of deﬁned terms company: inserted (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 34 list of deﬁned terms imputation credit account: inserted (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 34 list of deﬁned terms qualifying company: added (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 34 list of deﬁned terms tax pooling account: inserted (with effect on 1 April 2008), on 7 September 2010, by section 98(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 34 list of deﬁned terms tax year: added (with effect on 1 April 2008), on 6 October 2009, by section 390(2) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 35 ICA transfer within tax pooling account When this section applies This section applies for an ICA company when— (a) the company has an entitlement to an amount in a tax pooling account and has an imputation credit for the entitlement under— (i) section OB 5 (table O1: imputation credits, row 3 (deposit in tax pooling account)); or (1) 2252 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 35 (2) (3) (4) (5) (ii) section OB 6 (table O1: imputation credits, row 4 (transfer from tax pooling account)); and the intermediary transfers the entitlement from the com- pany to another person.
(b) Debit The company has an imputation debit for a tax year for the amount of the transfer of the entitlement to funds in the tax pooling account.

Table reference The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 7 (transfer within tax pooling ac- count).
Debit date for companies other than qualifying companies The debit date for a company that is not a qualifying company is— (a) the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the account on that date; or the day the transfer is made to the extent of the remain- ing amount of the debit that is no more than the credit balance in the imputation credit account on the day of the transfer; or the last day of the previous tax year for the remainder of the debit.
(b) (c) Debit date for qualifying companies The debit date for a qualifying company is the day the transfer is made.
Deﬁned in this Act: amount, ICA company, imputation credit, imputation credit account, imputation debit, intermediary, pay, qualifying company, tax pooling account, tax year Compare: 2004 No 35 s ME 5(1)(eb), (2)(ea), (eb) Section OB 35(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 99(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 35(4)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 391 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 35(5): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 99(2) of 2253 Part O s OB 35B Income Tax Act 2007 Reprinted as at 29 May 2012 the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OB 35B ICA debit for transfer from tax pooling account for policyholder base liability Debit (1) An ICA company has an imputation debit for the amount trans- ferred from a tax pooling account to their tax account with the Commissioner, to the extent to which the company is a life insurer, and the amount satisﬁes its schedular income tax li- ability for schedular policyholder base income or its income tax liability for a life fund PIE that is a multi-rate PIE.
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table imputation debits, row 7B (debit for transfer from tax O2: pooling account for policyholder base liability).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: ICA company, imputation credit, imputation debit, life insurer, schedular income tax liability, schedular policyholder base income, tax year Section OB 35B: inserted, on 1 July 2010, by section 392(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OB 36 ICA refund of FDP Debit (1) An ICA company has an imputation debit for the amount of a refund of FDP paid to the company when it is not an FDPA company.
Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 8 (refund of FDP).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, FDP, FDPA company, ICA company, imputation debit, pay Compare: 2004 No 35 s ME 5(1)(g), (2)(g) (2) (3) 2254 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 37 OB 37 ICA refund of tax credit Debit (1) An ICA company has an imputation debit for— (a) (b) (c) the amount of a transfer under section LA 6(2)(d) (Re- maining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax: the amount of a refund to the company under section LA 6(2)(e): an amount used by the company under section LH 2(6) (Tax credits relating to expenditure on research and de- velopment) to pay an amount payable under an Inland Revenue Act to the extent to which the use does not lead to a refund of income tax.
Exclusion: FDPA companies (1B) Despite subsection (1), an FDPA company does not have an imputation debit to the extent to which the amount transferred, refunded, or used is a tax credit under subpart LF (Tax credits for FDP credits).

(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 9 (refund of tax credit).
Debit date The debit date is— (a) for a debit referred to in subsection (1)(a), the day the amount is transferred: for a debit referred to in subsection (1)(b), the day the amount is refunded: for a debit referred to in subsection (1)(c), the day the amount is applied.
(b) (c) Deﬁned in this Act: amount, FDPA company, ICA company, imputation debit, pay Compare: 2004 No 35 s ME 5(1)(h), (2)(e) Section OB 37(1) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 393(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 37(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2255 Part O s OB 38 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OB 37(1B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 37(1B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 393(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 37(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 393(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 38 ICA overpayment of FDP Debit (1) An ICA company has an imputation debit for an amount of overpaid FDP applied to pay an amount due under the Inland Revenue Acts.

This subsection applies only to a company at a time when it is not an FDPA company.

subsection (3) overrides this subsection.

(2) (3) (4) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 10 (overpayment of FDP).
No debit The debit does not include an overpayment of FDP applied to satisfy a liability for income tax or provisional tax, or relating to a foreign dividend.

Debit date The debit date is the day the amount is applied.
Deﬁned in this Act: amount, FDP, foreign dividend, ICA company, imputation debit, income tax, Inland Revenue Acts, pay, provisional tax Compare: 2004 No 35 s ME 5(1)(m), (2)(k) OB 39 ICA transfer for net foreign attributed income [Repealed] Section OB 39: repealed (with effect on 30 June 2009), on 6 October 2009, by section 395(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2256 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 41 OB 40 ICA attribution for personal services Debit (1) An ICA company has an imputation debit for an amount of an attribution for personal services equal to the amount of an imputation credit under section OB 16.

(2) Table references The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 13 (attribution for personal ser- vices).
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 14 (attribution for personal services).

Accounts adjusted (3) A debit under subsection (1) is recorded in the imputation credit account only if the company has accounted for an attri- bution of income under section GB 29 (Attribution rule: cal- culation).
(4) Debit date The debit date is the last day of the tax year that falls in the income year for which the company accounts in its ﬁnancial statements for the attribution of income referred to in subsec- tion (3).
Deﬁned in this Act: amount, ﬁnancial statements, ICA company, imputation credit, imputation credit account, imputation debit, income, income year, tax year Compare: 2004 No 35 s ME 5(1)(ia), (2)(ha) OB 41 ICA debit for loss of shareholder continuity Debit (1) An ICA company has an imputation debit for the amount equal to the amount of an imputation credit retained in the imput- ation credit account and unused at the time at which share- holder continuity is lost.
(2) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).

When debit arises The debit arises at the time shareholder continuity is lost.
(3) 2257 Part O s OB 42 Income Tax Act 2007 Reprinted as at 29 May 2012 Qualifying companies (3B) This section does not apply to a qualifying company in circum- stances other than those set out in section HA 18 (Treatment of dividends when qualifying company status ends), and that section overrides subsections (1) to (3).

(4) Avoidance arrangements Section GB 34 (ICA arrangements for carrying amounts for- ward) may exclude a company from the application of this sec- tion.
Deﬁned in this Act: amount, ICA company, imputation credit, imputation credit account, imputation debit, qualifying company, shareholder Compare: 2004 No 35 ss HG 13(6), ME 5(1)(i), (2)(h) Section OB 41(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 87(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OB 41(3) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 87(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OB 41(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 87(2) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
Section OB 41(3B) heading: inserted (with effect on 1 April 2008), on 21 De- cember 2010 (applying for the 2008–09 and later income years), by section 117(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section OB 41(3B): inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 117(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section OB 41 list of deﬁned terms qualifying company: inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 117(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section OB 41 compare note: amended (with effect on 1 April 2008), on 21 De- cember 2010 (applying for the 2008–09 and later income years), by section 117(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OB 42 ICA on-market cancellation Debit (1) When an ICA company acquires its shares in an on-market cancellation, it has an imputation debit for an amount calcu- lated using the formula— ASC per share excess × tax rate tax 1 rate.
2258 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 43 (2) (3) (4) (5) Deﬁnitions of items in formula In the formula,— (a) ASC per share excess is the amount distributed on the on-market cancellation that is more than the amount of the available subscribed capital per share calculated under the ordering rule: tax rate is the basic rate of income tax set out in sched- income tax, ule 1, part A, clause 2 (Basic tax rates: ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the tax year in which the acquisition occurs.
(b) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 15 (on-market cancellation).

Negative result If the formula produces a negative result, the debit is treated as zero.

Debit date The debit date is the day the shares are acquired by the com- pany in the on-market cancellation.
Deﬁned in this Act: amount, available subscribed capital, ICA company, im- putation debit, on-market cancellation, ordering rule, RWT, share Compare: 2004 No 35 s ME 5(1)(c), (2)(c) Section OB 42(1) formula: amended, on 1 April 2008, by section 498(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 42(2)(b): substituted, on 1 April 2008, by section 498(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 43 ICA breach of imputation ratio Debit (1) An ICA company has an imputation debit for a breach of the benchmark dividend rules in section OB 61(5) for an amount calculated using the formula— (net dividends × imputation ratio) – attached credits.
(2) Deﬁnition of items in formula In the formula,— (a) net dividends is the total amount of all dividends paid by the company during the tax year, excluding the 2259 Part O s OB 44 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) amount of imputation credits and FDP credits attached to the dividends: imputation ratio is the maximum permitted ratio cal- culated under section OA 18(2) (Calculation of maxi- mum permitted ratios) for an imputation credit or, if less, the greatest imputation ratio of dividends paid by the company for the tax year: attached credits is the total amount of all imputation credits attached to dividends paid by the company for the tax year.
(3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 16 (breach of imputation ratio).

Ratio change declaration (4) A debit under subsection (1) does not arise if the company provides a ratio change declaration under section OB 61(6).

(5) Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, benchmark dividend, dividend, FDP credit, ICA company, imputation credit, imputation debit, imputation ratio, maximum per- mitted ratio, tax year Compare: 2004 No 35 s ME 5(1)(f), (2)(f) OB 44 ICA debit on leaving wholly-owned group Debit (1) An ICA company (company A) has an imputation debit for an amount equal to the amount of an imputation debit that another company (company B) chooses under section OB 13 as a debit to company A’s imputation credit account when company B leaves a wholly-owned group of companies.
(2) Table reference The imputation debit in subsection (1) is referred to in table imputation debits, row 17 (debit balance on leaving O2: wholly-owned group).

2260 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 45 (3) Debit date The debit date is the date when the company B stops being part of the wholly-owned group.
Deﬁned in this Act: amount, company, ICA company, imputation credit ac- count, imputation debit, wholly-owned group of companies Compare: 2004 No 35 ss ME 5(1)(fb), (2)(fb), ME 9B(2)(a)(i) OB 45 ICA redemption debit Debit (1) An ICA company has an imputation debit for the amount of a redemption debit.
When redemption debit arises (2) A redemption debit arises when— (a) (b) (c) (d) a company that is not an Australian ICA company is— (i) (ii) the manager of a unit trust; or the trustee or manager of a group investment fund; and the company derives a dividend on the redemption or cancellation of— (i) (ii) a unit issued by the unit trust; or an interest of an investor in the group investment fund; and the company has acquired the unit or interest in the or- dinary course of its management activities for the unit trust or group investment fund; and the unit or interest had been acquired by the company on the same terms as those offered to the investors in the unit trust or group investment fund.
Calculating amount The debit is for the greater of the amounts described in subsec- tions (4) and (6) calculated for the income year in which the company derived the dividend referred to in subsection (2)(b).

First amount The ﬁrst amount is calculated using the formula— credits attached – imputation debits.
Deﬁnition of items in formula In the formula in subsection (4),— (3) (4) (5) 2261 Part O s OB 45 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) credits attached is the total amount of all imputation credits and FDP credits attached to dividends derived in the circumstances set out in subsection (2) by the company for the income year: imputation debits is the total amount of all imputation debits arising for the income year under— (i) section OB 41 in the company’s imputation credit account; or section OP 42 (Consolidated ICA debit for loss of shareholder continuity) in the imputation credit account of the consolidated imputation group of which the company is part.
(ii) Second amount The second amount is calculated using the formula— (6) total dividends taxable income × (tax liability debits).
Deﬁnition of items in formula In the formula in subsection (6),— (a) (b) (c) (d) total dividends is the total amount of all dividends de- rived in the circumstances set out in subsection (2), in- cluding imputation credits and FDP credits attached to the dividends: taxable income is the taxable income of the company for the income year in which the dividends are derived: tax liability is the company’s income tax liability for the income year: debits is the imputation credits attached to the dividends that have been cancelled by an imputation debit arising during the income year under — (i) section OB 41 in the company’s imputation credit account; or section OP 42 in the imputation credit account of the consolidated imputation group of which the company is part.
(ii) Table references The table references are as follows: (a) the imputation debit in subsection (1) is referred to in table O2: imputation debits, row 18 (redemption debit): (7) (8) 2262 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 46 (b) (c) (d) (e) the imputation debit in subsection (5)(b)(i) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity): the imputation debit in subsection (5)(b)(ii) is referred to in table O20: imputation debits of consolidated im- putation groups, row 16 (debit for loss of shareholder continuity): the imputation debit in subsection (7)(d)(i) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity): the imputation debit in subsection (7)(d)(ii) is referred to in table O20: imputation debits of consolidated im- putation groups, row 16 (debit for loss of shareholder continuity).
(9) Debit date The debit date is the date on which the company or the group’s nominated company ﬁles the return of income for the income year in which the dividend is derived.
Deﬁned in this Act: amount, Australian ICA company, company, consolidated imputation group, dividend, FDP credit, group investment fund, ICA company, imputation credit, imputation credit account, imputation debit, income, income tax, income tax liability, income year, investor, nominated company, return of income, shareholder, tax, taxable income, trustee, unit trust Compare: 2004 No 35 s ME 41 OB 46 ICA transfer from member fund Debit (1) An ICA company has an imputation debit for an amount cal- culated using the formula— expenditure transferred × tax rate.
(2) Deﬁnition of items in formula In the formula,— (a) expenditure transferred is the amount of expenditure transferred under sections DV 5 to DV 7 (which relate to expenditure related to investment funds) by the com- pany, as a member fund, to a master fund: tax rate is the basic rate of income tax set out in sched- income tax, ule 1, part A, clause 2 (Basic tax rates: ESCT, RSCT, RWT, and attributed fringe beneﬁts).
(b) 2263 Part O s OB 47 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 19 (transfer from member fund).

Debit date The debit date is the last day of the tax year corresponding to the income year in which the expenditure is deducted.
Deﬁned in this Act: amount, basic rate, ICA company, imputation debit, master fund, tax year Compare: 2004 No 35 s ME 5(1)(ja), (2)(ia) Section OB 46(2)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 47 Debit for policyholder base imputation credits Debit (1) An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend derived by the com- pany, to the extent to which it is derived by it as a life insurer and apportioned to their policyholder base.

(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 20 (debit for policyholder base imputation credits).
Debit date The debit date is the last day of the tax year.

Deﬁned in this Act: ICA company, imputation credit, imputation debit, life insurer, policyholder base, tax year Section OB 47: substituted, on 1 July 2010, by section 396(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 48 ICA credit balance when Maori authority credit account starts Debit (1) An ICA company has an imputation debit for a credit balance in the company’s imputation credit account immediately be- fore the company becomes a Maori authority.

2264 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 50 (2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 21 (credit balance when Maori authority credit account starts).
Debit date The debit date is the day before the company becomes a Maori authority.

Deﬁned in this Act: ICA company, imputation credit account, imputation debit, Maori authority Compare: 2004 No 35 s ME 5(1)(ka), (2)(ja) OB 49 ICA replacement payment by company under share-lending arrangement Debit (1) An ICA company has an imputation debit for the amount of an imputation credit attached under section OB 64 to a replace- ment payment paid by the company under a share-lending ar- rangement.
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 22 (replacement payment under share-lending arrangement).

Debit date The debit date is the day the replacement payment is paid.
Deﬁned in this Act: amount, ICA company, imputation credit, imputation debit, pay, replacement payment, share-lending arrangement Compare: 2004 No 35 s ME 5(1)(ab), (2)(ab) OB 50 ICA returning share transfer Debit (1) An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend paid to the company as a share user in a returning share transfer that is not a share- lending arrangement.
(2) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 23 (returning share transfer).

2265 Part O s OB 51 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, dividend, ICA company, imputation credit, imput- ation debit, pay, returning share transfer, share-lending arrangement, share user Compare: 2004 No 35 s ME 5(1)(ac), (2)(ac) OB 51 ICA credit transfer by company Debit (1) An ICA company has an imputation debit for the amount of an imputation credit attached to a dividend that is paid to the company and shown in a credit transfer notice given by the company.
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 24 (credit transfer notice).

Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, credit transfer notice, dividend, ICA company, imputation credit, imputation debit, pay Compare: 2004 No 35 s ME 5(1)(ad), (2)(ac) OB 52 ICA imputation credit of consolidated imputation group (1) When this section applies This section applies when— (a) (b) an ICA company that is part of a consolidated imput- ation group has a credit in its imputation credit account; and a debit arises in the imputation credit account of the consolidated imputation group that is not cancelled by a credit in the imputation credit account arising before or on the same date as the company’s credit.
(2) Debit The ICA company has an imputation debit for the amount of the imputation credit that is transferred to the imputation credit account of the consolidated imputation group.

2266 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 53 (3) (4) Table reference The imputation debit in subsection (2) is referred to in table O2: imputation debits, row 25 (credit of consolidated imput- ation group).
Debit date The debit date is the day on which the imputation credit is recorded in the imputation credit account of the consolidated imputation group.
Deﬁned in this Act: amount, consolidated imputation group, ICA company, imputation credit, imputation credit account, imputation debit Compare: 2004 No 35 s ME 13(3) OB 53 ICA debit on resident’s restricted amalgamation Debit (1) An ICA company has an imputation debit for the amount of a debit described in subsection (3) that arises on or after a resi- dent’s restricted amalgamation in the account of the amalga- mated company under 1 of the sections listed in subsection (3).
Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 26 (debit on resident’s restricted amalgamation).
(2) (3) Sections The sections are— (a) (b) (c) (d) section OA 10 (When credits or debits due to amalgam- ating company but not recorded) for imputation debits in the imputation credit account of an amalgamating company: section OA 11 (FDP account on resident’s restricted amalgamation) for FDP debits in the FDP account of an amalgamating company because the amalgamated com- pany does not maintain an FDP account: [Repealed] section OA 13 (Policyholder credit account on resi- dent’s restricted amalgamation) for the policyholder debits in the policyholder credit account of an amal- gamating company because the amalgamated company does not maintain a policyholder credit account: 2267 Part O s OB 54 Income Tax Act 2007 Reprinted as at 29 May 2012 (f) (e) (g) section OA 14 (Continuity of shareholding when group companies amalgamate) for imputation debits in the imputation credit account of a consolidated imputation group that ends its existence on the amalgamation: section OA 16 (When FDP account ends on resident’s restricted amalgamation) for FDP debits in the FDP ac- count of a consolidated group because the amalgamated company does not maintain an FDP account: section OA 17 (When policyholder credit account ends on resident’s restricted amalgamation) for the policy- holder debits on the policyholder credit account of a consolidated group because the amalgamated company does not maintain a policyholder credit account.
Deﬁned in this Act: amalgamated company, amalgamating company, amount, consolidated group, consolidated imputation group, FDP account, FDP debit, ICA company, imputation credit account, imputation debit, policyholder credit account, policyholder debit, resident’s restricted amalgamation Compare: 2004 No 35 ss ME 29, MG 17, MI 13 Section OB 53(3)(c): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 94(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OB 53 list of deﬁned terms CTR account: repealed (with effect on 1 July 2011), on 7 May 2012, by section 94(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OB 53 list of deﬁned terms CTR debit: repealed (with effect on 1 July 2011), on 7 May 2012, by section 94(2) of the Taxation (International Invest- ment and Remedial Matters) Act 2012 (2012 No 34).
OB 54 ICA tax advantage arrangement Debit (1) An ICA company has an imputation debit for the amount of a debit for a tax advantage arrangement determined under sec- tion GB 36 (Reconstruction of imputation arrangements to ob- tain tax advantage).

(2) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 27 (tax advantage arrangement).
2268 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 56 (3) Debit date The debit date is the last day of the tax year in which the debit for the tax advantage arrangement is determined.
Deﬁned in this Act: amount, arrangement, ICA company, imputation debit, tax advantage, tax year Compare: 2004 No 35 s ME 5(1)(j), (2)(i) OB 55 ICA retrospective imputation credit Debit (1) An ICA company has an imputation debit for an imputation credit that is retrospectively attached to a non-cash dividend under section OB 62.

(2) (3) Table reference The imputation debit in subsection (1) is referred to in table imputation debits, row 28 (retrospective imputation O2: credit).
Debit date The debit date is the day the dividend is paid.

Deﬁned in this Act: ICA company, imputation credit, imputation debit, non- cash dividend, pay Compare: 2004 No 35 s ME 6(4)(a) OB 56 ICA ﬁnal balance Debit (1) An ICA company has an imputation debit for a credit balance in the imputation credit account when the company stops being an ICA company.

(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 29 (ﬁnal balance).
Debit date The debit date is the day the company stops being an ICA company.

Deﬁned in this Act: ICA company, imputation credit account, imputation debit Compare: 2004 No 35 s ME 5(1)(k), (2)(j) 2269 Part O s OB 57 Income Tax Act 2007 Reprinted as at 29 May 2012 OB 57 ICA refund of NRWT Debit (1) An Australian ICA company has an imputation debit for an amount of a refund of NRWT that gave rise to an imputation credit under section OB 27.
(2) (3) Table references The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 30 (refund of NRWT).

The imput- ation credit in subsection (1) is referred to in table O1: imput- ation credits, row 25 (NRWT withheld).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, amount of tax, Australian ICA company, imput- ation credit, imputation debit, NRWT Compare: 2004 No 35 s ME 5(1A)(a), (2A) OB 58 ICA refund of amount of tax for schedular payment Debit (1) An Australian ICA company has an imputation debit for the amount of a refund of an amount of tax for a schedular payment that gave rise to an imputation credit under section OB 28.
Table references The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 31 (refund of amount of tax for schedular payment).

The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 26 (amount of tax for schedular payment).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, amount of tax, Australian ICA company, imput- ation credit, imputation debit, pay, schedular payment Compare: 2004 No 35 s ME 5(1A)(b), (2A) (2) (3) 2270 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 60 OB 59 ICA refund of schedular income tax Debit (1) An Australian ICA company has an imputation debit for the amount of a refund of schedular income tax that gave rise to an imputation credit under section OB 29.
(2) (3) Table references The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 32 (refund of schedular income tax).

The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 27 (payment of schedular income tax).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, Australian ICA company, imputation credit, im- putation debit, pay Compare: 2004 No 35 s ME 5(1A)(c), (2A) Imputation credits attached to dividends OB 60 Imputation credits attached to dividends Attaching imputation credits (1) When an ICA company pays a dividend, it may attach an im- putation credit to the dividend.

Section OB 63 overrides this section.


(2) Retrospective attachment The ICA company may determine that an imputation credit is retrospectively attached to a dividend in the circumstances described in section OB 62.

Imputation ratio for dividend (3) A dividend with an imputation credit attached has an imput- ation ratio calculated using the formula— credit attached net dividend paid.
(4) Deﬁnition of items in formula In the formula in subsection (3),— (a) credit attached is the amount of the imputation credit attached to the dividend: 2271 Part O s OB 61 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) net dividend paid is the amount of the dividend paid, excluding the amount of the imputation credit and FDP credit attached.
Maximum permitted ratio (5) A dividend with an imputation credit attached must not have an imputation ratio that is more than the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios).

Conversion of AUD dividend (6) A dividend paid in Australian currency by an Australian ICA company must be converted into New Zealand currency, cal- culated using the formula— Australian dollar value × exchange rate.
(7) Deﬁnition of items in formula In the formula in subsection (6),— (a) (b) Australian dollar value is the amount of the dividend in Australian dollars: exchange rate is the close of trading spot exchange rate for the Australian dollar on— (i) the day the dividend is declared if that day is no more than 3 months before the dividend is paid; or the day the dividend is paid if that day is more than 3 months after the dividend is declared.
(ii) Deﬁned in this Act: amount, Australian ICA company, close of trading spot ex- change rate, dividend, FDP credit, ICA company, imputation credit, imputation ratio, income year, maximum permitted ratio, pay, tax year Compare: 2004 No 35 ss ME 1B, ME 6, ME 8(1), (2) OB 61 ICA benchmark dividend rules When this section applies This section applies when an ICA company pays a dividend on more than 1 occasion during a tax year.

Subsection (2) overrides this subsection.


Exclusions This section does not apply to the following dividends: (a) a dividend that is the subject of an election by a statutory producer board under sections OB 73 to OB 75: (1) (2) 2272 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 61 (b) (c) a dividend that is the subject of an election by a co-op- erative company under sections OB 78 to OB 80: a dividend paid when the company is not an ICA com- pany.
Benchmark dividend The ﬁrst dividend of the tax year is the benchmark dividend.

Same imputation ratio The imputation ratio of a dividend paid after the benchmark dividend must be the same as the imputation ratio of the bench- mark dividend.

This subsection is modiﬁed by section OZ 9 (Benchmark dividends: ratio change).
(3) (4) Breach of imputation ratio (5) A breach of subsection (4) gives rise to an amount of an imput- ation debit under section OB 43 (table O2: imputation debits, row 16 (breach of imputation ratio)) calculated using the for- mula in section OB 43(1).
Ratio change declaration (6) An ICA company may notify the Commissioner that the divi- dend is not part of an arrangement to obtain a tax advantage by providing a ratio change declaration stating that the dividend is not part of an arrangement to which sections GB 35 and GB 36 (which relate to imputation arrangements to obtain tax advan- tage) apply.

The company must provide the declaration before the dividend is paid, or by a later date if the Commissioner al- lows.
For the purposes of this subsection, the dividend must not be part of an arrangement to obtain a tax advantage.

This subsection overrides subsection (5).


Consolidated imputation group [Repealed] [Repealed] (7) Group debit (8) Under section OP 2(2) (When credits and debits arise only in group accounts), a breach of an imputation ratio alternatively gives rise to an imputation debit under section OP 43 (Consoli- dated ICA breach of imputation ratio) (table O20: imputation debits of consolidated imputation groups, row 17 (breach of imputation ratio)) if the company is part of a consolidated im- putation group.
2273 Part O s OB 62 Income Tax Act 2007 Reprinted as at 29 May 2012 (9) Treatment of group dividends In the application of this section to a consolidated imputation group, a dividend paid between group companies is disre- garded.
Deﬁned in this Act: arrangement, benchmark dividend, Commissioner, com- pany, consolidated imputation group, co-operative company, dividend, ICA company, imputation debit, imputation ratio, notify, pay, statutory producer board, tax advantage, tax year Compare: 2004 No 35 ss ME 8(2), (3), ME 14(2) Section OB 61(4): amended, on 1 October 2010, by section 12 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OB 61(7) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 397(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 61(7): repealed (with effect on 1 April 2008), on 6 October 2009, by section 397(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 62 Retrospective attachment of imputation credits When this section applies This section applies in relation to a dividend arising from a transfer pricing arrangement or under subpart FL (Emigration of resident companies) when— (a) an ICA company pays a non-cash dividend whose amount is later adjusted under section GC 7 or GC 8 (which relate to transfer pricing arrangements): an emigrating company that was an ICA company im- mediately before the time of emigration and is treated under section FL 2 (Treatment of emigrating companies and their shareholders) as paying a distribution to share- holders.
(b) Imputation credits attached retrospectively The company may attach retrospectively an imputation credit to the dividend or distribution, as applicable.
Limit for ICA company The amount of all imputation credits attached retrospectively by a company referred to in subsection (1)(a) during a tax year must not be more than the lesser of— (1) (2) (3) 2274 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 62 (a) (b) the credit balance of the company’s imputation credit account at the end of the tax year in which the dividend is paid; or the credit balance of the company’s imputation credit account at the end of each of the tax years in the period that runs from the tax year of payment of the dividend to the tax year in which the credit is attached retrospect- ively under subsection (1).
Limit for emigrating company The amount of all imputation credits attached retrospectively by a company referred to in subsection (1)(b) must be no more than the credit balance of the company’s imputation credit ac- count immediately before the time of emigration.
When subsection (6) applies Subsection (6) applies if— (a) a company provides a company dividend statement and issues a shareholder dividend statement for a non-cash dividend at the time it retrospectively attaches an imput- ation credit; and the adjustment under section GC 7 or GC 8 results in a payment of income tax; and the attachment of the imputation credit would otherwise result in a liability for imputation penalty tax.
(b) (c) New credit date The credit date for the imputation credit arising for the pay- ment of the income tax referred to in subsection (5)(b) is the day on which the non-cash dividend is paid, and the company is excused a breach of section 69 of the Tax Administration Act 1994 for not ﬁling a correct annual ICA return through the retrospective attachment of an imputation credit.
(4) (5) (6) Statements still required (7) A company that does not meet the requirement of subsection (5)(a) remains liable to— (a) (b) provide a company dividend statement; and issue a shareholder dividend statement for the non-cash dividend and the retrospective attachment of an imput- ation credit.
2275 Part O s OB 63 Income Tax Act 2007 Reprinted as at 29 May 2012 (8) (9) When subsection (9) applies Subsection (9) applies when an amount of tax paid by an emi- grating company is attributable to income derived before the time of emigration or to the application of subpart FL.
Amount of tax paid by emigrating company The amount of tax referred to in subsection (8) is treated for the purposes of this subpart as paid immediately before the time of emigration if— (a) the company determines to attach an imputation credit to a dividend; and the imputation credit is not less than the amount of tax; and the company notiﬁes the Commissioner when providing the company dividend statement.
(b) (c) Deﬁned in this Act: amount, amount of tax, annual ICA return, arrangement, Commissioner, company dividend statement, dividend, emigrating company, ICA company, imputation credit, imputation credit account, imputation penalty tax, income, income tax, non-cash dividend, notify, pay, shareholder, share- holder dividend statement, tax year, time of emigration Compare: 2004 No 35 s ME 6 OB 63 Australian dividends No credits attached (1) Despite section OB 60(1), an ICA company must not attach an imputation credit to a dividend if— (a) (b) (c) the Income Tax Assessment Act 1997 (Aust) applies to the payment of the dividend by the company; and the dividend is paid in relation to a share that is, or forms part of, a debt interest under that Act; and the payment of the dividend is included in the com- pany’s return of income to the Australian Federal Com- missioner of Taxation.
Exclusion: groups of companies Subsection (1) does not apply in relation to a share issued be- fore 21 July 2005 if, when the dividend is paid, the shareholder and the ICA company— (a) (b) are not part of the same group of companies: are part of the same wholly-owned group of companies and not resident in New Zealand.
(2) 2276 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 64 (3) Exclusion: reasons for acquisition of shares Subsection (1) does not apply in relation to a share issued be- fore 21 July 2005 if— (a) (b) the shareholder and the ICA company are part of the same group of companies; and the shareholder acquired the share— (i) (ii) as part of a sharebroking business: as an investment held by the shareholder as part of an insurance business: as security for a loan given as part of a business of lending money: as a trustee for a beneﬁciary who is not a com- pany that is part of the same group of companies as the shareholder: for a reason that does not include the fact that the shareholder and the ICA company were part of the same group of companies.
(iii) (iv) (v) Deﬁned in this Act: business, company, dividend, group of companies, ICA company, imputation credit, pay, resident in New Zealand, share, shareholder, trustee, wholly-owned group of companies Compare: 2004 No 35 s ME 6(1B)–(1D) OB 64 Replacement payments Attaching credits (1) On making a replacement payment, a share user under a share- lending arrangement may attach an imputation credit to the payment.
(2) Amount of credit The amount of the imputation credit must be equal to or less than the amount of any imputation credit attached to a dividend relating to the replacement payment that is received by the share user before the replacement payment is made.
Deﬁned in this Act: amount, dividend, imputation credit, pay, replacement pay- ment, share-lending arrangement, share user Compare: 2004 No 35 s ME 6B 2277 Part O s OB 65 Income Tax Act 2007 Reprinted as at 29 May 2012 Further income tax OB 65 Further income tax for ICA closing debit balance Liability (1) An ICA company is liable to pay further income tax for a debit balance in the company’s imputation credit account at the end of a tax year.
Exclusion (2) An imputation debit arising under section OB 46 (table O2: imputation debits, row 19 (transfer from member fund)) is dis- regarded when determining under subsection (1) if the com- pany has a debit balance at the end of a tax year.

(3) Due date The company must pay the further income tax to the Commis- sioner no later than 20 June following the end of the tax year.
Deﬁned in this Act: Commissioner, company, further income tax, ICA com- pany, imputation credit account, imputation debit, pay, tax year Compare: 2004 No 35 s ME 9(1), (1A), (2) OB 66 Further income tax when company stops being ICA company Liability (1) An ICA company is liable to pay further income tax for a debit balance in the company’s imputation credit account when the company stops being an ICA company.
Due date The company must pay the further income tax to the Commis- sioner— (a) by the day the company stops being an ICA company; or for a company that is no longer an ICA company be- cause it becomes a portfolio investment entity, by the end of the tax year in which it stops being an ICA com- pany.
(b) (2) 2278 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 67 Paramount section (3) A company that stops being an ICA company on the last day of a tax year is liable to pay further income tax under this section and not under section OB 65.
Deﬁned in this Act: Commissioner, company, further income tax, ICA com- pany, imputation credit account, pay, portfolio investment entity, tax year Compare: 2004 No 35 s ME 9(3) Section OB 66(2): substituted, on 1 April 2008, by section 499(1) of the Taxa- tion (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 66 list of deﬁned terms portfolio investment entity: inserted, on 1 April 2008, by section 499(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 67 Reduction of further income tax Debit at previous year-end (1) An ICA company’s liability for further income tax under sec- tions OB 65 and OB 66 may be reduced under subsection (2) if— (a) a debit balance existed in the company’s imputation credit account at the end of a tax year; and the credits that arise in the account in the following tax year totals less than the debit balance; and the company notiﬁes the Commissioner.
(b) (c) (2) (2B) Reduction applying for consecutive tax years In relation to 2 tax years that are consecutive, the liability for further income tax at the end of the second tax year is reduced by the amount calculated using the formula— debit balance at end of second year ﬁrst year adjustment.
Deﬁnition of items in formula In the formula in subsection (2),— (a) (b) debit balance at end of second year is the amount of the debit balance in the company’s imputation credit account at the end of the second tax year: ﬁrst year adjustment is the amount— (i) of the ﬁrst year’s debit balance in the company’s imputation credit account less the credits made to the account during the second tax year; and that cannot be less than zero.
(ii) 2279 Part O s OB 67 Income Tax Act 2007 Reprinted as at 29 May 2012 Qualifying companies The liability of an ICA company that is a qualifying company for further income tax under sections OB 65 and OB 66 may be reduced under subsection (4) if an imputation debit arises under section OB 32 (table O2: imputation debits, row 4 (re- fund of income tax)) in the company’s imputation credit ac- count before the end of the tax year for which the liability arises.
Amount of reduction The liability of the qualifying company for further income tax at the end of the tax year referred to in subsection (3) is reduced by an amount calculated using the formula— refunds – credits.
Deﬁnition of items in formula In the formula in subsection (4),— (a) refunds is the total amount of all refunds of income tax paid to the company before the debit balance creating the liability for further income tax referred to in subsec- tion (3) arises: credits is the total amount of all credits to the com- pany’s imputation credit account for the period that runs from the tax year in which the ﬁrst refund was received to the time the calculation is made.
(b) Deﬁned in this Act: amount, Commissioner, further income tax, ICA company, imputation credit account, imputation debit, imputation rules, income tax, no- tify, pay, qualifying company, tax year Compare: 2004 No 35 s ME 9(7)–(9) Section OB 67(2) heading: substituted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), pursuant to section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 67(2): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OB 67(2B) heading: inserted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 67(2B): inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
(3) (4) (5) 2280 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 69 Section OB 67(5): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 113(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OB 68 Income tax paid satisfying liability for further income tax Election (1) On meeting the requirements of subsection (2), an ICA com- pany that is liable for further income tax may choose to satisfy the liability through a payment of income tax.

(2) (3) (4) Requirements The company must pay the income tax— (a) after the end of the tax year in which the relevant debit balance arises; and for an income year corresponding to the tax year in which the company is an ICA company.
(b) Payment credited The payment of income tax satisﬁes the company’s liability to pay further income tax.

When treated as paid The further income tax is treated as paid on the date on which the Commissioner receives the payment of income tax.
Deﬁned in this Act: Commissioner, further income tax, ICA company, income tax, income year, pay, tax year Compare: 2004 No 35 s ME 9(5A), (8), (9) OB 69 Further income tax paid satisfying liability for income tax Election (1) An ICA company that pays further income tax may choose to treat the payment as satisfying a liability of the company to pay income tax or provisional tax.
(2) ICA company status The liability for income tax or provisional tax referred to in subsection (1) must be for an income year corresponding to a tax year in which the company is an ICA company.
2281 Part O s OB 69 Income Tax Act 2007 Reprinted as at 29 May 2012 Alternative for consolidated imputation group (3) A company that is part of a consolidated imputation group may choose that the payment under subsection (1) satisﬁes a group liability for income tax or provisional tax that arises at or after the time of payment.

(4) When treated as paid The liability for income tax or provisional tax is treated as paid on the day on which the further income tax is paid.
Australian ICA company (5) An Australian ICA company may choose to convert a payment of further income tax into a tax loss of an amount calculated under subsection (7).

Subsection (6) overrides this subsection.

Requirement The election under subsection (5) may be made only if no possibility exists that the further income tax can be credited against a future income tax liability of the company.
Tax loss For the purposes of subsection (5), the amount of the tax loss for the payment of further income tax is calculated using the formula— further income tax paid tax rate.
Deﬁnition of items in formula In the formula,— (a) (b) further income tax paid is the amount of further in- come tax paid that is not credited against an income tax liability: tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) at the time the further income tax is paid.
Beneﬁt of the loss For the purposes of subsection (5), the company may choose that the tax loss is attributed to itself or to another company that is part of the same wholly-owned group of companies.

(6) (7) (8) (9) 2282 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 71 When loss is attributed (10) The tax loss referred to in subsection (5) is a loss for the in- come year corresponding to the tax year in which the company paid the further income tax.
Deﬁned in this Act: amount, Australian ICA company, basic rate, consolidated imputation group, further income tax, ICA company, income tax, income tax liability, income year, pay, provisional tax, tax loss, tax year, wholly-owned group of companies Compare: 2004 No 35 ss ME 9(5), (5B), ME 13(6) Section OB 69(8)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 70 Application of other provisions When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994— (a) apply to further income tax as if they addressed further income tax and not income tax; and apply, modiﬁed as necessary, to ensure their application to further income tax rather than income tax; and do not override the imputation rules or section 101 of the Tax Administration Act 1994.
(b) (c) Deﬁned in this Act: further income tax, imputation rules, income tax Compare: 2004 No 35 s ME 9(6) Imputation additional tax OB 71 Imputation additional tax on leaving wholly-owned group (1) When this section applies This section applies in a tax year when— (a) a company (company A) stops being part of a wholly- owned group of companies because of a change in the ultimate owner of the company; and [Repealed] the loss balance carried forward from the previous tax year for companies in the group is more than $1,000,000.
(b) (c) Sources of liability (1B) Company A is liable for imputation additional tax under— 2283 Part O s OB 71 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) subsection (2), if the company has a debit balance in the imputation credit account when the ultimate owner of the company changes: subsection (4), if the company has an amount of ex- cess entitlement under subsection (5) when the ultimate owner of the company changes.
Liability arising from debit balance (2) At the time company A stops being part of the wholly-owned group, it may choose to reduce or eliminate the debit balance by paying imputation additional tax of an amount no greater than the debit balance but, in dealing with the liability, it may transfer some or all of the debit balance under subsection (3) or choose to use its excess entitlement under subsection (4), or a combination of both.
Debit balance Company A may choose to transfer under section OB 44 some or all of a debit balance in the company’s imputation credit account to another company (company B) in the same wholly- owned group.

An imputation additional tax liability remains for the amount of the debit balance that is not transferred.
Liability arising from excess entitlement Company A is liable for an amount of imputation additional tax equal to the amount of the excess entitlement described in subsection (5) reduced, to no less than zero, by the amount of any payment that company A— (a) made as provisional tax or income tax; and (b) chooses to treat as having been paid by company B.
Amount of excess entitlement Company A’s excess entitlement at the time it stops being part of the wholly-owned group is 1 of the following amounts: (a) zero, if the credit balance of its imputation credit ac- count at the time is equal to or more than— (i) the amount in the tax pooling account provided by or for the beneﬁt of company A that is more than its liability to pay income tax or provisional tax at the time; or the entitlement company A would have to a re- fund under sections RM 2, and RM 4 to RM 6 (ii) (3) (4) (5) 2284 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 71 (which relate to refunds of excess tax) as if sec- tions RM 13 to RM 17 (which relate to limits on refunds) did not apply; or (b) (c) the total of the amounts referred to in paragraph (a)(i) and (ii) if no credit balance exists at the time; or the excess of the total of the amounts referred to in para- graph (a)(i) and (ii) over the credit balance, if paragraph (b) does not apply.
Due date If company A chooses to pay imputation additional tax under subsections (2) and (4), it must pay the amount to the Com- missioner no later than the 20th day of the month following the month in which company A stops being part of the group.

Joint liability Company A and all companies in the group are jointly liable for a payment of imputation additional tax under subsection (6).

A payment of imputation additional tax does not satisfy any other liability of company A or the group.
Payment by excess tax Company A, or another company in the wholly-owned group, may choose to apply an excess tax payment to satisfy company A’s liability.

(6) (7) (8) Form of election (9) An election under this section must follow the form of an elec- tion under section OB 13(5).

However, if subsections (3) or (4) apply to transfer a debit or treat an amount of tax as having been paid, company A must also provide a notice of agreement from company B in relation to the amount of excess tax pay- ment.
Deﬁned in this Act: amount, Commissioner, company, excess tax payment, imputation additional tax, imputation credit account, income tax, income tax liability, pay, provisional tax, tax loss, tax pooling account, tax year, ultimate owner, wholly-owned group of companies Compare: 2004 No 35 s ME 9B Section OB 71(1)(b): repealed (with effect on 1 April 2008), on 6 October 2009, by section 398(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 71(1B) heading: inserted (with effect on 1 April 2008), on 7 Sep- tember 2010, by section 100(1) of the Taxation (Annual Rates, Trans-Tasman 2285 Part O s OB 72 Income Tax Act 2007 Reprinted as at 29 May 2012 Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(1B): inserted (with effect on 1 April 2008), on 7 September 2010, by section 100(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 71(2) heading: substituted (with effect on 1 April 2008), on 7 Sep- tember 2010, by section 100(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(4) heading: substituted (with effect on 1 April 2008), on 7 Sep- tember 2010, by section 100(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 71(4): substituted (with effect on 1 April 2008), on 7 September 2010, by section 100(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 71(4)(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 398(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OB 71(5)(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 398(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OB 71(6): amended (with effect on 1 April 2008), on 7 September 2010, by section 100(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 71(9): amended (with effect on 1 April 2008), on 6 October 2009, by section 398(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OB 72 Imputation additional tax on joining wholly-owned group Liability (1) An ICA company to which subsection (2) applies may be liable for imputation additional tax under— (a) subsection (3) as the company’s ﬁrst liability under this section: subsection (5) as the company’s second liability under this section.
(b) Liable company The company is 1 to which all of the following apply: (a) the company is or was recently part of a wholly-owned group of companies (the former group); and (2) 2286 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 72 (b) (c) the company has or will soon join a different wholly- owned group of companies (the new group); and the former group has a loss balance carried forward from an earlier tax year of more than $1,000,000 for the tax year before the income year corresponding to the tax year in which the company changes groups.
(3) (4) (5) First liability The company is liable for imputation additional tax if, at a particular time,— (a) a debit balance exists in the company’s imputation credit account; and an imputation debit arose when the company was part of the former group; and the imputation additional tax liability of the company has not been paid under section OB 71 by the company or another company in the former group.
(b) (c) Amount of liability The amount of the imputation additional tax liability under subsection (3) is equal to the amount of the imputation debit at the time the company becomes part of the new group.
Second liability The company is liable for an amount of imputation additional tax, equal to the excess entitlement determined under subsec- tion (6), if a group of people hold common voting interests in the new group that exceed by 67% or more the common voting interests in the former group that are held by the same people immediately before the company joins the new group.
Possible liability under section OB 72B (5B) The company is liable for an amount of imputation additional tax given by section OB 72B(8) if the requirements of that provision are met.
(6) Excess entitlement The company’s excess entitlement at a particular time is 1 of the following amounts: (a) zero, if the credit balance of the company’s imputation credit account at the time is equal to or more than the amount (the total refundable amount) that is the total of the following: 2287 Part O s OB 72 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) the amount in the tax pooling account provided by or for the beneﬁt of the company that is more than the company’s liability to pay income tax or provisional tax at the time: the amount of the refund to which the company is entitled under sections RM 2 and RM 4 to RM 6 (which relate to refunds of excess tax), other than an amount affected by a restriction under section OB 72B(5); or (b) (c) the total refundable amount, if there is no credit balance in the company’s imputation credit account at the time; or the excess of the total refundable amount over the credit balance in the company’s imputation credit account at the time, if paragraph (b) does not apply.
Due date The imputation additional tax must be paid to the Commis- sioner no later than the 20th day of the month following the month in which the company stops being part of the former group.

Joint liability The company and all companies in the new group are jointly liable for the imputation additional tax.

A payment of imput- ation additional tax does not satisfy any other liability of the company or the new group.
Payment by excess tax For a liability under subsections (3) and (5), the company or another company in the new group may choose to satisfy the liability by applying an excess tax payment in discharging it.
Deﬁned in this Act: amount, Commissioner, company, excess tax payment, ICA company, imputation additional tax, imputation credit account, imputation debit, income tax liability, income year, pay, provisional tax, tax loss, tax pool- ing account, tax year, wholly-owned group of companies Compare: 2004 No 35 s ME 9C Section OB 72(1)(a): amended (with effect on 1 March 2010), on 7 September 2010, by section 101(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(5): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
(7) (8) (9) 2288 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 72B Section OB 72(5B) heading: inserted (with effect on 1 March 2010), on 7 Sep- tember 2010, by section 101(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(5B): inserted (with effect on 1 March 2010), on 7 September 2010, by section 101(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 72(6)(a): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OB 72(6)(b): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section OB 72(6)(c): substituted (with effect on 1 March 2010), on 7 September 2010, by section 101(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OB 72B Limit on using entitlement to refund after joining wholly-owned group (1) (2) (3) When this section applies This section applies when— (a) an ICA company joins a wholly-owned group of com- panies (the new group) from another wholly-owned group of companies (the former group); and the ICA company is not liable for imputation additional tax under section OB 72(5).
(b) Restricted refund amount for company and new group Subsections (3) to (8) apply to an amount (the restricted re- fund amount) for the ICA company and the new group that is greater than zero and calculated using the formula— refund amount – ICA credit balance.
Deﬁnition of items in formula In the formula,— (a) refund amount is the total of the following amounts, determined immediately before the ICA company joins the new group: (i) the amount in the tax pooling account provided by or for the beneﬁt of the ICA company that is more than the company’s liability to pay income tax or provisional tax at the time: 2289 Part O s OB 72B Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) the amount of the refund to which the ICA com- pany is entitled under sections RM 2 and RM 4 to RM 6 (which relate to refunds of excess tax) other than an amount affected by a restriction under subsection (5) for the company and another group: (b) ICA credit balance is the credit balance of the ICA company’s imputation credit account immediately be- fore the company joins the new group.
Payment to Commissioner If the restricted refund amount is greater than the amount re- ferred to in subsection (3)(a)(ii), the ICA company must pay to the Commissioner an amount equal to the excess and the Com- missioner must hold the amount with the balance of the re- stricted refund amount as if the excess were a refund to which the company were entitled under section RM 2 (Refunds for overpaid tax).
Use of restricted refund amount The Commissioner must hold the restricted refund amount for the ICA company and the new group subject to the restriction that the amount— (a) may be refunded for an imputation credit only if the ICA company satisﬁes the Commissioner that the credit— (i) (ii) arises from taxation paid by the ICA company or by a company that is in the same wholly-owned group as the ICA company and was in the for- mer group immediately before the ICA company joined the new group: is attached to a dividend received in relation to a shareholding by the ICA company or by a com- pany that is in the same wholly-owned group as the ICA company and was in the former group immediately before the ICA company joined the new group and had the shareholding then; and (b) may be used to satisfy a tax liability of— (i) (ii) the ICA company: a company that is in the same wholly-owned group as the ICA company (the member), if the ICA company satisﬁes the Commissioner that (4) (5) 2290 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 72B (6) (7) (8) the member was in the former group immedi- ately before the ICA company joined the new group.
Restriction additional to other requirements The restriction imposed by subsection (5) on the use of a re- stricted refund amount is in addition to the requirements under other provisions of the Act for a refund or the satisfaction of a tax liability from an amount to which the ICA company is entitled under sections RM 2 and RM 4 to RM 6.
Reducing restricted refund amount The restricted refund amount for the ICA company and a group is reduced by the amount of— (a) a refund permitted under subsection (5)(a) relating to the restricted refund amount: a satisfaction of a tax liability permitted by subsection (5)(b) relating to the restricted refund amount: a payment of imputation additional tax under subsection (8) relating to the restricted refund amount: a payment of imputation additional tax under section OB 71(4) relating to the restricted refund amount.
(b) (c) (d) Liability for imputation additional tax The ICA company is liable for an amount of imputation ad- ditional tax equal to the restricted refund amount for the com- pany and a wholly-owned group of companies (the old group) determined immediately after a change in the holding of voting interests in the ICA company if, immediately after the change, a group of people hold common voting interests in the ICA company that exceed, by 67% or more, the common voting interests— (a) in the wholly-owned group of companies to which the company belonged immediately before the company joined the old group; and that were held by the same people immediately before the company joined the old group.
(b) Deﬁned in this Act: Commissioner, common voting interest, company, divi- dend, ICA company, imputation additional tax, imputation credit, income tax, provisional tax, tax pooling account, wholly-owned group of companies 2291 Part O s OB 73 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OB 72B: inserted (with effect on 1 March 2010), on 7 September 2010, by section 102 of the Taxation (Annual Rates, Trans-Tasman Savings Portabil- ity, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Distributions of statutory producer boards and co-operative companies OB 73 Statutory producer boards attaching imputation credits to cash distributions Election (1) On meeting the requirements of subsection (2), a statutory pro- ducer board that is an ICA company may choose, for an in- come year, to attach an imputation credit to a cash distribution paid to a member of the producer board.
(2) (3) Requirements The producer board may make an election under subsection (1) if— (a) the distribution is made to all persons who were mem- bers of the board at a time in the income year; and the board proposes to pay the distribution based on 1 of the factors set out in subsection (3); and the board would, in the absence of this section, have a deduction for some or all of the distribution, whether as an association rebate under subpart HE (Mutual associ- ations) or under some other provision of this Act.
(b) (c) Methods The amount of the distribution must be based on 1 of the fol- lowing methods of determination, as applicable, for an income year: (a) all payments for a member’s produce transactions dur- ing the income year as a proportion of total payments for all members’ produce transactions during the income year; or all levies payable by a member for the income year as a proportion of total levies payable by members for the income year; or another method of determination approved by the Com- missioner.
(b) (c) 2292 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 73 (4) (5) (6) (7) (8) Total credits attached The total amount of imputation credit attached to the distribu- tion is calculated using the formula— total net dividend × 1 tax rate tax rate.
Deﬁnition of items in formula In the formula in subsection (4),— (a) (b) total net dividend is the total amount of the distribution excluding the amount of imputation credit: tax rate is the basic rate of income tax set out in sched- income tax, ule 1, part A, clause 2 (Basic tax rates: ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the income year.
Member’s credits The amount of a member’s share of an imputation credit at- tached under subsection (4) is calculated using the formula— member’s distribution total distribution × total imputation credit attached.
Deﬁnition of items in formula In the formula in subsection (6),— (a) member’s distribution is the amount of the member’s share of the distribution excluding the amount of imput- ation credit: total distribution is the amount of the total distribution paid excluding the amount of imputation credit: total imputation credit attached is total amount of im- putation credit attached to the distribution calculated under subsection (4).
(b) (c) When producer board chooses not to have deduction If a producer board chooses to treat a distribution as a dividend, it is denied a deduction for the amount of the distribution under section DV 18 (Statutory producer boards and co-operative companies).

2293 Part O s OB 74 Income Tax Act 2007 Reprinted as at 29 May 2012 (9) Relationship with section OZ 15 Section OZ 15 (Attaching imputation credits and notional dis- tributions: modifying amounts) may apply to modify subsec- tion (4).
Deﬁned in this Act: amount, association rebate, basic rate, Commissioner, de- duction, dividend, ICA company, imputation credit, income tax, income year, levy, member, pay, produce transactions, statutory producer board Compare: 2004 No 35 ss ME 30, ME 31 Section OB 73(5)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 73(9) heading: added, on 1 April 2008, by section 500 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 73(9): added, on 1 April 2008, by section 500 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 74 Statutory producer boards attaching imputation credits to notional distributions Election (1) A statutory producer board that is an ICA company may choose, for an income year, to attach an imputation credit to a notional distribution, as a result of which a member derives a dividend of an amount calculated under section OB 75(2).

Subsections (2) and (8) override this subsection.


All members (2) A statutory producer board may make an election under sub- section (1) only if the distribution is made to all persons who were members of the producer board at a time in the income year.
Methods The producer board may determine that the amount of an im- putation credit attached to a notional distribution is based on— produce transactions, and calculated under subsection (a) (5) for each member; or (b) members’ levies, and calculated under subsection (7) (c) (d) for each member; or a combination of paragraphs (a) and (b); or some other method of determination approved by the Commissioner.
(3) 2294 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 74 (4) (5) Produce transactions The amount of an imputation credit attached to a member’s distribution that is based on produce transactions is calculated using the formula— member’s payment total payments × credit attached.
Deﬁnition of items in formula In the formula in subsection (4),— (a) member’s payments is the total amount of all pay- ments to or by a member for the member’s produce transactions during the income year: total payments is all payments to or by all members for produce transactions during the income year: credit attached is the amount of imputation credit at- tached to the distribution.
(b) (c) Members’ levies (6) An imputation credit attached to a member’s distribution that is based on members’ levies is calculated using the formula— member’s levies total levies × credit attached.
(7) (8) Deﬁnition of items in formula In the formula in subsection (6),— (a) member’s levies is the total amount of all levies payable by a member to the producer board for the income year: total levies is total amount of all levies payable by all members to the producer board for the income year: credit attached is the amount of imputation credit at- tached to the distribution.
(b) (c) Commissioner’s determination The Commissioner may apply subsections (4) to (7) to deter- mine the amount of the imputation credit to be treated as at- tached to a member’s distribution if the Commissioner con- siders that the producer board’s application of subsections (3) to (7) does not result in a fair and reasonable allocation of an amount of imputation credit to a member having regard to— (a) the produce transactions of the producer board; and 2295 Part O s OB 75 Income Tax Act 2007 Reprinted as at 29 May 2012 the levies payable to the producer board; and any other relevant factor.
(b) (c) Deﬁned in this Act: amount, Commissioner, dividend, ICA company, imput- ation credit, income year, levy, member, pay, produce transactions, statutory producer board Compare: 2004 No 35 s ME 32 OB 75 Statutory producer boards’ notional distributions that are dividends Dividend derived (1) A notional distribution to which section OB 74 applies that has an imputation credit attached is a dividend under section CD 13 (Notional distributions of producer boards and co-op- erative companies) derived by a member.
Calculation of amount The amount of the dividend is calculated using the formula— (2) credit attached tax rate credit attached.

(3) (4) (5) Deﬁnitions of items in formula In the formula,— (a) (b) credit attached is the amount of imputation credit at- tached to the member’s distribution: tax rate is the basic rate of income tax for companies set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the income year.
When derived The member derives the dividend on the date the statutory pro- ducer board chooses under section OB 74 to make a notional distribution.
Returns and information For the purposes of this section, the producer board must— (a) include the details of the dividend with the return of in- come ﬁled for the tax year corresponding to the income year in relation to which the distribution was made; and retain relevant information to enable the Commissioner to determine whether a later distribution is not a divi- (b) 2296 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 76 (6) dend under section CD 26(3) or CD 33(1) (which relate to capital distributions on liquidation or emigration and payments that correspond to notional distributions).
Relationship with section OZ 15 Section OZ 15 (Attaching imputation credits and notional dis- tributions: modifying amounts) may apply to modify subsec- tion (2).
Deﬁned in this Act: amount, basic rate, Commissioner, company, dividend, imputation credit, income tax, income year, member, pay, return of income, statutory producer board, tax year Compare: 2004 No 35 s ME 33 Section OB 75(3)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 75(6) heading: added, on 1 April 2008, by section 501 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 75(6): added, on 1 April 2008, by section 501 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

OB 76 Statutory producer boards attaching FDP credits FDP credits attached (1) A statutory producer board that is an FDPA company may choose, for an income year, to attach an FDP credit to a cash distribution or a notional distribution.

An FDP credit may be attached in conjunction with an imputation credit.
(2) Application of provisions Sections OB 73 to OB 75and OB 77 apply, modiﬁed as ne- cessary, to the producer board, the distribution, and the FDP credit.

Both credits at once (3) A producer board may choose to attach both an imputation credit and an FDP credit as part of 1 distribution.
Deﬁned in this Act: FDP credit, FDPA company, imputation credit, income year, statutory producer board Compare: 2004 No 35 s ME 34 2297 Part O s OB 77 Income Tax Act 2007 Reprinted as at 29 May 2012 OB 77 When and how statutory producer board makes election Timing of election (1) A statutory producer board may make an election under sec- tion OB 73, OB 74, or OB 76 in relation to a distribution either— (a) after the income year in relation to which the distribu- tion is made; but no later than 6 months after the end of the income year in relation to which the distribution is made.
(b) Notice (2) A producer board must notify the Commissioner of an election referred to in subsection (1) no later than the time allowed for the statutory producer board to ﬁle a return of income for the tax year corresponding to the income year in relation to which the distribution is made.
Deﬁned in this Act: Commissioner, dividend, income year, return of income, statutory producer board, tax year Compare: 2004 No 35 s ME 30(3), (4) OB 78 Co-operative companies attaching imputation credits to cash distributions Election (1) On meeting the requirements of subsection (2), a co-operative company that is an ICA company may choose, for an income year, to attach an imputation credit to a cash distribution paid to the company’s shareholders.
Requirements (2) A co-operative company may make an election under subsec- tion (1) if— (a) the distribution is made to all persons who were share- holders of the company at a time during the income year; and the distribution is based on the proportion for the in- come year in which the payments to or by a shareholder for their produce transactions are of total payments to or by all shareholders for all produce transactions; and the company would, in the absence of this section, have a deduction for some or all of the distribution, whether (b) (c) 2298 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 78 (3) (4) (5) (6) as an association rebate under subpart HE (Mutual as- sociations) or some other provision of this Act; and no other election for a cash distribution is made for the income year.
(d) Total credit attached The total amount of imputation credit attached to the distribu- tion is calculated using the formula— total net dividend × 1 tax rate tax rate.
Deﬁnition of items in formula In the formula in subsection (3),— (a) (b) total net dividend is the total amount of the distribution excluding the amount of imputation credit: tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the income year.
Shareholder’s credit The amount of a shareholder’s share of the imputation credit attached as described in subsection (3) is calculated using the formula— shareholder’s distribution total distribution × total imputation credit attached.
Deﬁnition of items in formula In the formula in subsection (5),— (a) shareholder’s distribution is the amount that is the shareholder’s share of the distribution, excluding the amount of imputation credit: total distribution is the amount of the total distribution paid, excluding the amount of imputation credit: total imputation credit attached is the total amount of imputation credit attached to the distribution calculated under subsection (3).
(b) (c) (7) When co-operative company chooses not to have deduction If a co-operative company chooses to treat a distribution as a dividend, it is denied a deduction under section DV 18 (Statu- 2299 Part O s OB 79 Income Tax Act 2007 Reprinted as at 29 May 2012 (8) tory producer boards and co-operative companies).

The com- pany must notify the Commissioner of an election under this subsection under section OB 82(3) for the election to be ef- fective.
Relationship with section OZ 15 Section OZ 15 (Attaching imputation credits and notional dis- tributions: modifying amounts) may apply to modify subsec- tion (3).
Deﬁned in this Act: amount, association rebate, basic rate, Commissioner, co-operative company, deduction, dividend, ICA company, imputation credit, income tax, income year, notify, pay, produce transactions, shareholder Compare: 2004 No 35 ss ME 35, ME 36 Section OB 78(4)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 78(8) heading: added, on 1 April 2008, by section 502 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 78(8): added, on 1 April 2008, by section 502 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OB 78 list of deﬁned terms Maori Authority: repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OB 79 Co-operative companies attaching imputation credits to notional distributions Election (1) On meeting the requirements of subsection (2), a co-operative company that is an ICA company may choose, for an income year, to attach an imputation credit to a notional distribution, as a result of which a member derives a dividend of an amount calculated under section OB 80.
Requirements (2) A co-operative company may make an election under subsec- tion (1) if— (a) the distribution is made to all persons who were share- holders of the company at a time during the income year; and no other election to pay a notional distribution is made for the income year.
(b) 2300 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 80 (3) (4) Shareholder’s credits The amount of a shareholder’s share of an imputation credit attached to a notional distribution is calculated using the for- mula— produce payments total payments × credit attached.
Deﬁnition of items in formula In the formula,— (a) produce payments is the amount of all payments to or by the shareholder for the shareholder’s produce trans- actions during the income year: total payments is the amount of all payments to or by shareholders for produce transactions during the in- come year: credit attached is the amount of imputation credit at- tached to the distribution.
(b) (c) Deﬁned in this Act: amount, co-operative company, dividend, ICA company, imputation credit, income year, member, pay, produce transactions, shareholder Compare: 2004 No 35 s ME 37 OB 80 Co-operative companies’ notional distributions that are dividends Dividends (1) A notional distribution referred to in section OB 79 that has an imputation credit attached is a dividend under section CD 13 (Notional distributions of producer boards and co-operative companies) derived by a shareholder of the co-operative com- pany.
(2) (3) Amount The amount of a shareholder’s dividend is calculated using the formula— credit attached tax rate credit attached.
Deﬁnition of items in formula In the formula,— (a) credit attached is the amount of imputation credit at- tached to the shareholder’s distribution: 2301 Part O s OB 81 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) (5) (b) tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the income year.
When derived The shareholder derives the dividend on the date the co-opera- tive company chooses under section OB 79 to make a notional distribution.

Relationship with section OZ 15 Section OZ 15 (Attaching imputation credits and notional dis- tributions: modifying amounts) may apply to modify subsec- tion (2).
Deﬁned in this Act: amount, basic rate, co-operative company, dividend, im- putation credit, income tax, income year, shareholder Compare: 2004 No 35 s ME 38 Section OB 80(2) formula: substituted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), by section 114(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OB 80(3)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 80(5) heading: added, on 1 April 2008, by section 503 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OB 80(5): added, on 1 April 2008, by section 503 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
OB 81 Co-operative companies attaching FDP credits Election (1) A co-operative company that is an FDPA company may choose, for an income year, to attach an FDP credit to a cash distribution.

The FDP credit may be attached in conjunction with an imputation credit.

(2) Application of provisions Sections OB 78 to OB 80 and section 64 of the Tax Admin- istration Act 1994 apply, modiﬁed as necessary, to the co-op- erative company, the distribution, and the FDP credit.
2302 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 82 Both credits at once (3) A co-operative company may choose to attach both an imput- ation credit and an FDP credit as part of 1 distribution.
Deﬁned in this Act: co-operative company, FDP credit, FDPA company, im- putation credit, income year Compare: 2004 No 35 s ME 39 OB 82 When and how co-operative company makes election One a year (1) A co-operative company may make an election under section OB 78, OB 79, or OB 81 in relation to a distribution for— (a) (b) only 1 cash distribution during the income year: only 1 notional distribution during the income year.
Timing (2) A co-operative company may make an election referred to in subsection (1)— (a) after the income year in relation to which the distribu- tion is made; but no later than 6 months after the end of the income year in relation to which the distribution is made.
(b) Notice (3) A co-operative company must notify the Commissioner of an election referred to in subsection (1)(a) no later than the time allowed for the company to ﬁle a return of income for the tax year corresponding to the income year in relation to which the distribution is made.
Deﬁned in this Act: Commissioner, co-operative company, income year, notify, return of income, tax year Compare: 2004 No 35 s ME 35 2303 Part O s OB 82 Income Tax Act 2007 Reprinted as at 29 May 2012 Tables of credits and debits in memorandum accounts How to use these tables Each row of a table describes— (a) the credits or debits that may arise in a memorandum account during a tax year; and the credit date or debit date when the credit or debit arises.
(b) A more detailed description of the credits or debits is contained in the section noted in the last column.
Table O1: imputation credits Row Imputation credit Credit date Further deﬁned 5B 5C 6 7 7B 8 9 10 11 Opening credit balance 1 April section OA 7 Provisional tax and income tax paid day of payment section OB 4 Deposit into tax pooling account day of payment section OB 5 Transfer from tax pooling account day of credit section OB 6 Payment of further income tax day of payment section OB 7 Payment of qualifying company election tax Tax credit for research and development expenditure Amount of tax withheld for resident passive income day of payment section OB 7B day return ﬁled section OB 7C day on which amount is withheld section OB 8 Imputation credit attached to dividend derived day on which dividend is paid section OB 9 Attributed PIE income with imputation credit day of attribution section OB 9B FDP credit attached to dividend derived when not FDPA company day on which dividend is paid section OB 10 [Repealed] Transfer from FDP account day of payment section OB 12 Transfer of debt balance when company leaves wholly-owned group day on which company leaves group section OB 13 2304 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 82 Row Imputation credit Credit date Further deﬁned 26 27 Additional income tax payable when company leaves wholly-owned group Additional income tax when company joins wholly-owned group Attribution for personal services if company is not qualifying company [Repealed] day of payment section OB 14 day of payment section OB 15 31 March section OB 16 Transfer from ASC account day of transfer section OB 18 Transfer to master fund by company day of transfer section OB 19 Maori authority credit attached to distribution day of distribution section OB 20 Transfer of balance of Maori authority credit account Replacement payment paid under share-lending arrangement day of transfer section OB 21 day of payment section OB 22 Imputation credit shown in credit transfer notice day on which notice is given section OB 23 Imputation credit, FDP
 credit, or policyholder credit on resident’s restricted amalgamation credit date in account of amalgamating company section OB 24 Reversal of debt for tax advantage arrangement Eliminating debit for loss of shareholder continuity cancelling tax pooling account deposit that is refunded or credited Amount of tax withheld by Australian ICA company for non-resident passive income Amount of tax withheld from schedular payment to Australian ICA company Schedular income tax paid by Australian ICA company debit date of debit section OB 25 day of refund or credit section OB 26 day on which amount is withheld day on which amount is withheld section OB 27 section OB 28 day of payment section OB 29 Table O1 row 5B: inserted, on 1 April 2008, by section 497 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
2305 Part O s OB 82 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O1 row 5C: inserted, on 1 April 2008, by section 497 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Table O1 row 7B: substituted (with effect on 1 April 2009), on 6 October 2009, by section 399(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O1 row 9: repealed (with effect on 30 June 2009), on 6 October 2009, by section 399(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O1 row 14: amended (with effect on 1 April 2008), on 6 October 2009, by section 399(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O1 row 15: repealed, on 1 July 2010, by section 399(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table 02: imputation debits Row Imputation debit Debit date Further deﬁned 7B 8 9 10 11 Opening debt balance 1 April section OA 7 Imputation credit attached to dividend paid Allocation of provisional tax day of payment section OB 30 day of notice of allocation section OB 31 Refund of income tax day of refund section OB 32 Overpaid income tax applied to meet another tax liability day of application section OB 33 Refund from tax pooling account day of refund section OB 34 Transfer of entitlement to another person in tax pooling account set out in section OB 35 section OB 35 Debit for transfer from tax pooling account for policyholder base liability Refund of FDP when not FDPA company 31 March section OB 35B day of refund section OB 36 Transfer, refund, or use of tax credit day of transfer, refund, or use section OB 37 Overpaid FDP applied to satisfy liability when not FDPA company Overpaid income tax or FDP applied to satisfy pre-imputation income tax when not FDPA company day of application section OB 38 day of application section OZ 3 2306 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 82 Row Imputation debit Debit date Further deﬁned 26 27 [Repealed] Attribution for personal services 31 March section OB 40 Debit for loss of shareholder continuity time of loss of continuity section OB 41 Debit for on-market cancellation day of acquisition section OB 42 Debit for breach of imputation ratio 31 March section OB 43 Transfer for debit balance when company leaves wholly-owned group day on which company leaves group Redemption debit for unit trust or group investment fund for income year day on which return of income for income year is ﬁled section OB 44 section OB 45 Transfer from member fund to master fund Debit for policyholder base imputation credits 31 March section OB 46 31 March section OB 47 Credit balance when Maori authority credit account starts day of becoming Maori authority section OB 48 Credit attached to replacement payment paid by
 company under share-lending arrangement Credit attached to dividend paid to company shown in returning share transfer Credit attached to dividend paid to company shown in credit transfer notice Credit that is also credit to imputation credit account of consolidated imputation group Imputation debit, FDP debit, or policyholder debit in account of amalgamating company Debit for tax advantage arrangement day of payment section OB 49 day of payment section OB 50 day of payment section OB 51 credit date for imputation credit section OB 52 section OB 53 section OB 54 debit date in account of amalgamating company last day of tax year in which arrangement began 2307 Part O s OB 82 Income Tax Act 2007 Row Imputation debit Debit date Reprinted as at 29 May 2012 Further deﬁned section OB 55 28 29 30 31 32 Retrospective attachment of imputation credit to non-cash dividend day of payment of dividend Final balance when ICA company status ends day of cessation section OB 56 Refund of amount of tax for non-resident passive income to Australian ICA company Refund of amount of tax for schedular payment to Australian ICA company Refund of schedular income tax to Australian ICA company day of refund section OB 57 day of refund section OB 58 day of refund section OB 59 Table O2 row 7B: inserted, on 1 July 2010, by section 400(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O2 row 9: substituted (with effect on 1 April 2008), on 6 October 2009, by section 400(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O2 row 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 400(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O2 row 14: amended (with effect on 1 April 2008), on 7 December 2009, by section 88 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Table O2 row 20: substituted, on 1 July 2010, by section 400(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2308 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OB 82 Subpart OC—Foreign dividend payment accounts (FDPA) Contents Introductory provisions FDP accounts OC 1 General rules for companies with FDP accounts OC 2 OC 2B General rule for life insurer’s policyholder base OC 3 Choosing to become FDPA company OC 4 When company chooses to stop being FDPA company OC 5 When company emigrates OC 6 OC 7 OC 8 FDP credits FDPA payment of FDP [Repealed] FDPA dividend derived with FDP credit FDPA payment of FDP for transfer from CTR account [Repealed] FDPA transfer for net foreign attributed income [Repealed] OC 9 OC 10 FDPA payment of FDP for conduit debit balance [Repealed] OC 11 FDPA credit transfer to company OC 12 FDPA reversal of tax advantage arrangement FDP debits OC 13 FDPA payment of dividend OC 14 FDPA refund of FDP OC 15 FDPA overpayment of FDP OC 16 FDPA refund of tax credit OC 17 FDPA credit transfer by company OC 18 FDPA transfer to imputation credit account OC 19 FDPA transfer to CTR account [Repealed] OC 20 Debit for policyholder base FDP credits OC 21 FDPA transfer to group account OC 22 FDPA breach of FDP ratio OC 23 FDPA breach of FDP ratio by PCA company [Repealed] OC 24 FDPA debit for loss of shareholder continuity OC 25 FDPA tax advantage arrangement OC 26 FDPA ﬁnal balance FDP credits attached to dividends OC 27 FDP credits attached to dividends OC 28 FDPA benchmark dividend rules Page Part O s OC 1 Income Tax Act 2007 Reprinted as at 29 May 2012 OC 29 FDP credits and imputation credits attached to dividends 2327 Further income tax OC 30 Payment of further income tax for closing debit balance OC 31 Payment of further income tax when company no longer New Zealand resident OC 32 Reduction of further income tax OC 33 Income tax paid satisfying liability for further income tax OC 34 Further income tax paid satisfying liability for income tax Some
 deﬁnitions [Repealed] OC 35 Meaning of FDP reference period [Repealed] OC 36 Meaning of maximum deﬁcit debit [Repealed] OC 37 Meaning of policyholder FDP ratio [Repealed] OC 38 Meaning of reduced deﬁcit debit [Repealed] OC 39 Meaning of shareholder FDP ratio [Repealed] 2328 2329 2331 2332 2332 2333 2333 2333 2333 2334 Introductory provisions OC 1 General rules for companies with FDP accounts FDPA company (1) A company resident in New Zealand may choose to become a foreign dividend payment account (FDPA) company.
This subsection does not apply to a multi-rate PIE.

FDP accounts (2) An FDPA company must maintain a foreign dividend payment (FDP) account for a tax year.

The account is a record of FDP credits and FDP debits that arise in the account during the tax year.

(3) Main credit [Repealed] [Repealed] Main debit (4) An FDPA company has an FDP debit for the amount of an FDP credit attached to a dividend paid to the company’s sharehold- ers.
2310 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 1 (5) Treatment of FDP credit by shareholder The amount of an FDP credit attached to a dividend derived by a shareholder is included in the amount of the dividend under section CD 15 (Tax credits linked to dividends).
Refunds (6) When a dividend with an FDP credit attached is derived by a non-resident or by a person who is resident and the dividend is exempt income of the person, they are entitled to a refund under section LF 8 (Credits for persons who are non-resident or who receive exempt income).
(7) (8) Shareholder continuity requirements The carrying forward of a credit in a company’s FDP account is subject to the shareholder continuity requirements of section OA 8 (Shareholder continuity requirements for memorandum accounts).

Imputation credits If a company does not choose to become an FDPA company, a payment of FDP on a dividend derived from a non-resident company is accounted for under the imputation rules under section OB 11 (ICA payment of FDP).
Deﬁned in this Act: amount, assessable income, company, dividend, exempt in- come, FDP account, FDP credit, FDP debit, FDPA company, imputation rules, income, multi-rate PIE, non-resident company, pay, resident in New Zealand, shareholder, tax year Compare: 2004 No 35 ss CD 9, LD 9, ME 4(1)(e), (f), MG 2(1), (3), MG 4(1)(a), (b), MG 5(3) Section OC 1(1): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 401(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 1(3) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 401(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 1(3): repealed (with effect on 30 June 2009), on 6 October 2009, by section 401(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 1 list of deﬁned terms multi-rate PIE: inserted, on 1 April 2010, by section 401(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 1 list of deﬁned terms portfolio tax rate entity: repealed, on 1 April 2010, by section 401(3)(a) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
2311 Part O s OC 2 Income Tax Act 2007 Reprinted as at 29 May 2012 OC 2 FDP accounts (1) General rules apply The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to the FDP account of an FDPA company.

Consolidated groups (2) Under section OP 54 (When credits and debits arise only in consolidated FDP group accounts), certain credits and debits do not arise in the account if the company is part of a consoli- dated group.
Deﬁned in this Act: consolidated group, FDP account, FDPA company, memo- randum account Compare: 2004 No 35 s MG 16(1), (4) OC 2B General rule for life insurer’s policyholder base An FDP credit does not arise in relation to a life insurer’s pol- icyholder base.

Similarly, an FDP debit does not arise in rela- tion to a life insurer’s policyholder base.
Deﬁned in this Act: FDP credit, FDP debit, life insurer, policyholder base Section OC 2B: inserted, on 1 July 2010, by section 402(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OC 3 Choosing to become FDPA company Election (1) A company that chooses to become an FDPA company must notify the Commissioner of the election no later than 21 days after the date of the election or by a later date if the Commis- sioner allows.
Effect of election (2) An FDPA company must maintain the FDP account referred to in section OC 1(2) from the date of election.

Deﬁned in this Act: Commissioner, company, FDP account, FDPA company, notify Compare: 2004 No 35 s MG 2(2), (3) 2312 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 5 OC 4 When company chooses to stop being FDPA company Election (1) An FDPA company may choose to stop being an FDPA com- pany.
When election made (2) An FDPA company may make an election under subsection (1) only in a tax year that is later than the tax year in which the company chooses under section OC 3 to become an FDPA company.
(3) When company’s status ends The company ends its status as an FDPA company from the ﬁrst day of the tax year after the tax year in which the election referred to in subsection (2) is made but only if the company— ﬁles an annual FDPA return for the year of election in (a) the time allowed by section 71 of the Tax Administra- tion Act 1994; and pays any further income tax payable under section OC 30 or OC 31 for the year of election.
(b) Deﬁned in this Act: amount, annual FDPA return, FDP, FDPA company, further FDP, pay, tax year Compare: 2004 No 35 s MG 2(4), (5) Section OC 4(3)(b): substituted (with effect on 30 June 2009), on 6 October 2009, by section 403(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 5 When company emigrates (1) (2) Status ends If an emigrating company is an FDPA company immediately before the time of emigration, its status as an FDPA company ends at the time of emigration.

Further payments and returns The company referred to in subsection (1) must— (a) ﬁle an annual FDPA return for the tax year in which the company becomes non-resident; and pays any further income tax payable under sections OC 30 to OC 34 for the tax year.
(b) Deﬁned in this Act: annual FDPA return, emigrating company, FDPA company, further FDP, non-resident, pay, tax year, time of emigration Compare: 2004 No 35 s MG 2(6), (7) 2313 Part O s OC 6 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OC 5(2)(b): substituted (with effect on 30 June 2009), on 6 October 2009, by section 404(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 6 FDPA payment of FDP FDP credits [Repealed] Section OC 6: repealed (with effect on 30 June 2009), on 6 October 2009, by section 405(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

OC 7 FDPA dividend derived with FDP credit Credit (1) An FDPA company has an FDP credit for the amount of an FDP credit attached to a dividend derived by the company.
(2) (3) Table reference The FDP credit in subsection (1) is referred to in table O3: FDP credits, row 4 (dividend derived with FDP credit).

Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, dividend, FDP credit, FDPA company, pay Compare: 2004 No 35 s MG 4(1)(b), (2)(b) OC 8 FDPA payment of FDP for transfer from CTR account [Repealed] Section OC 8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 406(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
OC 9 FDPA transfer for net foreign attributed income [Repealed] Section OC 9: repealed (with effect on 30 June 2009), on 6 October 2009, by section 407(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
OC 10 FDPA payment of FDP for conduit debit balance [Repealed] Section OC 10: repealed (with effect on 30 June 2009), on 6 October 2009, by section 408(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2314 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 12 OC 11 FDPA credit transfer to company Credit (1) An FDPA company has an FDP credit for the amount of a credit shown in a credit transfer notice given to the company.
(2) (3) Table reference The FDP credit in subsection (1) is referred to in table O3: FDP credits, row 8 (credit transfer).

Credit date The credit date is the day the notice is given.
Deﬁned in this Act: amount, credit transfer notice, FDP credit, FDPA company Compare: 2004 No 35 s MG 4(1)(bd), (2)(bd) OC 12 FDPA reversal of tax advantage arrangement (1) (2) (3) (4) When this section applies This section applies when it is established that an FDP credit in an FDPA company’s FDP account was incorrectly determined to be the subject of an arrangement to obtain a tax advantage.
Credit The company has an FDP credit for an amount equal to the amount of a debit in the company’s FDP account under section OC 25.

Table references The FDP credit in subsection (2) is referred to in table O3: FDP credits, row 9 (reversal of tax advantage arrangement).

The FDP debit in subsection (2) is referred to in table O4: FDP debits, row 14 (tax advantage arrangement).

Credit date The credit date is the same as the debit date recorded for the debit.
Deﬁned in this Act: amount, FDP account, FDP credit, FDPA company, tax advantage Compare: 2004 No 35 s MG 4(1)(d), (2)(d) 2315 Part O s OC 13 Income Tax Act 2007 Reprinted as at 29 May 2012 FDP debits OC 13 FDPA payment of dividend Debit (1) An FDPA company has an FDP debit for the amount of an FDP credit attached to a dividend paid by the company.

(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 2 (payment of dividend).
Debit date The debit date is the day the dividend is paid.

Deﬁned in this Act: amount, dividend, FDP credit, FDP debit, FDPA company, pay Compare: 2004 No 35 s MG 5(1)(a), (2)(a) OC 14 FDPA refund of FDP Debit (1) An FDPA company has an FDP debit for the amount of a re- fund of FDP paid to the company.

Subsection (3) overrides this subsection.

Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 3 (refund of FDP).
No debit The company does not have a debit for the amount of a refund to the extent to which it refunds FDP paid before a debit arises under section OC 24 (table O4: FDP debits, row 13 (debit for loss of shareholder continuity)).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, FDP, FDP account, FDP debit, FDPA company, pay Compare: 2004 No 35 s MG 5(1)(d), (2)(d) Section OC 14(3): replaced (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 95(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
(2) (3) (4) 2316 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 16 OC 15 FDPA overpayment of FDP Debit (1) An FDPA company has an FDP debit for the amount of an overpayment of FDP that is applied to pay an amount due under the Inland Revenue Acts.

Subsection (3) overrides this subsection.

(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 4 (overpayment of FDP).
No debit The company does not have a debit for the amount of an over- payment of FDP— (a) (b) that is applied to satisfy a liability for FDP; or that— (i) relates to a payment of FDP before an FDP debit arises under section OC 24 (table O4: FDP debits, row 13 (debit for loss of shareholder continuity)); and is no more than the debit for loss of shareholder continuity.

(ii) (4) Debit date The debit date is the day the amount is applied.
Deﬁned in this Act: amount, FDP, FDP debit, FDPA company, Inland Revenue Acts, pay, shareholder Compare: 2004 No 35 s MG 5(1)(k), (2)(i) OC 16 FDPA refund of tax credit Debit (1) An FDPA company has an FDP debit for the amount of a trans- fer or refund to the company under section LA 6(2)(d) or (e) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the amount transferred or re- funded is a tax credit under subpart LF (Tax credits for FDP credits).
(2) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 5 (refund of tax credit).

2317 Part O s OC 17 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Debit date The debit date is the day the transfer or refund is made.
Deﬁned in this Act: amount, FDP debit, FDPA company Compare: 2004 No 35 s MG 5(1)(e), (2)(d) Section OC 16(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 409(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 16(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 409(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 17 FDPA credit transfer by company Debit (1) An FDPA company has an FDP debit for the amount of an FDP credit attached to a dividend paid by the company and shown in a credit transfer notice given by the company.

(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 6 (credit transfer).

Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, credit transfer notice, dividend, FDP credit, FDP debit, FDPA company, pay Compare: 2004 No 35 s MG 5(1)(ab), (2)(ab) OC 18 FDPA transfer to imputation credit account Election (1) An FDPA company may choose for a tax year to transfer some or all of a closing credit balance in the company’s FDP account to the imputation credit account of— (a) (b) the company; or an imputation group of which the company is part.
Debit and credit The amount transferred is— (a) (b) an FDP debit in the company’s FDP account; and an imputation credit under, as applicable,— (i) section OB 12 (ICA transfer from FDP account) in the company’s imputation credit account; or (2) 2318 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 18 (ii) section OP 18 (Consolidated ICA transfer from group company’s FDP account) in the imput- ation credit account of the consolidated imput- ation group.
(3) (4) (5) (6) Table references The table references are as follows: (a) (b) (c) the FDP debit in subsection (2)(a) is referred to in table O4: FDP debits, row 7 (transfer to imputation credit account): the imputation credit in subsection (2)(b)(i) is referred to in table O1: imputation credits, row 10 (transfer from FDP account): the imputation credit in subsection (2)(b)(ii) is referred to in table O19: imputation credits of consolidated imputation groups, row 13 (transfer from group com- pany’s FDP account).
Method of election The company makes the election by recording the credit bal- ance transferred as— (a) (b) a debit in the company’s FDP account; and a credit in the imputation credit account of— (i) (ii) the company; or the imputation group.

CTR companies [Repealed] [Repealed] Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, consolidated imputation group, FDP, FDP account, FDP debit, FDPA company, imputation credit, imputation credit account, im- putation group, tax year Compare: 2004 No 35 ss MG 5(1)(c), (2)(c), MG 11 Section OC 18(5) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 96(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OC 18(5): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 96(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2319 Part O s OC 19 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OC 18 list of deﬁned terms CTR company: repealed (with effect on 1 July 2011), on 7 May 2012, by section 96(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OC 19 FDPA transfer to CTR account [Repealed] Section OC 19: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 97(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OC 20 Debit for policyholder base FDP credits Debit (1) An FDP company has an FDP debit for the amount of an FDP credit attached to a dividend derived by the company, to the extent to which it is derived by it as a life insurer and appor- tioned to their policyholder base.

(2) (3) Table reference The FDP debit in section (1) is referred to in table O4: FDP debits, row 9 (debit for policyholder base FDP credits).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: FDP company FDP credit, FDP debit, life insurer, policy- holder base, tax year Section OC 20: substituted, on 1 July 2010, by section 410(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 21 FDPA transfer to group account Debit (1) An FDPA company has an FDP debit for an amount equal to the amount of an FDP credit under section OP 59 (Con- solidated FDPA group company’s credit) for the transfer of a credit to the FDP account of the consolidated group of which the company is part.

Table references The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 10 (transfer to group account).
The FDP credit (2) 2320 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 22 (3) in subsection (1) is referred to in table O21: FDP credits of consolidated FDP groups, row 5 (group company’s credit).

Debit date The debit date is the same as the credit date recorded in the consolidated group’s FDP account.
Deﬁned in this Act: amount, consolidated group, FDP account, FDP credit, FDP debit, FDPA company Compare: 2004 No 35 s MG 16(3) OC 22 FDPA breach of FDP ratio Debit (1) An FDPA company has an FDP debit for a breach of the bench- mark dividend rules in section OC 28(4) for an amount calcu- lated using the formula— net dividends × FDP ratio – credits attached.
(2) Deﬁnition of items in formula In the formula,— (a) net dividends is the total amount of all dividends paid by the company during the tax year, excluding imput- ation credits and FDP credits attached to the dividends: FDP ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum per- mitted ratios) or, if it is less, the greatest FDP ratio of dividends paid by the company during the tax year: credits attached is the total amount of all FDP credits attached to dividends paid by the company during the tax year.
(b) (c) (3) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 11 (breach of FDP ratio).

Ratio change declaration (4) A debit under subsection (1) does not arise if the FDPA company provides a ratio change declaration under section OC 28(6).

2321 Part O s OC 23 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, benchmark dividend, dividend, FDP account, FDP credit, FDP debit, FDP ratio, FDPA company, imputation credit, pay, tax year Compare: 2004 No 35 ss MG 5(1)(f), (2)(e), MG 8(4) OC 23 FDPA breach of FDP ratio by PCA company [Repealed] Section OC 23: repealed, on 1 July 2010, by section 411(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 24 FDPA debit for loss of shareholder continuity Debit (1) An FDPA company has an FDP debit for the amount equal to the amount of an FDP credit retained in the FDP account and unused at the time at which shareholder continuity is lost.

Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 13 (debit for loss of shareholder continuity).

When debit arises The debit arises at the time shareholder continuity is lost.
(2) (3) Qualifying companies (3B) This section does not apply to a qualifying company in circum- stances other than those set out in section HA 18 (Treatment of dividends when qualifying company status ends), and that section overrides subsections (1) to (3).

Avoidance arrangements Section GB 41 (FDPA arrangements for carrying amounts for- ward) may apply to treat a company as not meeting the require- ments of this section.
Deﬁned in this Act: amount, FDP account, FDP credit, FDP debit, FDPA com- pany, qualifying company, shareholder Compare: 2004 No 35 ss HG 13(6), MG 5(1)(i), (2)(g), (3), (4) Section OC 24(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 89(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
(4) 2322 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 26 Section OC 24(3) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 89(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OC 24(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 89(2) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
Section OC 24(3B) heading: inserted (with effect on 1 April 2008), on 21 De- cember 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section OC 24(3B): inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section OC 24 list of deﬁned terms qualifying company: inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 118(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section OC 24 compare note: amended (with effect on 1 April 2008), on 21 De- cember 2010 (applying for the 2008–09 and later income years), by section 118(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OC 25 FDPA tax advantage arrangement Debit (1) An FDPA company has an FDP debit for the amount of a debit for a tax advantage arrangement determined under sections GB 35 and GB 36 (which relate to imputation arrangements to obtain tax advantage).

(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 14 (tax advantage arrangement).

Debit date The debit date is the last day of the tax year in which the tax advantage arrangement began.
Deﬁned in this Act: amount, arrangement, FDP debit, FDPA company, tax ad- vantage, tax year Compare: 2004 No 35 s MG 5(1)(h), (2)(f) OC 26 FDPA ﬁnal balance Debit (1) An FDPA company has an FDP debit for a credit balance in the FDP account when the company stops being an FDPA com- pany.

2323 Part O s OC 27 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) Table reference The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 15 (ﬁnal balance).
Debit date The debit date is the day the company stops being an FDPA company.

Deﬁned in this Act: FDP account, FDP debit, FDPA company Compare: 2004 No 35 s MG 5(1)(j), (2)(h) FDP credits attached to dividends OC 27 FDP credits attached to dividends Attaching FDP credits (1) When an FDPA company pays a dividend, it may attach an FDP credit to the dividend.

Subsection (2) overrides this sub- section.


Exclusion [Repealed] [Repealed] (2) FDP ratio for dividend (3) A dividend with an FDP credit attached has an FDP ratio cal- culated using the formula— credit attached net dividends.

(4) Deﬁnition of items in formula In the formula,— (a) credit attached is the amount of FDP credit attached to the dividend: net dividends is the amount of dividends paid, exclud- ing imputation credits and FDP credits.
(b) Maximum permitted ratio (5) A dividend with an FDP credit attached must not have an FDP ratio that is more than the maximum permitted ratio calculated 2324 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 28 under section OA 18(2) (Calculation of maximum permitted ratios).
Deﬁned in this Act: amount, company, dividend, FDP, FDP account, FDP credit, FDP ratio, FDPA company, imputation credit, maximum permitted ratio, pay Compare: 2004 No 35 ss MG 6, MG 8(1), (2) Section OC 27(2) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 98(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OC 27(2): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 98(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OC 27 list of deﬁned terms CTR company: repealed (with effect on 1 July 2011), on 7 May 2012, by section 98(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OC 28 FDPA benchmark dividend rules (1) (2) (3) (4) When this section applies This section applies when an FDPA company pays a dividend on more than 1 occasion during a tax year.

Subsection (2) overrides this subsection.


Exclusions This section does not apply to a dividend that is the subject of an election by— (a) a statutory producer board under sections OB 73 to OB 75 (which relate to statutory boards’ notional dis- tributions); and a co-operative company under sections OB 78 to OB 80 (which relate to co-operative companies’ notional dis- tributions).

(b) Benchmark dividend The ﬁrst dividend of the tax year is the benchmark dividend.
Same FDP ratio The FDP ratio of a dividend paid after the benchmark dividend must be the same as the FDP ratio of the benchmark dividend.

This subsection is modiﬁed by section OZ 9 (Benchmark divi- dends: ratio change).

2325 Part O s OC 28 Income Tax Act 2007 Reprinted as at 29 May 2012 Breach of FDP ratio (5) A breach of subsection (4) gives rise to an FDP debit under section OC 22 (table O4: FDP debits, row 11 (breach of FDP ratio)) for an amount calculated using the formula in section OC 22(1).
Ratio change declaration (6) An FDPA company may notify the Commissioner that the divi- dend is not part of an arrangement to obtain a tax advantage by providing a ratio change declaration stating that the dividend is not part of an arrangement to which sections GB 35 and GB 36 (which relate to imputation arrangements to obtain tax advan- tage) apply.

The company must provide the declaration before the dividend is paid, or by a later date if the Commissioner al- lows.
For the purposes of this subsection, the dividend must not be part of an arrangement to obtain a tax advantage.

This subsection overrides subsection (5).

(7) Consolidated group This section applies, modiﬁed as necessary, to a consolidated group as if it were a single company.
Group debit (8) Under section OP 54 (When credits and debits arise only in consolidated FDP group accounts), a breach of an FDP ratio alternatively gives rise to an FDP debit under section OP 72 (Consolidated FDPA breach of FDP ratio) (table O22: FDP debits of consolidated group, row 10 (breach of FDP ratio)) if the company is part of a consolidated group.

Treatment of group dividends In the application of this section to a consolidated group, a dividend paid between group companies is disregarded.
Deﬁned in this Act: amount, arrangement, benchmark dividend, Commis- sioner, company, consolidated group, co-operative company, dividend, FDP, FDP debit, FDP ratio, FDPA company, pay, statutory producer board, tax advantage, tax year Compare: 2004 No 35 ss MG 8(2), (3), MG 16A(1) Section OC 28(4): amended, on 1 October 2010, by section 13 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
(9) 2326 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 29 OC 29 FDP credits and imputation credits attached to dividends Attaching combined credits (1) When an FDPA company pays a dividend, it may attach both an FDP credit and an imputation credit to the dividend.

Combined ratio (2) A dividend with combined credits attached has a combined imputation and FDP ratio calculated using the formula— combined credits attached net dividends.
(3) Deﬁnition of items in formula In the formula in subsection (2),— (a) combined credits attached is the total amount of FDP credits and the imputation credits attached to the divi- dend: net dividends is the amount of dividends paid, ex- cluding the amount of FDP credits and the imputation credits.
(b) Maximum permitted ratio (4) A dividend with combined credits attached must not have a combined imputation and FDP ratio that is more than the maxi- mum permitted ratio calculated under section OA 18(2) (Cal- culation of maximum permitted ratios).

Breach of combined ratio breach (5) A breach of the maximum ratio referred to in subsection (4) gives rise to an excess credit amount that is calculated using the formula— net dividends × (combined ratio – maximum ratio).
(6) Deﬁnition of items in formula In the formula in subsection (5),— (a) net dividends is the amount of dividends paid, exclud- ing FDP credits and the imputation credits: combined ratio is the combined imputation and FDP ratio of the dividend: (b) (c) maximum ratio is the maximum combined imputation and FDP ratio permitted under subsection (4).
2327 Part O s OC 30 Income Tax Act 2007 Reprinted as at 29 May 2012 (7) Relationship with section OZ 8 Section OZ 8 (Attaching imputation credits and FDP credits: maximum permitted ratio) may apply to modify this section.
Deﬁned in this Act: amount, basic rate, combined imputation and FDP ratio, company, dividend, excess credit amount, FDP credit, FDP ratio, FDPA com- pany, imputation credit, income tax, income year, maximum permitted ratio, pay, tax year Compare: 2004 No 35 s MG 10 Section OC 29(7) heading: added, on 1 April 2008, by section 504 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OC 29(7): added, on 1 April 2008, by section 504 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

Further income tax Heading: substituted (with effect on 30 June 2009), on 6 October 2009, by sec- tion 412 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 30 Payment of further income tax for closing debit balance Liability (1) An FDPA company or consolidated FDP group is liable to pay further income tax for a closing debit balance in the FDP ac- count of the company or the group.

Due date The company or group must pay the further income tax to the Commissioner no later than the 20 June following the end of the tax year.
Application of other provisions [Repealed] [Repealed] Deﬁned in this Act: amount, Commissioner, company, consolidated FDP group, FDP account, FDPA company, further income tax, pay, tax year Compare: 2004 No 35 s MG 9(1), (2), (6) Section OC 30 heading: amended (with effect on 30 June 2009), on 6 October 2009, by section 413(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 30(1) heading: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 413(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

(2) (3) 2328 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 31 Section OC 30(1): substituted (with effect on 30 June 2009), on 6 October 2009, by section 413(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 30(2) heading: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 413(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 30(2): substituted (with effect on 30 June 2009), on 6 October 2009, by section 413(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 30(3) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 413(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 30(3): repealed (with effect on 30 June 2009), on 6 October 2009, by section 413(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 30 list of deﬁned terms FDP rules: repealed (with effect on 30 June 2009), on 6 October 2009, by section 413(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 30 list of deﬁned terms further FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 413(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 30 list of deﬁned terms income tax: repealed (with effect on 30 June 2009), on 6 October 2009, by section 413(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 30 list of deﬁned terms further income tax: inserted (with effect on 30 June 2009), on 6 October 2009, by section 413(4)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 31 Payment of further income tax when company no longer New Zealand resident Liability (1) An FDPA company is liable to pay further income tax for a debit balance in the company’s FDP account when the com- pany stops being resident in New Zealand.

(2) Due date The company must pay the further income tax to the Commis- sioner by the day the company stops being resident in New Zealand.
2329 Part O s OC 31 Income Tax Act 2007 Reprinted as at 29 May 2012 Paramount section (3) A company to which this section applies that stops being an FDPA company on the last day of a tax year is liable for further income tax under this section and not under section OC 30.
Application of other provisions [Repealed] [Repealed] Deﬁned in this Act: Commissioner, FDP account, FDPA company, further in- come tax, pay, resident in New Zealand, tax year Compare: 2004 No 35 s MG 9(3) Section OC 31 heading: amended (with effect on 30 June 2009), on 6 October 2009, by section 414(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 31(1) heading: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 414(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 31(1): substituted (with effect on 30 June 2009), on 6 October 2009, by section 414(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 31(2) heading: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 414(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 31(2): substituted (with effect on 30 June 2009), on 6 October 2009, by section 414(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 31(3) heading: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 414(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 31(3): substituted (with effect on 30 June 2009), on 6 October 2009, by section 414(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 31(4) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 414(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 31(4): repealed (with effect on 30 June 2009), on 6 October 2009, by section 414(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 31 list of deﬁned terms FDP rules: repealed (with effect on 30 June 2009), on 6 October 2009, by section 414(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 31 list of deﬁned terms further FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 414(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(4) 2330 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 32 Section OC 31 list of deﬁned terms further income tax: inserted (with effect on 30 June 2009), on 6 October 2009, by section 414(4)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 32 Reduction of further income tax Debit at previous year-end (1) An FDPA company’s liability for further income tax under section OC 30 or OC 31 may be reduced under subsection (2) if— (a) a debit balance existed in the company’s FDP account at the end of a tax year; and a credit that arises in the account in the following tax year is less than the debit balance; and the company notiﬁes the Commissioner.
(b) (c) (2) Amount of reduction The liability is reduced by the amount that is the debit balance for the tax year less the total amount of credits for the following tax year.
Deﬁned in this Act: amount, Commissioner, FDP account, FDP credit, FDPA company, further income tax, notify, tax year Compare: 2004 No 35 s MG 9(7), (8) Section OC 32 heading: amended (with effect on 30 June 2009), on 6 October 2009, by section 415(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 32(1): amended (with effect on 30 June 2009), on 6 October 2009, by section 415(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OC 32 list of deﬁned terms further FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 415(3)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OC 32 list of deﬁned terms further income tax: inserted (with effect on 30 June 2009), on 6 October 2009, by section 415(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2331 Part O s OC 33 Income Tax Act 2007 Reprinted as at 29 May 2012 OC 33 Income tax paid satisfying liability for further income tax Election (1) On meeting the requirements of subsection (2), an FDPA com- pany that is liable for further income tax may choose to satisfy the liability through a payment of income tax.
(2) (3) (4) Requirements The company must pay the income tax— (a) after the end of the tax year in which the relevant debit balance arises; and for an income year corresponding to a tax year in which the company is an FDPA company.

(b) Payment credited The payment of income tax satisﬁes the company’s liability to pay further income tax.

When treated as paid The further income tax is treated as paid on the day the Com- missioner receives the payment of income tax.
Deﬁned in this Act: Commissioner, company, FDPA company, further income tax, income tax, income year, pay, tax year Section OC 33: substituted (with effect on 30 June 2009), on 6 October 2009, by section 416(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 34 Further income tax paid satisfying liability for income tax Election (1) A company that pays further income tax may choose to treat the payment as satisfying a liability of the company to pay income tax.

(2) FDPA company status The liability referred to in subsection (1) must be for an income year that corresponds with a tax year in which the company is an FDPA company.
Alternative for consolidated group (3) A company that is part of a consolidated FDP group may choose that the payment under subsection (1) satisﬁes a group 2332 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 38 liability for income tax owed by another group company when or after the payment is made.
Deﬁned in this Act: company, consolidated FDP group, FDPA company, further income tax, income tax, income year, pay, tax year Section OC 34: substituted (with effect on 30 June 2009), on 6 October 2009, by section 417(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Some deﬁnitions [Repealed] Heading: repealed, on 1 July 2010, by section 418(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 35 Meaning of FDP reference period [Repealed] Section OC 35: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OC 36 Meaning of maximum deﬁcit debit [Repealed] Section OC 36: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OC 37 Meaning of policyholder FDP ratio [Repealed] Section OC 37: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OC 38 Meaning of reduced deﬁcit debit [Repealed] Section OC 38: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2333 Part O s OC 39 Income Tax Act 2007 Reprinted as at 29 May 2012 OC 39 Meaning of shareholder FDP ratio [Repealed] Section OC 39: repealed, on 1 July 2010, by section 418(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2334 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 39 Table O3: FDP credits Row FDP credit Credit date Further deﬁned Opening credit balance 1 April section OA 7 [Repealed] [Repealed] FDP credit attached to dividend derived day on which dividend is paid section OC 7 [Repealed] [Repealed] [Repealed] FDP credit attached to dividend and shown in credit transfer notice day on which notice is given section OC 11 Reversal of debt for tax advantage arrangement debit date of debit section OC 12 Table O3 row 2: repealed (with effect on 30 June 2009), on 6 October 2009, by section 419(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O3 row 3: repealed (with effect on 30 June 2009), on 6 October 2009, by section 419(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O3 row 5: repealed (with effect on 30 June 2009), on 6 October 2009, by section 419(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O3 row 6: repealed (with effect on 30 June 2009), on 6 October 2009, by section 419(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O3 row 7: repealed (with effect on 30 June 2009), on 6 October 2009, by section 419(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2335 Part O s OC 39 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O4: FDP debits Row FDP debit Debit date Further deﬁned Opening debit balance 1 April section OA 7 FDP credit attached to dividend paid day of payment section OC 13 Refund of FDP day of refund section OC 14 Overpaid FDP applied to satisfy tax liability day of application section OC 15 Transfer or refund of tax credit FDP credit attached to dividend and shown in credit transfer notice Transfer of closing credit balance to company’s imputation credit account Transfer of credit balance to company’s conduit tax relief account Debit for policyholder base FDP credits day of transfer or refund section OC 16 day of payment section OC 17 31 March section OC 18 31 March section OC 19 31 March section OC 20 Transfer of credit to group FDP account credit date in group account section OC 21 Debit for breach of FDP ratio 31 March section OC 22 Breach of FDP ratio by FDPA company that is also PCA company Debit for loss of shareholder continuity Debit for tax advantage arrangement 31 March section OC 23 section OC 24 section OC 25 time of loss of continuity last day of tax year in which arrangement began Final balance when FDPA company status ends day of cessation section OC 26 Table O4 row 5: substituted (with effect on 1 April 2008), on 6 October 2009, by section 420(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O4 row 9: substituted, on 1 July 2010, by section 420(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2336 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OC 39 Table O4 row 10: amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Table O4 row 13: amended (with effect on 1 April 2008), on 7 December 2009, by section 90 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
2337 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart OD—Conduit tax relief accounts (CTRA) [Repealed] Subpart OD: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Contents Introductory provisions [Repealed] OD 1 General rules for companies with CTR accounts [Repealed] OD 2 CTR accounts [Repealed] OD 3 Choosing to become CTR company [Repealed] OD 4 When company stops being CTR company [Repealed] CTR credits [Repealed] OD 5 CTRA tax credit for conduit tax relief [Repealed] OD 6 CTRA transfer from FDP account [Repealed] OD 7 CTRA dividend derived with CTR credit [Repealed] OD 8 CTRA reduction of FDP [Repealed] OD 9 CTRA reversal of tax advantage arrangement [Repealed] CTR debits [Repealed] OD 10 CTRA payment of dividend [Repealed] OD 11 CTRA transfer to FDP account [Repealed] OD 12 CTRA transfer to group account [Repealed] OD 13 CTRA adjustment for conduit tax relief [Repealed] OD 14 CTRA break in shareholding chain for group company [Repealed] OD 15 CTRA break in shareholding chain for company [Repealed] OD 16 CTRA increase in resident shareholding [Repealed] OD 17 CTRA breach of CTR ratio [Repealed] OD 18 CTRA tax advantage arrangement [Repealed] OD 19 CTRA ﬁnal balance [Repealed] CTR credits attached to dividends [Repealed] Page 2339 2339 2339 2340 2340 2340 2340 2340 2341 2341 2341 2341 2341 2342 2342 2342 2342 2342 2342 OD 20 CTR credits attached to dividends [Repealed] 2343 2338 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OD 3 OD 21 CTRA benchmark dividend rules [Repealed] OD 22 CTR credits and imputation credits attached to dividends [Repealed] Payment of FDP and refunds [Repealed] OD 23 FDP payable for CTR debits [Repealed] OD 24 FDP payable on resident’s restricted amalgamation [Repealed] OD 25 Refunds on transfers to CTR account [Repealed] 2343 2343 2343 2344 2344 Introductory provisions [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 1 General rules for companies with CTR accounts [Repealed] Section OD 1: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 2 CTR accounts [Repealed] Section OD 2: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 3 Choosing to become CTR company [Repealed] Section OD 3: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2339 Part O s OD 4 Income Tax Act 2007 Reprinted as at 29 May 2012 OD 4 When company stops being CTR company [Repealed] Section OD 4: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR credits [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

OD 5 CTRA tax credit for conduit tax relief [Repealed] Section OD 5: repealed (with effect on 30 June 2009), on 6 October 2009, by section 424(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 6 CTRA transfer from FDP account [Repealed] Section OD 6: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 7 CTRA dividend derived with CTR credit [Repealed] Section OD 7: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 8 CTRA reduction of FDP [Repealed] Section OD 8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 425(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2340 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OD 13 OD 9 CTRA reversal of tax advantage arrangement [Repealed] Section OD 9: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR debits [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 10 CTRA payment of dividend [Repealed] Section OD 10: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 11 CTRA transfer to FDP account [Repealed] Section OD 11: repealed (with effect on 30 June 2009), on 6 October 2009, by section 426(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 12 CTRA transfer to group account [Repealed] Section OD 12: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 13 CTRA adjustment for conduit tax relief [Repealed] Section OD 13: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2341 Part O s OD 14 Income Tax Act 2007 Reprinted as at 29 May 2012 OD 14 CTRA break in shareholding chain for group company [Repealed] Section OD 14: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 15 CTRA break in shareholding chain for company [Repealed] Section OD 15: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 16 CTRA increase in resident shareholding [Repealed] Section OD 16: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 17 CTRA breach of CTR ratio [Repealed] Section OD 17: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 18 CTRA tax advantage arrangement [Repealed] Section OD 18: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 19 CTRA ﬁnal balance [Repealed] Section OD 19: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR credits attached to dividends 2342 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OD 23 [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 20 CTR credits attached to dividends [Repealed] Section OD 20: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 21 CTRA benchmark dividend rules [Repealed] Section OD 21: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OD 22 CTR credits and imputation credits attached to dividends [Repealed] Section OD 22: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Payment of FDP and refunds [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

OD 23 FDP payable for CTR debits [Repealed] Section OD 23: repealed (with effect on 30 June 2009), on 6 October 2009, by section 428(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2343 Part O s OD 24 Income Tax Act 2007 Reprinted as at 29 May 2012 OD 24 FDP payable on resident’s restricted amalgamation [Repealed] Section OD 24: repealed (with effect on 30 June 2009), on 6 October 2009, by section 429(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OD 25 Refunds on transfers to CTR account [Repealed] Section OD 25: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2344 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OD 25 Table O5: conduit tax relief credits [Repealed] Section OD 25 Table O5: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O6: conduit tax relief debits [Repealed] Section OD 25 Table O6: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 99(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2345 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart OE—Branch equivalent tax accounts (BETA) Contents Introductory provision OE 1 General rules for companies and other persons with branch equivalent tax accounts Companies with branch equivalent tax accounts Introductory provisions OE 2 Branch equivalent tax accounts of companies OE 3 Choosing to become BETA company OE 4 When company stops being BETA company OE 5 Treatment of attributed CFC income and FIF income in this subpart Branch equivalent tax credits OE 6 BETA payment of income tax on foreign income OE 7 BETA payment of income tax OE 8 BETA unused amount of debit balance [Repealed] OE 9 BETA refund of FDP OE 10 BETA credit for loss of shareholder continuity OE 11 BETA ﬁnal balance Page 2347 2348 2349 2350 2350 2351 2352 2355 2355 2356 2357 Treatment of debits from conduit relief OE 11B Company with debit balance, including debits from 2358 conduit relief, in some income years Branch equivalent tax debits [Repealed] OE 12 BETA payment of FDP [Repealed] OE 13 BETA reduction in FDP [Repealed] OE 14 BETA refund of income tax [Repealed] OE 15 BETA debit for loss of shareholder continuity [Repealed] OE 16 BETA ﬁnal balance [Repealed] 2360 2360 2360 2360 2361 Debit if credit balance at beginning of ﬁrst affected income year [Repealed] OE 16B Company with credit balance at beginning of ﬁrst 2361 affected income year [Repealed] 2346 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 1 Persons with branch equivalent tax accounts Introductory provisions OE 17 Person choosing to become BETA person OE 18 When person stops being BETA person 2361 2362 OE 19 BETA person’s payment of income tax on foreign income 2362 Branch equivalent tax credits Branch equivalent tax debits OE 20 BETA person’s payment of income tax OE 21 BETA person’s refund of income tax OE 22 BETA person’s ﬁnal balance 2363 2364 2365 Introductory provision OE 1 General rules for companies and other persons with branch equivalent tax accounts BETA company (1) A company resident in New
 Zealand may choose to be a branch equivalent tax account (BETA) company with a branch equivalent tax account.
BETA person (2) A person resident in New Zealand who is not a company may choose to be a BETA person with a branch equivalent tax ac- count.

(3) (4) General rules: BETA company The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memoran- dum accounts) apply to the branch equivalent tax account of a BETA company.
General rules: BETA person Sections OA 2 and OA 3 apply to a BETA person and their branch equivalent tax account as if references in those sections to a tax year were references to an income year.
Deﬁned in this Act: BETA company, BETA person, branch equivalent tax ac- count, company, income year, memorandum account, resident in New Zealand, tax year Compare: 2004 No 35 ss MF 1(1), MF 11(1) 2347 Part O s OE 2 Income Tax Act 2007 Reprinted as at 29 May 2012 Companies with branch equivalent tax accounts Introductory provisions OE 2 Branch equivalent tax accounts of companies Accounts (1) A BETA company must maintain a branch equivalent tax ac- count for a tax year.
The account is a record of branch equiva- lent tax credits and branch equivalent tax debits that arise in the account during the tax year.

Credits [Repealed] [Repealed] Debits [Repealed] [Repealed] (2) (3) Consolidated groups (4) A consolidated group has a branch equivalent tax account if a group company is a BETA company, or if the group chooses to have the account.
Group credits and debits Certain credits and debits arise in the branch equivalent tax account of a consolidated group and not in the account of a group company.

Shareholder continuity requirement The carrying forward of a credit or a debit in the company’s branch equivalent tax account is subject to the shareholder continuity requirement of section OA 8 (Shareholder continu- ity requirements for memorandum accounts).
Relationship with section OZ 16 Section OZ 16 (BETA reductions) may apply to modify the application of sections OE 6 to OE 16.
Deﬁned in this Act: amount, BETA company, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, CFC, consolidated group, dividend, FDP, foreign attributed income, income tax, pay, shareholder, tax year Compare: 2004 No 35 ss MF 1(3), MF 4(1)(a), (3)(a), (5), MF 7(1)(a), MF 9 (5) (6) (7) 2348 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 3 Section OE 2(2) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 432(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OE 2(2): repealed (with effect on 30 June 2009), on 6 October 2009, by section 432(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OE 2(3) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 432(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OE 2(3): repealed (with effect on 30 June 2009), on 6 October 2009, by section 432(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OE 2(7) heading: added, on 1 April 2008, by section 507 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OE 2(7): added, on 1 April 2008, by section 507 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
OE 3 Choosing to become BETA company Election (1) A company may choose to become a BETA company for a tax year— (a) (b) (c) at any time during the tax year; or no later than the day on which the company is required to ﬁle a return of income for the tax year; or by a later date if the Commissioner allows.
(2) Notifying Commissioner The company must notify the Commissioner of an election under subsection (1)— (a) (b) no later than 21 days after the date of the election; or by a later date if the Commissioner allows.

Effect of election (3) A BETA company must maintain a branch equivalent tax ac- count referred to in section OE 2(1) from the ﬁrst day of the tax year in which the company makes the election.
Deﬁned in this Act: BETA company, branch equivalent tax account, Commis- sioner, company, income year, notify, return of income, tax year Compare: 2004 No 35 s MF 1(1), (2) 2349 Part O s OE 4 Income Tax Act 2007 Reprinted as at 29 May 2012 OE 4 When company stops being BETA company Election (1) A BETA company may choose to stop being a BETA com- pany only in a tax year that is later than the tax year in which the company chooses under section OE 3 to become a BETA company.
(2) When company’s status ends The company ends its status as a BETA company from the ﬁrst day of the tax year after the tax year in which it makes the election but only if it ﬁles an annual imputation credit account (ICA) return for the year of election in the time allowed by section 69 of the Tax Administration Act 1994.
Deﬁned in this Act: annual ICA return, BETA company, tax year Compare: 2004 No 35 s MF 1(4), (5) OE 5 Treatment of attributed CFC income and FIF income in this subpart This subpart applies to a person with an attributing interest in a foreign investment fund (FIF) by treating— (a) FIF income derived from the person’s interest as at- tributed CFC income, if the FIF income is calculated— (i) (ii) under the attributable FIF income method; or under a method to which section EX 50(6) or EX 58 (which relate to the calculation of FIF income) applies; and the fund as a CFC; and the interest as an income interest.
(b) (c) Deﬁned in this Act: attributable FIF income method, attributed CFC income, attributing interest, CFC, FIF, FIF income, income interest Compare: 2004 No 35 s MF 15 Section OE 5(a)(i): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 102(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 5 list of deﬁned terms accounting proﬁts method: repealed (with effect on 1 July 2011), on 7 May 2012, by section 102(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OE 5 list of deﬁned terms attributable FIF income method: inserted (with effect on 1 July 2011), on 7 May 2012, by section 102(2)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2350 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 6 Section OE 5 list of deﬁned terms branch equivalent method: repealed (with effect on 1 July 2011), on 7 May 2012, by section 102(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Branch equivalent tax credits OE 6 BETA payment of income tax on foreign income Credit (1) A BETA company has a branch equivalent tax credit for the lesser of the amount by which the branch equivalent tax account is in debit and the amount calculated using the formula— ((CFC income for year – deductions for year) × tax rate) – foreign tax credits – debit balances.
(2) Deﬁnition of items in formula In the formula,— (a) (b) (c) (d) (e) CFC income for year is the amount of attributed CFC income derived during the income year corresponding to the tax year referred to in subsection (3): deductions for year is the total amount in the income year corresponding to the tax year referred to in subsec- tion (3) of— (i) (ii) (iii) FIF loss; and (iv) FIF net loss: tax rate is the basic rate of income tax set out in— (i) attributed CFC loss; and attributed CFC net loss; and schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) if the company is not a Maori au- thority; or schedule 1, part A, clause 7 if the company is a Maori authority: (ii) foreign tax credits is the amount of foreign tax credits allowed for the income year corresponding to the tax year referred to in subsection (3) under sections LK 1 to LK 7 (which relate to foreign tax credits of CFCs), as applicable: debit balances is the total amount of all debit balances in a branch equivalent tax account applied to satisfy the 2351 Part O s OE 7 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) company’s income tax liability for the income year cor- responding to the tax year referred to in subsection (3).
Table reference The branch equivalent tax credit in subsection (1) is referred to in table O7: branch equivalent tax credits, row 2 (income tax on foreign income).

Credit date The credit date is the day the company ﬁles the return of in- come for the tax year.
Deﬁned in this Act: amount, attributed CFC income, attributed CFC loss, at- tributed CFC net loss, basic rate, BETA company, branch equivalent tax ac- count, branch equivalent tax credit, FIF loss, FIF net loss, foreign tax, income tax, income tax liability, income year, Maori authority, tax year Compare: 2004 No 35 s MF 4(1)(a), (2)(a) Section OE 6(1): amended (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 104(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 6(2)(c)(i): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OE 7 BETA payment of income tax When this section applies This section applies when— (a) (b) (c) a BETA company has a debit balance in its branch equivalent tax account; and the income of the company includes an amount of at- tributed CFC income; and an amount of FDP that gives rise to a debit included in the debit balance has been paid— (i) (ii) (iii) directly; or by reducing a tax loss; or to reduce an FDP liability under section RG 7 (Reduction of payments for conduit tax relief).
Group companies This section also applies in relation to a BETA company if another company (company B) that is part of the same group of companies has a debit balance in its branch equivalent tax account that arises in the circumstances set out in subsection (1).
(1) (2) 2352 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 7 (3) Election The company or company B may choose to apply under sec- tion BC 8 (Satisfaction of income tax liability) some or all of the debit balance to satisfy an income tax liability in relation to attributed CFC income that is allocated to an income year beginning before 1 July 2011.
The election must be made before the end of the ﬁrst income year beginning on or after 1 July 2011, for the company having the branch equivalent tax account with the debit balance, by recording a credit in that branch equivalent tax account.
Maximum amount (3B) Despite subsection (3) and section OP 101(2) (Consolidated BETA payment of income tax), the amount of BETA debits applied under elections under subsection (3) and section OP 101(2) relating to the attributed CFC income referred to in subsection (3) must be no more than the amount calculated under section OE 6(1) for the company that has the attributed CFC income, treating the item debit balances as zero.
(4) (5) (6) Credit [Repealed] [Repealed] Table reference The branch equivalent tax credit in subsection (3), as limited by subsection (3B), is referred to in table O7: branch equiva- lent tax credits, row 3 (payment of income tax).
Excess amount treated as tax loss component If a company chooses under subsections (3) and (3B) to apply a debit amount that exceeds the total income tax liability for the attributed CFC income referred to in subsection (3), the excess amount is treated as an amount of tax loss component of the company having the attributed income calculated using the formula— debit applied – tax liability tax rate.
Deﬁnition of items in formula In the formula,— (7) 2353 Part O s OE 7 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) debit applied is the amount of the debit balance applied by the company under an election under subsections (3) and (3B): tax liability is the total income tax liability for the at- tributed CFC income: tax rate is the basic rate of income tax set out in— (i) schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts), if the company is not a Maori authority; or schedule 1, part A, clause 7, if the company is a Maori authority.
(ii) Income tax paid For the purposes of this section, the income tax liability — (a) is calculated by applying the formula in section OE 6(1) on the basis that the item debit balances is zero: is satisﬁed to the extent to which the liability is no more than the income tax payable in relation to the amount of the attributed CFC income.

(b) Credit date The credit date is the day of election.
Deﬁned in this Act: amount, attributed CFC income, basic rate, BETA company, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, company, consolidated group, dividend, FDP, income, income interest, income tax, income tax liability, income year, Maori authority, pay, tax loss component, tax year Compare: 2004 No 35 ss MF 4(1)(c), (2)(b), MF 5(4)–(7) Section OE 7(2): amended, on 1 April 2008, by section 508(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OE 7(3): replaced (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 106(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OE 7(3B): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 115(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OE 7(4) heading: repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), pursuant to section 115(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
(8) (9) 2354 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 9 Section OE 7(4): repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 115(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OE 7(5): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 115(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OE 7(6) heading: substituted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), pursuant to section 115(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OE 7(6): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 115(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OE 7(7) heading: substituted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), pursuant to section 115(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OE 7(7): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 115(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

OE 8 BETA unused amount of debit balance [Repealed] Section OE 8: repealed (with effect on 1 April 2008), on 29 August 2011 (apply- ing for the 2008–09 and later income years), by section 116(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OE 9 BETA refund of FDP Credit (1) A BETA company has a branch equivalent tax credit for the amount of a refund of FDP paid to the company.

Subsections (2) to (3B) override this subsection.

Refund giving rise to debit (2) A refund under subsection (1) must be a refund of a payment of FDP that gave rise to a debit under section OE 12.
(3) Reduction The amount of the credit under subsection (1) is reduced to the extent to which— (a) the payment of FDP is made before a branch equivalent tax credit arises under section OE 10 in the company’s branch equivalent tax account; and 2355 Part O s OE 10 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) the amount of the refund is no more than the amount of the credit for loss of shareholder continuity.
Limit on amount (3B) The amount of the credit under subsection (1), after any reduc- tion under subsection (3), is limited to the amount of the debit in the company’s branch equivalent tax account at the time of the refund.
(4) (5) Table references The table references are as follows: (a) the branch equivalent tax credit in subsection (1) is re- ferred to in table O7: branch equivalent tax credits, row 4 (refund of FDP): the branch equivalent tax debit in subsection (2) is re- ferred to in table O8: branch equivalent tax debits, row 2 (payment of FDP): the branch equivalent tax credit in subsection (3)(a) is referred to in table O7: branch equivalent tax credits, row 5 (credit for loss of shareholder continuity).
(b) (c) Credit date The credit date is the day the refund is made.

Deﬁned in this Act: amount, BETA company, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, FDP, pay, shareholder Compare: 2004 No 35 s MF 4(1)(d), (2)(c) Section OE 9(1): amended (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 108(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OE 9(3B) heading: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 108(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OE 9(3B): inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 108(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OE 10 BETA credit for loss of shareholder continuity Credit (1) A BETA company has a branch equivalent tax credit for the amount of a branch equivalent tax debit retained in the branch 2356 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 11 (2) (3) (4) equivalent tax account and unused at the time at which share- holder continuity is lost.
Table reference The branch equivalent tax credit in subsection (1) is referred to in table O7: branch equivalent tax credits, row 5 (credit for loss of shareholder continuity).

When credit arises The credit arises at the time shareholder continuity is lost.

Avoidance arrangements Section GB 40 (BETA arrangements for carrying amounts for- ward) may exclude a company from the application of this sec- tion.
Deﬁned in this Act: amount, BETA company, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, shareholder Compare: 2004 No 35 s MF 4(1)(e), (2)(d), (5), (6) Section OE 10(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 91(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OE 10(3) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 91(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OE 10(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 91(2) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
OE 11 BETA ﬁnal balance Credit (1) A BETA company has a branch equivalent tax credit for a debit balance in the branch equivalent tax account when the com- pany stops being resident in New Zealand.

(2) Table reference The branch equivalent tax credit in subsection (1) is referred to in table O7: branch equivalent tax credits, row 6 (ﬁnal bal- ance).
2357 Part O s OE 11B Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Credit date The credit date is the day the company stops being resident in New Zealand.
Deﬁned in this Act: BETA company, branch equivalent tax account, branch equivalent tax credit, resident in New Zealand Compare: 2004 No 35 s MF 4(1)(f), (2)(e) Treatment of debits from conduit relief Heading: inserted (with effect on 30 June 2009), on 7 September 2010 (apply- ing for income years beginning on or after 1 July 2009), by section 103(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OE 11B Company with debit balance, including debits from conduit relief, in some income years When this section applies This section applies when a BETA company, in an income year beginning on or after 1 July 2009 (an affected year), has a debit balance— (a) (b) in its branch equivalent tax account; and that includes an amount (the CTR-relief amount) equal to the total of amounts that— (i) (ii) relate to branch equivalent tax debits in the branch equivalent tax account that each arose under section OE 12 in relation to a foreign dividend; and equal, for each branch equivalent tax debit, the reduction under section RG 7 (Reduction of pay- ments for conduit tax relief) of the company’s li- ability to pay FDP to the Commissioner for the foreign dividend.
Use of CTR-relief amount The BETA company may not choose under section OE 7 to apply the CTR-relief amount to satisfy an income tax liability except by an election— (a) relating to attributed CFC income that the company al- locates to an income year beginning before 1 July 2009; and (b) made before the earlier of— (1) (2) 2358 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 11B (i) (ii) the ﬁrst election under section OE 7 relating to at- tributed CFC income that the company allocates to an affected year: the end of the ﬁrst affected year.
(3) Determination of CTR-relief amount The CTR-relief amount in a branch equivalent tax account is found by— (a) (b) (c) treating a branch equivalent tax debit that arises partly from a reduction of FDP under section RG 7 and partly from a payment of FDP as being 2 debits, one equal to the reduction of FDP and the other equal to the amount of the payment of FDP; and if a branch equivalent tax credit arises before the ﬁrst affected year other than from an election relating to at- tributed CFC income allocated to an affected year or arises in an affected year from an election meeting the requirements of the exception to subsection (2), treating the credit as— (i) reducing branch equivalent tax debits in the order in which the debits arise; and for branch equivalent tax debits arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribu- tion of the debit to the total of the debits; and (ii) if the treatment of a branch equivalent tax credit is not given by paragraph (b), treating the credit as— (i) reducing branch equivalent tax debits arising from the payment of FDP in the order in which the debits arise; and after all branch equivalent tax debits arising from the payment of FDP are reduced to zero, reducing debits arising from a reduction of FDP under sec- tion RG 7 in the order in which the debits arise; and for branch equivalent tax debits subject to the same subparagraph and arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribution of the debit to the total of the debits; and (ii) (iii) 2359 Part O s OE 12 Income Tax Act 2007 Reprinted as at 29 May 2012 (d) counting an amount of a branch equivalent tax credit only once in the reduction of some or all of a branch equivalent tax debit.
Deﬁned in this Act: attributed CFC income, BETA company, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, Commis- sioner, company, FDP, foreign dividend income tax liability, income year Section OE 11B: inserted (with effect on 30 June 2009), on 7 September 2010 (applying for income years beginning on or after 1 July 2009), by section 103(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Branch equivalent tax debits [Repealed] Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by sec- tion 433(1) the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OE 12 BETA payment of FDP [Repealed] Section OE 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 433(1) the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
OE 13 BETA reduction in FDP [Repealed] Section OE 13: repealed (with effect on 30 June 2009), on 6 October 2009, by section 433(1) the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

OE 14 BETA refund of income tax [Repealed] Section OE 14: repealed (with effect on 30 June 2009), on 6 October 2009, by section 434(1) the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
OE 15 BETA debit for loss of shareholder continuity [Repealed] Section OE 15: repealed (with effect on 30 June 2009), on 6 October 2009, by section 434(1) the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
2360 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 17 OE 16 BETA ﬁnal balance [Repealed] Section OE 16: repealed (with effect on 30 June 2009), on 6 October 2009, by section 434(1) the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Debit if credit balance at beginning of ﬁrst affected income year [Repealed] Heading: repealed (with effect on 30 June 2009), on 7 September 2010, by section 104 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OE 16B Company with credit balance at beginning of ﬁrst affected income year [Repealed] Section OE 16B: repealed (with effect on 30 June 2009), on 7 September 2010, by section 104 of the Taxation (Annual Rates, Trans-Tasman Savings Portabil- ity, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Persons with branch equivalent tax accounts Introductory provisions OE 17 Person choosing to become BETA person Election (1) A person who is eligible under section OE 1(2) and who chooses to become a BETA person may make the election for an income year— (a) (b) at any time during the income year; or no later than the day on which the person is required to ﬁle a return of income for the income year; or by a later date if the Commissioner allows.
(c) (2) Notice The person must notify the Commissioner of the election under subsection (1)— (a) (b) no later than 21 days after the election; or by a later date if the Commissioner allows.

2361 Part O s OE 18 Income Tax Act 2007 Reprinted as at 29 May 2012 Effect of election (3) A BETA person must maintain a branch equivalent tax account from the ﬁrst day of the income year in which they make the election.
Deﬁned in this Act: BETA person, branch equivalent tax account, Commis- sioner, income year, notify, return of income Compare: 2004 No 35 s MF 11(1), (2) OE 18 When person stops being BETA person Election (1) A BETA person may choose to stop the branch equivalent tax account.

When election made (2) A person may make an election under subsection (1) only in an income year that is later than the income year in which the person chose under section OE 1(2) to become a BETA person.
(3) When person’s status ends The person ends their status as a BETA person from the ﬁrst day of the income year after the income year in which the election referred to in subsection (1) is made but only if they ﬁle an annual branch equivalent tax account return for the year of election in the time allowed by section 78(3) of the Tax Administration Act 1994.
Deﬁned in this Act: annual branch equivalent tax account return, BETA person, branch equivalent tax account, income year Compare: 2004 No 35 s MF 13(1), (2) Branch equivalent tax credits OE 19 BETA person’s payment of income tax on foreign income Credit (1) A BETA person has a branch equivalent tax credit for an in- come year for an amount calculated using the formula— tax liability × (CFC or taxable income) (taxable income) foreign tax credits.
Deﬁnition of items in formula In the formula,— (2) 2362 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 20 (a) tax liability is the person’s income tax liability for the income year: (i) (b) CFC or taxable income is the lesser of the person’s— attributed CFC income derived during the income year; or taxable income for the income year: (ii) taxable income is the person’s taxable income for the income year: foreign tax credits is the foreign tax credits allowed for the income year under sections LK 1 to LK 7 (which relate to tax credits relating to attributed CFC income).
(c) (d) (3) (4) Table reference The branch equivalent tax credit in subsection (1) is referred to in table O9: person’s branch equivalent tax credits, row 2 (payment of income tax on foreign income).

Credit date The credit date is the day the person ﬁles the return of income for the tax year corresponding to the income year.
Deﬁned in this Act: amount, attributed CFC income, BETA person, branch equivalent tax account, branch equivalent tax credit, foreign tax, income tax, income tax liability, income year, return of income, tax year, taxable income Compare: 2004 No 35 ss MF 13(1), (2), MF 14 Branch equivalent tax debits OE 20 BETA person’s payment of income tax Election (1) On meeting the requirements of subsection (4), a BETA per- son may choose to use some or all of a credit balance in their branch equivalent tax account to satisfy an income tax liability of the person for an income year.
(2) (3) Debit The amount used to satisfy the income tax liability is a branch equivalent tax debit in the person’s branch equivalent tax ac- count.

Table reference The branch equivalent tax debit in subsection (2) is referred to in table O10: person’s branch equivalent tax debits, row 2 (payment of income tax).
2363 Part O s OE 21 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Requirements The person may make an election under subsection (1) if— (a) they derive a dividend from an income interest in a CFC during the income year; and a credit balance exists in their branch equivalent tax ac- count; and they have paid the income tax giving rise to a credit included in the credit balance.
(b) (c) (5) Manner of election The person makes the election by recording the amount as a debit in the branch equivalent tax account.

Income tax paid (6) Once the election is made, the income tax liability is satisﬁed to the extent to which the liability is no more than the income tax payable on the amount of the dividend derived.

(7) Debit date The debit date is the day of election.
Deﬁned in this Act: amount, BETA person, branch equivalent tax account, branch equivalent tax debit, CFC, dividend, income interest, income tax, in- come tax liability, income year, pay Compare: 2004 No 35 ss MF 13(3)(a), MF 14 OE 21 BETA person’s refund of income tax Debit (1) A BETA person has a branch equivalent tax debit for an in- come year for the amount of a refund of income tax attributable to income tax paid for the income year on attributed CFC in- come derived during the income year.
Table reference The branch equivalent tax debit in subsection (1) is referred to in table O10: person’s branch equivalent tax debits, row 3 (refund of income tax).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, attributed CFC income, BETA person, branch equivalent tax debit, income tax, income year, pay Compare: 2004 No 35 s MF 13(3)(b) (2) (3) 2364 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 22 OE 22 BETA person’s ﬁnal balance Debit (1) A BETA person has a branch equivalent tax debit for a credit balance in the branch equivalent tax account when the person stops being resident in New Zealand.
(2) (3) Table reference The branch equivalent tax debit in subsection (1) is referred to in table O10: person’s branch equivalent tax debits, row 4 (ﬁnal balance).

Debit date The debit date is the day the person stops being resident in New Zealand.
Deﬁned in this Act: BETA person, branch equivalent tax account, branch equivalent tax debit, resident in New Zealand Compare: 2004 No 35 s MF 13(3)(c) 2365 Part O s OE 22 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O7: branch equivalent tax credits Row Branch equivalent tax credit Credit date Further deﬁned Opening credit balance 1 April section OA 7 [Repealed] Debit balance applied to satisfy income tax liability day of election section OE 7 Refund of FDP day of refund section OE 9 Credit for loss of shareholder continuity time of loss of continuity section OE 10 Debit balance when company stops being resident in New Zealand day of cessation section OE 11 Table O7 row 2: repealed (with effect on 30 June 2009), on 6 October 2009, by section 436(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O7 row 5: amended (with effect on 1 April 2008), on 7 December 2009, by section 92 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Table O8: branch equivalent tax debits [Repealed] Table O8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 437(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2366 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OE 22 Table O9: person’s equivalent tax credits Row Branch equivalent tax credit Credit date Further deﬁned 1 2 Opening credit balance 1 April section OA 7 Income tax paid on foreign income derived in income year section OE 19 day on which return of income for income year is ﬁled Table O10: person’s branch equivalent tax debits Row Branch equivalent tax debit Debit date Further deﬁned 1 2 3 4 Opening debit balance 1 April section OA 7 Credit balance applied to satisfy income tax liability Refund of income tax for attributed CFC income Credit balance when New Zealand residence ends day of election section OE 20 day of refund section OE 21 day of cessation section OE 22 2367 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart OF—Available subscribed capital accounts (ASCA) Contents Introductory provisions OF 1 General rules for companies with ASC accounts OF 2 ASC accounts OF 3 Choosing to become ASC account company OF 4 ASCA redemption credit ASC credits OF 5 ASCA transfer to imputation credit account ASC debits Page 2368 2369 2369 2370 2371 Introductory provisions OF 1 General rules for companies with ASC accounts ASC account company (1) A public unit trust or a group investment fund that derives cat- egory A income may choose to become an available subscribed capital (ASC) account company.
This section does not apply to a multi-rate PIE.

ASC account (2) An ASC account company must maintain an ASC account for a tax year.

The account is a record of ASC credits and ASC debits that arise in the account during the tax year.

(3) Credits Credits to the account include redemption proceeds that are less than the ASC company’s available subscribed capital cal- culated under the slice rule.
Debits (4) Debits to the account include a transfer of a credit balance to the company’s imputation credit account.
Deﬁned in this Act: ASC account, ASC account company, ASC credit, ASC debit, available subscribed capital, category A income, group investment fund, imputation credit account, multi-rate PIE, public unit trust, slice rule, tax year Compare: 2004 No 35 ss MJ 1(1), MJ 5(1), MJ 6(1) 2368 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OF 3 Section OF 1(1): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 438(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OF 1 list of deﬁned terms multi-rate PIE: inserted, on 1 April 2010, by section 438(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OF 1 list of deﬁned terms portfolio tax rate entity: repealed, on 1 April 2010, by section 438(2)(a) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
OF 2 ASC accounts The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to the ASC account of an ASC account com- pany.
Deﬁned in this Act: ASC account, ASC account company, memorandum ac- count Compare: 2004 No 35 s MJ 3(1) OF 3 Choosing to become ASC account company Election (1) A company may choose to become an ASC account company if— (a) (b) it is a public unit trust or a group investment fund that derives category A income; and it has issued shares on terms that their redemption will be subject to section CD 22(4) (Returns of capital: off- market share cancellations).
Notifying Commissioner (2) A company that makes an election under subsection (1) must notify the Commissioner of the election no later than the day on which the company is required to ﬁle a return of income for the tax year that corresponds to the income year in which the election is made.
2369 Part O s OF 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Effect of election (3) An ASC account company must maintain the ASC account re- ferred to in section OF 1(2) from the day the company chooses to become an ASC account company.
Deﬁned in this Act: ASC account company, category A income, Commissioner, company, group investment fund, income year, notify, public unit trust, return of income, share, tax year Compare: 2004 No 35 s MJ 1(1) ASC credits OF 4 ASCA redemption credit Credit (1) An ASC account company has an ASC credit when the com- pany redeems a share in the company for an amount calculated using the formula— ASC amount – redemption proceeds.
Deﬁnition of items in formula In the formula,— (a) ASC amount is the amount of the available subscribed capital for the redemption calculated under section CD 22(4) (Returns of capital: off-market share cancel- lations): redemption proceeds is the amount of the proceeds from the redemption calculated under sections CD 4 to CD 6 (which relate to the nature of a dividend).

(b) Positive result If the result of the formula in subsection (1) is negative, the amount is treated as zero.
Table reference The ASC credit in subsection (1) is referred to in table O11: ASC credits, row 2 (redemption credit).

Credit date The credit date is the day the company redeems the share.
Deﬁned in this Act: amount, ASC account, ASC account company, ASC credit, available subscribed capital, share Compare: 2004 No 35 s MJ 5 (2) (3) (4) (5) 2370 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OF 5 ASC debits OF 5 ASCA transfer to imputation credit account Election (1) An ASC account company may choose that some or all of the credit balance in the company’s ASC account is transferred to the company’s imputation credit account.
(2) (3) (4) (5) Debit and credit The amount of the credit balance transferred is— (a) an ASC debit for the full amount of the credit balance transferred; and an imputation credit under section OB 18 (ICA trans- fer from ASC account) for the amount calculated under subsection (4).

(b) Table references The ASC debit in subsection (2)(a) is referred to in table O12: ASC debits, row 2 (transfer to imputation credit account).
The imputation credit in subsection (2)(b) is referred to in table O1: imputation credits, row 16 (transfer from ASC account).

Amount The amount of the credit to the imputation credit account is calculated using the formula— credit balance × maximum imputation ratio.
Deﬁnition of items in formula In the formula,— (a) credit balance is some or all of the credit balance in the company’s ASC account that the ASC account com- pany chooses to use: (b) maximum imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios).

Timing of election (6) An election under subsection (1) may be made at any time when the company is an imputation credit account (ICA) com- pany.
Manner of election (7) A company makes an election under subsection (1) by record- ing the credit balance transferred as— 2371 Part O s OF 5 Income Tax Act 2007 Reprinted as at 29 May 2012 (8) (a) (b) a debit in the company’s ASC account; and a credit in the company’s imputation credit account.

Debit date The debit date is— (a) (b) the day of election; or the day before the company stops being an ICA com- pany if the election is made on the occasion of cessa- tion.
Deﬁned in this Act: amount, ASC account, ASC account company, ASC debit, ICA company, imputation credit, imputation credit account, imputation ratio Compare: 2004 No 35 ss ME 4(1)(da), MJ 6 2372 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OF 5 Table O11: ASC credits Row ASC credit Credit date 1 2 Opening credit balance 1 April Amount by which ASC is more than proceeds on redemption of shares day on which shares are redeemed Table O12: ASC debits Row ASC debit Opening debit balance Debit date 1 April Transfer of credit balance to imputation credit account set out in section OF 5 1 2 Further deﬁned section OA 7 section OF 4 Further deﬁned section OA 7 section OF 5 2373 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart OJ—Policyholder credit accounts (PCA) [Repealed] Subpart OJ: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Contents Introductory provision [Repealed] Page OJ 1 General rules for companies and other persons with 2375 policyholder credit accounts [Repealed] Companies with policyholder credit accounts [Repealed] Introductory provision [Repealed] OJ 2 Policyholder credit accounts of companies [Repealed] 2376 Policyholder credits of PCA company [Repealed] PCA transfer from imputation credit account [Repealed] PCA transfer from FDP account [Repealed] PCA transfer of life insurance business [Repealed] PCA credit for maximum deﬁcit in FDP account [Repealed] PCA credit for reduced deﬁcit in FDP account [Repealed] Policyholder debits of PCA company [Repealed] OJ 3 OJ 4 OJ 5 OJ 6 OJ 7 OJ 8 PCA payment of tax relating to policyholder base [Repealed] PCA transfer to imputation credit account [Repealed] OJ 9 OJ 10 PCA transfer to group account [Repealed] OJ 11 PCA company’s transfer of life insurance business [Repealed] Persons with policyholder credit accounts [Repealed] Introductory provisions [Repealed] OJ 12 Choosing to become PCA person [Repealed] 2378 2374 2376 2376 2376 2376 2376 2377 2377 2377 2377 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OJ 1 OJ 13 Choosing to stop being PCA person [Repealed] 2378 Policyholder credits of PCA person [Repealed] OJ 14 PCA person’s equivalent credit [Repealed] OJ 15 PCA person’s credit for transfer of life insurance business [Repealed] Policyholder debits of PCA person [Repealed] OJ 16 PCA person’s payment of tax relating to policyholder base [Repealed] OJ 17 PCA person’s equivalent debit [Repealed] OJ 18 PCA person’s debit for transfer of life insurance business [Repealed] 2378 2378 2379 2379 2379 Introductory provision [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 1 General rules for companies and other persons with policyholder credit accounts [Repealed] Section OJ 1: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Companies with policyholder credit accounts [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Introductory provision [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2375 Part O s OJ 2 Income Tax Act 2007 Reprinted as at 29 May 2012 OJ 2 Policyholder credit accounts of companies [Repealed] Section OJ 2: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder credits of PCA company [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 3 PCA transfer from imputation credit account [Repealed] Section OJ 3: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 4 PCA transfer from FDP account [Repealed] Section OJ 4: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 5 PCA transfer of life insurance business [Repealed] Section OJ 5: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 6 PCA credit for maximum deﬁcit in FDP account [Repealed] Section OJ 6: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 7 PCA credit for reduced deﬁcit in FDP account [Repealed] Section OJ 7: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2376 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OJ 11 Policyholder debits of PCA company [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 8 PCA payment of tax relating to policyholder base [Repealed] Section OJ 8: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 9 PCA transfer to imputation credit account [Repealed] Section OJ 9: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 10 PCA transfer to group account [Repealed] Section OJ 10: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 11 PCA company’s transfer of life insurance business [Repealed] Section OJ 11: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Persons with policyholder credit accounts [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Introductory provisions [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2377 Part O s OJ 12 Income Tax Act 2007 Reprinted as at 29 May 2012 OJ 12 Choosing to become PCA person [Repealed] Section OJ 12: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 13 Choosing to stop being PCA person [Repealed] Section OJ 13: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Policyholder credits of PCA person [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 14 PCA person’s equivalent credit [Repealed] Section OJ 14: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 15 PCA person’s credit for transfer of life insurance business [Repealed] Section OJ 15: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder debits of PCA person [Repealed] Heading: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2378 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OJ 18 OJ 16 PCA person’s payment of tax relating to policyholder base [Repealed] Section OJ 16: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OJ 17 PCA person’s equivalent debit [Repealed] Section OJ 17: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OJ 18 PCA person’s debit for transfer of life insurance business [Repealed] Section OJ 18: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2379 Part O s OJ 18 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O13: policy holder credits [Repealed] Table O13: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O14: policyholder debits [Repealed] repealed, on 1 July 2010, by section 439(1) of the Taxation Table O14: (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O15: person’s policyholder credits [Repealed] Table O15: repealed, on 1 July 2010, by section 439(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O16: person’s policyholder debits [Repealed] Table O16: repealed, on 1 July 2010, by section 439(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2380 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OJ 18 Subpart OK—Maori authority credit accounts (MACA) Contents Introductory provision Page OK 1 General rules for Maori authorities with Maori authority 2382 credit accounts Maori authority credits OK 2 MACA payment of tax OK 3 MACA payment of tax to other Maori authorities OK 4 MACA payment of further income tax OK 4B MACA expenditure on research and development OK 5 MACA distribution with Maori authority credit OK 6 MACA dividend derived with imputation credit OK 6B MACA attributed PIE income with imputation credit OK 7 MACA dividend derived with FDP credit OK 8 MACA resident withholding tax withheld OK 9 MACA reversal of tax advantage arrangement Maori authority debits OK 10 MACA distribution OK 11 MACA allocation of provisional tax OK 12 MACA refund of income tax OK 13 MACA payment of other taxes OK 14 MACA refund of FDP OK 14B MACA refund of tax credit OK 15 MACA debit for loss of shareholder continuity OK 16 MACA breach of Maori authority credit ratio OK 17 MACA tax advantage arrangement OK 18 MACA ﬁnal balance Maori authority credits attached to distributions OK 19 Maori authority credits attached to distributions OK 20 MACA benchmark distribution rules 2383 2383 2384 2384 2385 2385 2386 2386 2386 2387 2388 2388 2388 2390 2391 2391 2392 2393 2394 2394 2395 2396 Further income tax OK 21 Further income tax for closing debit balance OK 22 Further income tax paid when Maori authority no longer 2397 2397 Maori authority OK 23 Further income tax paid satisfying liability for income tax 2398 2381 Part O s OK 1 Income Tax Act 2007 Reprinted as at 29 May 2012 OK 24 Income tax paid satisfying liability for further income tax 2399 Introductory provision OK 1 General rules for Maori authorities with Maori authority credit accounts Accounts (1) A Maori authority must maintain a Maori authority credit ac- count for a tax year.
The account is a record of Maori authority credits and Maori authority debits that arise in the account dur- ing the tax year.

Subsection (2) overrides this subsection.

(2) (3) Exclusion Subsection (1) does not apply for a period in which— (a) the constitution or rules of the Maori authority prohibit a distribution of any kind to a member; or the Maori authority derives only exempt income, disre- garding exempt income under section CW 10 (Dividend within New Zealand wholly-owned group).
(b) Credits Credits include an amount of income tax paid during a tax year, an imputation credit attached to a dividend derived by the Maori authority and, if the Maori authority is not also a foreign dividend payment account (FDPA) company, a foreign dividend payment (FDP) credit attached to a dividend derived.

Debits (4) Debits may include a refund of income tax and a Maori au- thority credit attached to a taxable Maori authority distribution paid by the Maori authority.
General rules The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to Maori authority credit accounts.
Deﬁned in this Act: amount, dividend, exempt income, FDP credit, FDPA com- pany, imputation credit, income tax, Maori authority, Maori authority credit, Maori authority credit account, Maori authority debit, member, memorandum account, pay, tax year, taxable Maori authority distribution Compare: 2004 No 35 ss MK 1, MK 3 (5) 2382 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 3 Maori authority credits OK 2 MACA payment of tax Credit (1) A Maori authority has a Maori authority credit for a payment of income tax or provisional tax.
Subsection (3) overrides this subsection.

(2) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 2 (payment of tax).
No credit (3) No credit under subsection (1) arises for— (a) (b) (c) (cb) (d) income tax paid for a tax year before the 2004–05 tax year; or income tax paid for income derived when the Maori authority was not a Maori authority; or income tax paid by a credit under section LE 1 (Tax credits for imputation credits); or income tax paid by a tax credit under subpart LA (Tax credits and other credits) and section LH 2 (Tax credits relating to expenditure on research and development); or further income tax applied under section OK 23 to pay income tax or provisional tax.
Credit date The credit date is the day the tax is paid.

Deﬁned in this Act: further income tax, income, income tax, Maori authority, Maori authority credit, pay, provisional tax, tax year Compare: 2004 No 35 s MK 4(1)(a), (2)(a) Section OK 2(3)(cb): substituted (with effect on 1 April 2008), on 6 October 2009, by section 440(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(4) OK 3 MACA payment of tax to other Maori authorities Credit (1) A Maori authority has a Maori authority credit for a payment of tax to another Maori authority that is treated as a payment transferred from company A to company B under section RC 32 (Wholly-owned groups of companies).
2383 Part O s OK 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 3 (payment of tax to another Maori authority).

Credit date The credit date is the day the tax is paid.
Deﬁned in this Act: Maori authority, Maori authority credit, pay Compare: 2004 No 35 s MK 4(1)(b), (2)(a) OK 4 MACA payment of further income tax Credit (1) A Maori authority has a Maori authority credit for a payment of further income tax under section OK 21 or OK 22.

(2) (3) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 4 (payment of further income tax).

Credit date The credit date is the day the further income tax is paid.
Deﬁned in this Act: further income tax, Maori authority, Maori authority credit, pay Compare: 2004 No 35 s MK 4(1)(c), (2)(a) OK 4B MACA expenditure on research and development Credit (1) A Maori authority has a Maori authority credit for an amount of a tax credit that the authority has under section LH 2 (Tax credits relating to expenditure on research and development).
(2) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 4B (tax credit for re- search and development expenditure).

2384 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 6 (3) Credit date The credit date is the day the authority’s return of income is ﬁled.
Deﬁned in this Act: amount, Commissioner, Maori authority credit, return of income, tax credit Compare: 2004 No 35 s MK 4(1)(gb), (2)(db) Section OK 4B: inserted, on 1 April 2008, by section 511 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

OK 5 MACA distribution with Maori authority credit Credit (1) A Maori authority has a Maori authority credit for the amount of a Maori authority credit attached to a distribution derived by the Maori authority.
(2) (3) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 5 (distribution with Maori authority credit).

Credit date The credit date is the day the distribution is made.
Deﬁned in this Act: amount, distribution, Maori authority, Maori authority credit Compare: 2004 No 35 s MK 4(1)(d), (2)(b) OK 6 MACA dividend derived with imputation credit Credit (1) A Maori authority has a Maori authority credit for the amount of an imputation credit attached to a dividend derived by the Maori authority.

(2) (3) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 6 (dividend derived with imputation credit).
Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, dividend, imputation credit, Maori authority, Maori authority credit, pay Compare: 2004 No 35 s MK 4(1)(e), (2)(c) 2385 Part O s OK 6B Income Tax Act 2007 Reprinted as at 29 May 2012 OK 6B MACA attributed PIE income with imputation credit Credit (1) A Maori authority that is an investor in a multi-rate PIE has a Maori authority credit for the amount of an imputation credit attributed to it under section HM 54 (Use of tax credits other than foreign tax credits by investors).
(2) (3) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 6B (attributed PIE income with imputation credit).

Credit date The credit date is the day the amount is attributed.
Deﬁned in this Act: amount, attributed PIE income, imputation credit, multi- rate PIE Section OK 6B: inserted (with effect on 1 April 2008), on 29 August 2011 (ap- plying for the 2008–09 and later income years), by section 117(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OK 7 MACA dividend derived with FDP credit Credit (1) A Maori authority has a Maori authority credit for the amount of an FDP credit attached to a dividend derived by the Maori authority when it is not an FDPA company.

(2) (3) Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 7 (dividend derived with FDP credit).

Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, dividend, FDP credit, FDPA company, Maori au- thority, Maori authority credit, pay Compare: 2004 No 35 s MK 4(1)(f), (2)(c) OK 8 MACA resident withholding tax withheld Credit (1) A Maori authority has a Maori authority credit for the amount of tax for resident passive income treated under section 2386 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 9 (2) (3) RA 9(1)(b) (Treatment of amounts withheld as received) as derived by the Maori authority.
Table reference The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 8 (RWT).

Credit date The credit date is the day the amount of tax is withheld.
Deﬁned in this Act: amount of tax, Maori authority, Maori authority credit, resident passive income, RWT Compare: 2004 No 35 s MK 4(1)(h), (2)(e) OK 9 MACA reversal of tax advantage arrangement (1) (2) (3) (4) When this section applies This section applies when it is established that a Maori author- ity credit in a Maori authority’s credit account was incorrectly determined to be the subject of an arrangement to obtain a tax advantage.
Credit The Maori authority has a Maori authority credit for an amount that equals the amount of a debit in the Maori authority credit account under section OK 17.

Table references The Maori authority credit in subsection (2) is referred to in table O17: Maori authority credits, row 9 (reversal of tax ad- vantage arrangement).

The Maori authority debit in subsection (2) is referred to in table O18: Maori authority debits, row 9 (tax advantage arrangement).
Credit date The credit date is the same as the debit date for the debit under section OK 17.
Deﬁned in this Act: amount, Maori authority, Maori authority credit, Maori authority credit account, Maori authority debit, tax advantage Compare: 2004 No 35 s MK 4(1)(g), (2)(d) 2387 Part O s OK 10 Income Tax Act 2007 Reprinted as at 29 May 2012 Maori authority debits OK 10 MACA distribution Debit (1) A Maori authority has a Maori authority debit for the amount of a Maori authority credit attached to a distribution made by the Maori authority.
(2) (3) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 2 (distribution).

Debit date The debit date is the day the distribution is made.
Deﬁned in this Act: amount, distribution, Maori authority, Maori authority credit, Maori authority debit Compare: 2004 No 35 s MK 5(1)(a), (2)(a) OK 11 MACA allocation of provisional tax Debit (1) A Maori authority has a Maori authority debit for an amount of provisional tax treated under section RC 32 (Wholly-owned groups of companies) as allocated by the Maori authority to another Maori authority as an underpaid company.
(2) (3) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 3 (allocation of provi- sional tax).

Debit date The debit date is the day the Commissioner is notiﬁed of the allocation.
Deﬁned in this Act: amount, Commissioner, company, Maori authority, Maori authority debit, notify, provisional tax Compare: 2004 No 35 s MK 5(1)(b), (2)(b) OK 12 MACA refund of income tax Debit (1) A Maori authority has a Maori authority debit for the amount of a refund of income tax paid to the Maori authority.

Subsec- tions (2) and (4) override this subsection.
2388 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 12 (2) (3) (4) (5) (6) (7) No debit The amount of a debit under subsection (1) does not include— a refund of income tax paid for a tax year before the (a) 2004–05 tax year; or a refund of income tax paid to the Maori authority that is no more than the debit under section OK 15; or a refund of income tax paid for a period when the Maori authority credit account was not maintained.
(b) (c) Table references The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 4 (refund of income tax).

The Maori authority debit in subsection (2)(b) is referred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).

Part-year Maori authorities If a Maori authority maintains a Maori authority credit account for only part of a tax year, the amount of the debit is calculated using the formula— account days 365 × refund.
Deﬁnition of items in formula In the formula,— (a) account days is the number of days in the tax year for which the Maori authority maintains the Maori author- ity credit account: refund is the amount of the refund.

(b) Debit date The debit date is the day the refund is made.

Relationship with section OK 14B This section does not apply to an amount that gives rise to a debit under section OK 14B.
Deﬁned in this Act: amount, income tax, Maori authority, Maori authority credit account, Maori authority debit, pay, tax year Compare: 2004 No 35 s MK 5(1)(c), (g), (2)(c) Section OK 12(7) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 441(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2389 Part O s OK 13 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OK 12(7): added (with effect on 1 April 2008), on 6 October 2009, by section 441(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OK 13 MACA payment of other taxes Debit (1) A Maori authority has a Maori authority debit for an amount of overpaid income tax applied to pay an amount due under the Inland Revenue Acts.

Subsection (2) overrides this subsection.


No debit The amount of a debit under subsection (1) does not include an amount of overpaid income tax— (a) applied to satisfy a liability for income tax or provi- sional tax; or paid for a tax year before the 2004–05 tax year; or that relates to income tax paid before a Maori authority debit arises under section OK 15 when the amount is no more than the amount of the debit for loss of shareholder continuity.
(b) (c) Table references The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 5 (payment of other taxes).

The Maori authority debit in subsection (2)(c) is re- ferred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).

Debit date The debit date is the day the amount is applied.

Relationship with section OK 14B This section does not apply to an amount that gives rise to a debit under section OK 14B.
Deﬁned in this Act: amount, income tax, income tax liability, income year, Inland Revenue Acts, Maori authority, Maori authority debit, pay, provisional tax, shareholder, tax year Compare: 2004 No 35 s MK 5(1)(j), (2)(i) Section OK 13(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 442(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OK 13(5): added (with effect on 1 April 2008), on 6 October 2009, by section 442(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

(2) (3) (4) (5) 2390 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 14B OK 14 MACA refund of FDP Debit (1) A Maori authority has a Maori authority debit for the amount of a refund of FDP paid to the Maori authority when it is not an FDPA company.
(2) (3) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 6 (refund of FDP).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, FDP, FDPA company, Maori authority, Maori authority debit, pay Compare: 2004 No 35 s MK 5(1)(e), (2)(c) OK 14B MACA refund of tax credit Debit (1) A Maori authority has a Maori authority debit for— (a) (b) (c) the amount of a transfer under section LA 6(2)(d) (Re- maining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax: the amount of a refund to the authority under section LA 6(2)(e): an amount used under section LH 2(6) (Tax credits re- lating to expenditure on research and development) to pay an amount payable under an Inland Revenue Act to the extent to which the use does not lead to a refund of income tax.
Exclusion (2) Despite subsection (1), a Maori authority that is an FDPA com- pany does not have a Maori authority debit to the extent to which the amount transferred, refunded, or used is a tax credit under subpart LF (Tax credits for FDP credits).

(3) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 6B (refund of tax credit).
2391 Part O s OK 15 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Debit date The debit date is— (a) for a debit referred to in subsection (1)(a), the day the amount is transferred: for a debit referred to in subsection (1)(b), the day the amount is refunded: for a debit referred to in subsection (1)(c), the day the amount is applied.
(b) (c) Deﬁned in this Act: amount, FDPA company, Inland Revenue Acts, Maori au- thority, Maori authority debit, pay Section OK 14B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 443(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OK 15 MACA debit for loss of shareholder continuity Debit (1) A Maori authority has a Maori authority debit for the amount of a Maori authority credit retained in the Maori authority credit account and unused at the time at which shareholder continuity is lost.

Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 7 (debit for loss of shareholder continuity).

When debit arises The debit arises at the time shareholder continuity is lost.
Deﬁned in this Act: amount, company, Maori authority, Maori authority credit, Maori authority credit account, Maori authority debit, shareholder Compare: 2004 No 35 s MK 5(1)(f), (2)(f) Section OK 15(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 93(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OK 15(3) heading: amended (with effect on 1 April 2008), on 7 De- cember 2009, by section 93(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OK 15(3): amended (with effect on 1 April 2008), on 7 December 2009, by section 93(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
(2) (3) 2392 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 16 OK 16 MACA breach of Maori authority credit ratio Debit (1) A Maori authority has a Maori authority debit for a breach in a tax year of the Maori authority credit ratio under section OK 20(3) for an amount calculated using the formula— (net distributions × Maori authority credit ratio) – credits attached.
(2) Deﬁnition of items in formula In the formula,— (a) net distributions is the total amount of all taxable Maori authority distributions made by the Maori au- thority during the tax year, excluding the amount of Maori authority credits attached to the distributions: (b) Maori authority credit ratio is the maximum permit- ted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios) or, if less, the greatest Maori authority credit ratio of all taxable Maori author- ity distributions made by the Maori authority during the tax year: credits attached is the total amount of all Maori author- ity credits attached to distributions paid by the Maori authority during the tax year.
(c) Ratio change declaration (3) A debit under subsection (1) does not arise if the Maori author- ity provides a ratio change declaration under section OK 20(5).

(4) (5) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 8 (breach of Maori authority credit ratio).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, distribution, Maori authority, Maori authority credit, Maori authority credit account, Maori authority credit ratio, Maori au- thority debit, tax year, taxable Maori authority distribution Compare: 2004 No 35 ss MK 5(1)(d), (2)(d), MK 7(5) 2393 Part O s OK 17 Income Tax Act 2007 Reprinted as at 29 May 2012 OK 17 MACA tax advantage arrangement Debit (1) A Maori authority has a Maori authority debit for the amount of a further debit for a tax advantage arrangement referred to in section GB 43(2) and (3) (Reconstruction of Maori authority credit arrangements to obtain tax advantage).
(2) (3) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 9 (tax advantage ar- rangement).

Debit date The debit date is the last day of the tax year in which the tax advantage arrangement began.
Deﬁned in this Act: amount, arrangement, Maori authority, Maori authority credit account, Maori authority debit, tax advantage, tax year Compare: 2004 No 35 s MK 5(1)(h), (2)(g) OK 18 MACA ﬁnal balance Debit (1) A Maori authority has a Maori authority debit for a credit bal- ance in the Maori authority credit account when the Maori au- thority stops being a Maori authority.
(2) (3) Table reference The Maori authority debit in subsection (1) is referred to in table O18: Maori authority debits, row 10 (ﬁnal balance).

Debit date The debit date is day the Maori authority stops being a Maori authority.
Deﬁned in this Act: Maori authority, Maori authority credit account, Maori authority debit Compare: 2004 No 35 s MK 5(1)(i), (2)(h) 2394 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 19 Maori authority credits attached to distributions OK 19 Maori authority credits attached to distributions Attaching Maori authority credits (1) When a Maori authority makes a taxable Maori authority dis- tribution, it may attach a Maori authority credit to the distri- bution.
Maori authority credit ratio (2) A distribution referred to in subsection (1) must have a Maori authority credit ratio calculated using the formula— credit attached net distribution.

(3) Deﬁnition of items in formula In the formula,— (a) credit attached is the amount of Maori authority credit attached to the distribution: net distribution is the amount of distribution made, ex- cluding the amount of Maori authority credit.
(b) Maximum permitted ratio (4) A Maori authority credit attached to a distribution must not be more than the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios).

Co-operative companies (5) A Maori authority that is also a co-operative company may at- tach a Maori authority credit to a notional distribution.
The provisions of section OB 79 (Co-operative companies attach- ing imputation credits to notional distributions) apply to the notional distribution as if references in that section to— (a) an imputation credit were a reference to a Maori author- ity credit; and an imputation credit account were a reference to a Maori authority credit account.

(b) Retrospective attachment (6) A Maori authority may retrospectively attach a Maori author- ity credit to a taxable Maori authority distribution.
2395 Part O s OK 20 Income Tax Act 2007 Reprinted as at 29 May 2012 (7) Application of other provisions The provisions of section OB 62 (Retrospective attachment of imputation credits) apply to a distribution under this section as if a reference in that section to— (a) an imputation credit were a reference to a Maori author- ity credit; and an imputation credit account were a reference to a Maori authority credit account.
(b) Deﬁned in this Act: amount, co-operative company, imputation credit, imput- ation credit account, Maori authority, Maori authority credit, Maori authority credit account, Maori authority credit ratio, maximum permitted ratio, taxable Maori authority distribution Compare: 2004 No 35 ss MK 6, MK 7(1) OK 20 MACA benchmark distribution rules (1) (2) (3) When this section applies This section applies when a Maori authority pays a taxable Maori authority distribution on more than 1 occasion during a tax year.
Benchmark distribution The ﬁrst distribution of the tax year is the benchmark distribu- tion.

Same Maori authority credit ratio The Maori authority credit ratio of a distribution made after the benchmark distribution must be the same as the Maori au- thority credit ratio of the benchmark distribution.
Debit for breach of Maori authority credit ratio (4) A breach of subsection (3) gives rise to a Maori authority debit under section OK 16 (table O18: Maori authority debits, row 8 (breach of Maori authority credit ratio)) for an amount cal- culated using the formula in section OK 16(1).
Ratio change declaration (5) A Maori authority may notify the Commissioner that the dis- tribution is not part of an arrangement to obtain a tax advantage by providing a ratio change declaration stating that the distri- bution is not part of an arrangement to which sections GB 35 and GB 36 (which relate to imputation arrangements to obtain a tax advantage) apply.
The Maori authority must provide the 2396 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 22 declaration before the distribution is made, or by a later date if the Commissioner allows.

For the purposes of this subsection, the distribution must not be part of an arrangement to obtain a tax advantage.

This subsection overrides subsection (4).
Deﬁned in this Act: amount, arrangement, benchmark distribution, Commis- sioner, Maori authority, Maori authority credit ratio, Maori authority debit, no- tify, pay, tax advantage, tax year, taxable Maori authority distribution Compare: 2004 No 35 s MK 7(2)–(4) Further income tax OK 21 Further income tax for closing debit balance Liability (1) A Maori authority is liable to pay further income tax for the amount of a debit balance in its Maori authority credit account at the end of a tax year.
(2) Due date The Maori authority must pay the further income tax to the Commissioner no later than 20 June following the end of the tax year.
Application of other provisions (3) When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994— (a) apply to further income tax as if they addressed further income tax and not income tax; and apply, modiﬁed as necessary, to ensure their application to the further income tax rather than income tax; and do not override the imputation rules and section 101 of the Tax Administration Act 1994.
(b) (c) Deﬁned in this Act: amount, Commissioner, further income tax, imputation rules, income tax, Maori authority, Maori authority credit account, pay, tax year Compare: 2004 No 35 s MK 8(1), (2), (6) OK 22 Further income tax paid when Maori authority no longer Maori authority Liability (1) A Maori authority is liable to pay further income tax for a debit balance in its Maori authority credit account immediately before the Maori authority stops being a Maori authority.
2397 Part O s OK 23 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) Due date The Maori authority must pay the further income tax to the Commissioner by the day on which the Maori authority stops being a Maori authority.

Paramount section (3) A Maori authority that stops being a Maori authority on the last day of a tax year is liable for further income tax under this section and not under section OK 21.
Application of other provisions (4) When it is appropriate for the purposes of this section, the other sections of this Act and the Tax Administration Act 1994— (a) apply to further income tax as if they addressed further income tax and not income tax; and apply, modiﬁed as necessary, to ensure their application to the further income tax rather than income tax; and do not override the imputation rules and section 101 of the Tax Administration Act 1994.
(b) (c) Deﬁned in this Act: Commissioner, further income tax, imputation rules, in- come tax, Maori authority, Maori authority credit account, pay, tax year Compare: 2004 No 35 s MK 8(3), (4), (6) OK 23 Further income tax paid satisfying liability for income tax Election (1) A Maori authority that is liable for income tax or provisional tax may choose to satisfy the liability through a payment of further income tax.
Requirements The liability referred to in subsection (1) must be for an income year corresponding to a tax year in which the Maori authority maintains a Maori authority credit account.

When treated as paid The income tax or provisional tax is treated as paid on the day the further income tax is paid to the Commissioner.
Deﬁned in this Act: Commissioner, further income tax, income tax, income year, Maori authority, Maori authority credit account, pay, provisional tax, tax year Compare: 2004 No 35 s MK 8(5) (2) (3) 2398 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 24 OK 24 Income tax paid satisfying liability for further income tax Election (1) A Maori authority that is liable for further income tax may choose to satisfy the liability through a payment of income tax.
(2) (3) Requirements The liability referred to in subsection (1) must be for an income year corresponding to a tax year in which the Maori authority maintains a Maori authority credit account.

When treated as paid The further income tax is treated as paid on the day the income tax is paid to the Commissioner.
Deﬁned in this Act: Commissioner, further income tax, income tax, income year, Maori authority, Maori authority credit account, pay, tax year Compare: 2004 No 35 s MK 8(5B) 2399 Part O s OK 24 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O17: Maori authority credits Row Maori authority credit Credit date Further deﬁned 1 2 3 4 Opening credit balance 1 April section OA 7 Provisional tax and income tax paid Tax paid to another Maori authority day of payment section OK 2 day of payment section OK 3 Further income tax paid day of payment section OK 4 4B Tax credit for research and development expenditure day return ﬁled section OK 4B.
5 6 Maori authority credit attached to distribution derived day on which distribution is paid section OK 5 Imputation credit attached to dividend derived day on which dividend is paid section OK 6 6B Attributed PIE income with imputation credit day of attribution section OK 6B 7 8 9 FDP credit attached to dividend derived when not FDP company day on which dividend is paid section OK 7 RWT withheld day on which amount withheld section OK 8 Reversal of debit for tax advantage arrangement debit date for debit section OK 9 Table O17 row 4B: inserted, on 1 April 2008, by section 512 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Table O17 row 6B: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
2400 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 24 Table O18: Maori authority debits Row Maori authority debit Debit date Further deﬁned Opening debit balance 1 April section OA 7 Maori authority credit attached to distribution paid day of distribution section OK 10 Allocation of provisional tax day of notice of allocation section OK 11 Refund of income tax day of refund section OK 12 Overpaid income tax applied to satisfy another taxation liability day of application section OK 13 Refund of FDP when not FDPA company day of refund section OK 14 6B Transfer, refund, or use of tax credit day of transfer, refund, or use section OK 14B 7 8 9 Debit for loss of shareholder continuity for Maori authority that is company time of loss of continuity section OK 15 Debit for breach of Maori authority credit ratio Debit for tax advantage arrangement 31 March section OK 16 section OK 17 last day of tax year in which arrangement began 10 Credit balance when Maori authority credit account stops day of cessation section OK 18 Table O18 row 6B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 444(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O18 row 7: amended (with effect on 1 April 2008), on 7 December 2009, by section 94 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
2401 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart OP—Memorandum accounts of consolidated groups Contents Introductory provisions OP 1 Memorandum accounts of consolidated groups OP 2 When credits and debits arise only in group accounts Consolidated groups and imputation credit accounts Introductory provisions OP 3 Changes in consolidated imputation groups OP 4 Resident imputation subgroups OP 5 When credits and debits arise only in consolidated imputation group accounts Provisions applying to consolidated imputation groups OP 6 Imputation credits of consolidated imputation groups OP 7 Consolidated ICA payment of tax OP 8 Consolidated ICA deposit in tax pooling account OP 9 Consolidated ICA transfer from tax pooling account OP 10 Consolidated ICA allocation from company with overpaid provisional tax OP 11 Consolidated ICA payment of further income tax OP 11B Consolidated ICA expenditure on research and development OP 12 Consolidated ICA dividend derived with imputation credit OP 13 Consolidated ICA dividend derived with FDP credit OP 14 Consolidated ICA payment of FDP [Repealed] OP 15 Consolidated ICA replacement payment to company under share-lending arrangement OP 16 Consolidated ICA credit transfer to company OP 17 Consolidated ICA resident withholding tax withheld OP 18 Consolidated ICA transfer from group company’s FDP account OP 19 Consolidated ICA transfer from group’s FDP account OP 20 Consolidated ICA transfer from group company’s policyholder credit account [Repealed] OP 21 Consolidated ICA transfer from group’s policyholder credit account [Repealed] OP 22 Consolidated ICA group company’s credit OP 23 Consolidated ICA elimination of double debit OP 24 Consolidated ICA reversal of tax advantage arrangement 2402 Page 2407 2408 2408 2409 2410 2411 2415 2416 2417 2418 2418 2419 2419 2420 2420 2420 2421 2421 2422 2422 2423 2423 2423 2424 2425 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 24 OP 25 Consolidated ICA non-resident withholding tax withheld OP 26 Consolidated ICA payment of
 amount of tax for schedular 2426 2427 payment OP 27 Consolidated ICA payment of schedular income tax 2427 Imputation debits of consolidated imputation groups OP 28 Consolidated ICA payment of dividend OP 29 Consolidated ICA allocation of provisional tax OP 30 Consolidated ICA refund of income tax OP 31 Consolidated ICA amount applied to pay other taxes OP 32 Consolidated ICA refund from tax pooling account OP 33 Consolidated ICA transfer within tax pooling account OP 33B Consolidated ICA debit for transfer from tax pooling account for policyholder base liability OP 34 Consolidated ICA refund of FDP OP 35 Consolidated ICA refund of tax credit OP 36 Consolidated ICA overpayment of FDP OP 37 Consolidated ICA group company’s debit OP 38 Consolidated ICA transfer for net foreign attributed income [Repealed] OP 39 Consolidated ICA replacement payment by company under share-lending arrangement OP 40 Consolidated ICA returning share transfer OP 41 Consolidated ICA credit transfer by company OP 42 Consolidated ICA debit for loss of shareholder continuity OP 43 Consolidated ICA breach of imputation ratio OP 44 Consolidated ICA debit for policyholder base imputation credits OP 45 Consolidated ICA redemption debit OP 46 Consolidated ICA tax advantage arrangement OP 47 Consolidated ICA ﬁnal balance OP 48 Consolidated ICA refund of NRWT OP 49 Consolidated ICA refund of amount of tax for schedular payment OP 50 Consolidated ICA refund of schedular income tax Consolidated groups and FDP accounts Introductory provisions OP 51 FDP accounts of consolidated FDP groups OP 52 Choosing to stop being consolidated FDP group OP 53 When group company emigrates OP 54 When credits and debits arise only in consolidated FDP group accounts 2428 2428 2429 2430 2431 2432 2433 2434 2434 2436 2436 2437 2437 2438 2438 2439 2439 2440 2441 2443 2443 2444 2444 2445 2450 2450 2451 2452 2403 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 55 Provisions applying to consolidated FDP groups FDP credits of
 consolidated FDP groups OP 56 Consolidated FDPA payment of FDP [Repealed] OP 57 Consolidated FDPA payment of further FDP [Repealed] OP 58 Consolidated FDPA dividend derived with FDP credit OP 59 Consolidated FDPA group company’s credit OP 60 Consolidated FDPA credit transfer to company OP 61 Consolidated FDPA transfer from group’s CTR account [Repealed] OP 62 Consolidated FDPA transfer for net foreign attributed income [Repealed] 2453 2453 2453 2454 2454 2455 2455 2456 OP 63 Consolidated FDPA reversal of tax advantage arrangement 2456 FDP debits of consolidated FDP groups OP 64 Consolidated FDPA payment of dividend OP 65 Consolidated FDPA credit transfer by company OP 66 Consolidated FDPA refund of FDP OP 67 Consolidated FDPA overpayment of FDP OP 68 Consolidated FDPA refund of tax credit OP 69 Consolidated FDPA transfer to imputation credit account OP 70 Consolidated FDPA transfer to group’s CTR account [Repealed] OP 71 Consolidated FDPA group company’s debit OP 72 Consolidated FDPA breach of FDP ratio OP 73 Consolidated FDPA debit for loss of shareholder continuity OP 74 Consolidated FDPA debit for policyholder base FDP credits OP 75 Consolidated FDPA breach of FDP ratio by PCA company OP 76 Consolidated FDPA tax advantage arrangement OP 77 Consolidated FDPA ﬁnal balance Consolidated groups and CTR credits [Repealed] Introductory provisions [Repealed] OP 78 CTR accounts of consolidated groups [Repealed] OP 79 When credits and debits arise only in CTR group accounts [Repealed] OP 80 Provisions applying to consolidated groups with CTR accounts [Repealed] 2456 2457 2457 2458 2459 2459 2460 2460 2461 2461 2462 2462 2463 2463 2467 2467 2467 2404 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OK 24 CTR credits of consolidated groups [Repealed] OP 81 Consolidated CTRA tax credit for conduit tax relief [Repealed] OP 82 Consolidated CTRA reduction of FDP [Repealed] OP 83 Consolidated CTRA dividend derived with CTR credit [Repealed] OP 84 Consolidated CTRA group
 company’s credit [Repealed] OP 85 Consolidated CTRA transfer from group’s FDP account [Repealed] OP 86 Consolidated CTRA reversal of tax advantage arrangement [Repealed] CTR debits of consolidated groups OP 87 Consolidated CTRA payment of dividend [Repealed] OP 88 Consolidated CTRA transfer to group’s FDP account [Repealed] OP 89 Consolidated CTRA adjustment for conduit tax relief [Repealed] OP 90 Consolidated CTRA group company’s debit [Repealed] OP 91 Consolidated CTRA increase in resident shareholding [Repealed] OP 92 Consolidated CTRA breach of CTR ratio [Repealed] OP 93 Consolidated CTRA tax advantage arrangement [Repealed] OP 94 Consolidated CTRA ﬁnal balance [Repealed] 2468 2468 2468 2468 2468 2469 2469 2469 2469 2469 2469 2470 2470 2470 Consolidated groups’ FDP payments and refunds [Repealed] OP 95 FDP payable for credits and debits in group’s CTR 2470 account [Repealed] OP 96 Refund on transfer from group’s FDP account [Repealed] 2470 Consolidated groups and branch equivalent tax accounts Introductory provisions OP 97 Branch equivalent tax accounts of consolidated BETA 2471 groups OP 98 Choosing to stop being consolidated BETA group OP 99 When credits and debits arise only in branch equivalent 2472 2472 tax group accounts [Repealed] 2405 Income Tax Act 2007 Reprinted as at 29 May 2012 Branch equivalent tax credits of consolidated BETA groups OP 100 Consolidated BETA payment of income tax on foreign 2472 income OP 101 Consolidated BETA payment of income tax OP 102 Consolidated BETA remaining debit balances [Repealed] OP 103 Consolidated BETA refund of FDP OP 104 Consolidated BETA credit for loss of shareholder 2474 2478 2478 2479 continuity Treatment by consolidated BETA groups of BETA debits from conduit relief OP 104B Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years 2480 Branch equivalent tax debits of consolidated BETA groups [Repealed] OP 105 Consolidated BETA payment of FDP [Repealed] OP 106
 Consolidated BETA reduction of FDP [Repealed] OP 107 Consolidated BETA refund of income tax [Repealed] OP 108 Consolidated BETA debit for loss of shareholder 2482 2483 2483 2483 continuity [Repealed] Debit if credit balance at beginning of ﬁrst affected income year [Repealed] OP 108B Consolidated BETA group with credit balance at 2483 beginning of ﬁrst affected income year [Repealed] Consolidated groups and policyholder credit accounts [Repealed] Introductory provision [Repealed] OP 109 Policyholder credit accounts of consolidated 2485 groups [Repealed] Policyholder credits of consolidated groups [Repealed] OP 110 Consolidated PCA transfer from imputation credit account [Repealed] OP 111 Consolidated PCA transfer from FDP account [Repealed] OP 112 Consolidated PCA group company’s credit [Repealed] OP 113 Consolidated PCA maximum deﬁcit debit in FDP 2485 2485 2486 2486 account [Repealed] 2406 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 1 OP 114 Consolidated PCA reduced deﬁcit debit in FDP 2486 account [Repealed] Policyholder debits of consolidated groups [Repealed] OP 115 Consolidated PCA payment of tax relating to policyholder 2486 base [Repealed] OP 116 Consolidated PCA transfer to imputation credit 2486 account [Repealed] Introductory provisions OP 1 Memorandum accounts of consolidated groups (1) Single company For the purposes of this Part, a consolidated group is treated as if it were a single company, and subpart FM (Consolidated groups of companies) applies to the consolidated group.
Consolidated group accounts (2) A consolidated group may be— (a) (b) required to maintain a memorandum account for a tax year; or entitled to maintain a memorandum account for a tax year.

Separate accounts (3) A consolidated group’s memorandum account is separate from the memorandum account of each company in the consolidated group.
(4) (5) General rules The general rules on memorandum accounts set out in sections OA 2 and OA 3 (which relate to the treatment of memorandum accounts) apply to a memorandum account of a consolidated group.

Tables The credits and debits that arise in a memorandum account are listed in tables set out at the end of this subpart.
The tables— (a) (b) state the credits and the debits; and state the credit dates and debit dates when the credits and debits arise; and 2407 Part O s OP 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) refer to the section that fully deﬁnes them, and provides the credit dates and debit dates for each credit and debit.
Deﬁned in this Act: company, consolidated group, memorandum account, tax year Compare: 2004 No 35 ss ME 10, ME 25, MF 7(2), MG 13, MI 14 OP 2 When credits and debits arise only in group accounts Credits only in group account (1) A credit may arise only in the memorandum account of a consolidated group and not in the memorandum account of a group company, unless another provision expressly states otherwise.
Debits only in group account (2) A debit may arise only in the memorandum account of a consolidated group and not in the memorandum account of a group company, unless another provision expressly states otherwise.

(3) (4) Particular credits and debits The credit referred to in subsection (1) and the debit referred to in subsection (2) are listed in provisions in this subpart.
Company’s obligation overridden This section applies despite— (a) (b) the obligation that a group company may have under this Part to record a credit or debit; and the fact that the credit and debit referred to in this section may otherwise be eligible to give rise to a credit or debit in the group company’s account.
Deﬁned in this Act: company, consolidated group, memorandum account Compare: 2004 No 35 ss ME 13, ME 27, MF 9, MG 16, MI 19 Consolidated groups and imputation credit accounts Introductory provisions OP 3 Changes in consolidated imputation groups New group company (1) A consolidated group that is a consolidated imputation group continues to have the same imputation credit account if the 2408 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 4 group starts an imputation group with a company that is not part of another consolidated group.
(2) Combining consolidated imputation groups The companies that are part of 2 or more consolidated im- putation groups that choose to combine to form 1 imputation group must record in the imputation credit account of the new group— (a) all credits and debits in the imputation credit accounts of the 2 groups immediately before the election takes effect; and all credits and debits that arise for a group company that is part of the new group on and after the election takes effect.
(b) Imputation group becoming consolidated group (3) An imputation group continues to use its imputation credit ac- count if the companies that are part of the imputation group choose to convert their status to that of a consolidated group that is a consolidated imputation group.

(4) Opening balances The opening balances for the imputation credit account of the consolidated imputation group referred to in subsection (3) are set out in section OA 7 (Opening balances of memorandum accounts).
Deﬁned in this Act: company, consolidated group, consolidated imputation group, imputation credit account, imputation group Compare: 2004 No 35 s ME 10(1A), (1B), (1D) OP 4 Resident imputation subgroups (1) (2) Subgroup of trans-Tasman imputation group The resident imputation subgroup of a trans-Tasman imput- ation group must record in its imputation credit account the credits and debits described in subsection (2).
Eligible credits and debits The credits and debits referred to in subsection (1) are those that arise in the imputation credit account of the subgroup’s trans-Tasman imputation group in relation to a company that— will be part of the subgroup if the credit or debit arises (a) before the subgroup is formed; or 2409 Part O s OP 5 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) is part of the subgroup if the credit or debit arises when or after the subgroup is formed.
Deﬁned in this Act: company, imputation credit account, imputation group, resident imputation subgroup, trans-Tasman imputation group Compare: 2004 No 35 s ME 10(1C) OP 5 When credits and debits arise only in consolidated imputation group accounts Credits only in group account (1) A credit listed in subsection (2) arises only in the imputation credit account of a consolidated imputation group and not in the imputation credit account of a group company.
(2) Particular credits The credit referred to in subsection (1) is a credit under the following sections and described in the following rows of table O19: imputation credits of consolidated imputation groups: (a) (b) (bb) section OP 7, row 2 (payment of tax): section OP 8, row 3 (deposit in tax pooling account): section OP 11B, row 6B (tax credit for research and development expenditure): section OP 12, row 7 (dividend derived with imputation credit): section OP 13, row 8 (dividend derived with FDP credit).
[Repealed] (c) (d) (e) Debits only in the group account (3) A debit listed in subsection (4) arises only in the imputation credit account of a consolidated imputation group and not in the imputation credit account of a group company.
Particular debits The debit referred to in subsection (3) is a debit under the fol- lowing sections and described in the following rows of table O20: imputation debits of consolidated imputation groups: section OP 28, row 2 (payment of dividend): (a) section OP 30, row 4 (refund of income tax): (b) section OP 32, row 6 (refund from tax pooling account): (c) section OP 33, row 7 (transfer within tax pooling ac- (d) count): (4) 2410 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 6 (db) (e) (f) (g) (h) (i) (j) (k) (l) section OP 33B, row 7B (debit for transfer from tax pooling account for policyholder base liability): section OP 34, row 8 (refund of FDP): section OP 35, row 9 (refund of tax credit): section OP 37, row 11 (group company’s debit): section OP 39, row 13 (replacement payment under share-lending arrangement): section OP 40, row 14 (returning share transfer): section OP 41, row 15 (credit transfer): section OP 43, row 17 (breach of imputation ratio): section OP 44, row 18 (debit for policyholder base im- putation credits).
Deﬁned in this Act: company, consolidated imputation group, imputation credit, imputation credit account, imputation debit Compare: 2004 No 35 s ME 12(1) Section OP 5(2)(bb): inserted, on 1 April 2008, by section 513 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OP 5(2)(d): amended (with effect on 1 April 2009), on 6 October 2009, by section 445(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 5(2)(e): repealed (with effect on 1 April 2009), on 6 October 2009, by section 445(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 5(4)(d): amended (with effect on 1 April 2008), on 7 September 2010, by section 105 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 5(4)(db): inserted, on 1 July 2010, by section 445(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 5(4)(k): amended, on 1 July 2010, by section 445(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 5(4)(l): added, on 1 July 2010, by section 445(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 6 Provisions applying to consolidated imputation groups (1) Single company, tax liabilities The provisions listed in subsection (2) apply, modiﬁed as ne- cessary, to a consolidated imputation group and to the imput- ation credit account of the group as if— (a) the group were a single company; and 2411 Part O s OP 6 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) a reference to a company’s liability for further income tax, late payment penalty, or imputation penalty tax were a reference to a joint and several liability owed by group companies when the tax or penalty becomes payable.
Other provisions The provisions are— (a) (ab) section OB 61 (ICA benchmark dividend rules); and sections OB 65 and OB 66 (which relate to further in- come tax); and sections OB 71 and OB 72 (which relate to imputation additional tax); and sections 97, 101, 139B, 140B, 140D, and 180 of the Tax Administration Act 1994.

(ac) (b) Consolidation provisions Sections FM 4 and FM 5 (which relate to the liabilities of group companies) override subsection (1)(b).
Tax advantage arrangements and determinations Sections GB 35 and GB 36 (which relate to tax advantage arrangements), LE 1(5) (Tax credits for imputation credits), OA 2(5) (Memorandum accounts), and sections 90AF and 104B of the Tax Administration Act 1994 apply, modiﬁed as necessary, in a case that involves accounts of a consolidated imputation group as if— (a) (b) the group were a single company; and references to the provisions of this Act or the Tax Administration Act 1994 were references to the equiva- lent provisions applicable to the equivalent accounts.
Refunds for overpaid amounts Sections RM 13 to RM 17, RM 32, and RZ 6 (which relate to limits on refunds) apply, modiﬁed as necessary, in relation to income tax paid by a consolidated imputation group as if— (a) (b) the group were a single company; and a reference to that company when it stops being an ICA company were a reference to the consolidated group when it stops being a consolidated imputation group; and (2) (3) (4) (5) 2412 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 6 (c) references to the provisions of this Act or the Tax Administration Act 1994 were references to the equiva- lent provisions applicable to the equivalent accounts.
Limits on refunds (6) Despite subsection (5), sections RM 13 to RM 17, RM 32, and RZ 6 do not apply to limit a refund payable to a company that is part of a consolidated imputation group in relation to income tax paid individually by the company to the extent to which those sections would not have limited the refund if it had been a refund payable to the group in relation to income tax paid by the group.
However, if an amount is refunded and would not have been payable but for this subsection, section RM 15(1) (Changes in credit balances) applies as if the refund were made in relation to income tax paid by the group.

(7) Applying for refunds If a company that is part of an imputation group is entitled to a refund under sections RM 2 or RM 4 to RM 6 (which relate to refunds for overpaid income tax), the company must apply for a refund by notifying the Commissioner.
Sections RM 13 to RM 17, RM 32, and RZ 6 apply to the entitlement as if— the imputation credit account of the group were the im- (a) putation credit account of the company: a credit in the imputation credit account for the purposes of those sections were reduced by the amount of a re- fund to a company that is part of the group.
(b) Deﬁned in this Act: Commissioner, company, consolidated group, consolidated imputation group, further income tax, ICA company, imputation additional tax, imputation credit account, imputation group, imputation penalty tax, income tax, notify, pay, tax Compare: 2004 No 35 s ME 14(3) Section OP 6(2)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 446(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6(2)(ab): inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6(2)(ac): inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2413 Part O s OP 6 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OP 6(4) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6(4): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section OP 6(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6(5): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section OP 6(6) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6(6): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section OP 6(7) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6(7): added (with effect on 1 April 2008), on 6 October 2009, by section 446(2) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section OP 6 list of deﬁned terms Commissioner: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6 list of deﬁned terms consolidated group: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of deﬁned terms ICA company: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6 list of deﬁned terms imputation additional tax: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 6 list of deﬁned terms imputation group: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6 list of deﬁned terms income tax: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2414 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 7 Section OP 6 list of deﬁned terms notify: inserted (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 6 list of deﬁned terms tax: added (with effect on 1 April 2008), on 6 October 2009, by section 446(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Imputation credits of consolidated imputation groups OP 7 Consolidated ICA payment of tax Credit (1) A consolidated imputation group has an imputation credit for a payment of income tax.

Subsection (3) overrides this sub- section.

(2) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 2 (payment of tax).
No credit (3) A consolidated imputation group does not have an imputation credit for an amount of— (a) (b) (c) (d) (e) (f) (fb) income tax paid as a trustee, unless paid on category A income; or a transfer from a tax pooling account to a tax account with the Commissioner; or income tax paid on income derived by a company that is not an imputation credit account (ICA) company; or income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policyholder base in- come; or income tax paid under section LE 1 (Tax credits for imputation credits) by crediting an imputation credit; or income tax paid under section LF 1 (Tax credits for FDP credits) by crediting a foreign dividend payment (FDP) credit; or income tax paid by a tax credit under subpart LA (Tax credits and other credits) and section LH 2 (Tax credits relating to expenditure on research and development); or 2415 Part O s OP 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) (g) (h) (i) income tax paid by crediting an amount under subpart LP (Tax credits for supplementary dividends); or further income tax applied under section OB 65 or OB 66 (which relate to further income tax) to pay income tax or provisional tax; or income tax paid by crediting further income tax under section OB 69(3) (Further income tax paid satisfying liability for income tax).
Credit date The credit date is the day the tax is paid.
Deﬁned in this Act: amount, category A income, Commissioner, company, con- solidated imputation group, FDP credit, further income tax, ICA company, im- putation credit, imputation credit account, income, income tax, life insurer, pay, provisional tax, schedular income tax liability, schedular policyholder base in- come, tax account with the Commissioner, tax pooling account, tax year, trustee Compare: 2004 No 35 s ME 11(1)(a), (2)(a) Section OP 7(3)(d): substituted, on 1 July 2010, by section 447(1) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 7(3)(fb): substituted (with effect on 1 April 2008), on 6 October 2009, by section 447(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 7 list of deﬁned terms policyholder base income tax liability: re- pealed, on 1 July 2010, by section 447(3)(a) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 7 list of deﬁned terms schedular income tax liability: inserted, on 1 July 2010, by section 447(3)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 7 list of deﬁned terms schedular policyholder base income: in- serted, on 1 July 2010, by section 447(3)(b) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 8 Consolidated ICA deposit in tax pooling account Credit (1) A consolidated imputation group has an imputation credit for an amount provided by it and paid by an intermediary into a tax pooling account.

Table reference The imputation credit in subsection (1) is referred to in table imputation credits of consolidated imputation groups, O19: row 3 (deposit in tax pooling account).
(2) 2416 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 9 (3) Credit date The credit date is the day the amount is deposited.
Deﬁned in this Act: amount, consolidated imputation group, imputation credit, intermediary, pay, tax pooling account Compare: 2004 No 35 s ME 11(1)(aa), (2)(aa) OP 9 Consolidated ICA transfer from tax pooling account Credit (1) A consolidated imputation group has an imputation credit for an amount representing an entitlement to funds held in a tax pooling account if the intermediary transfers the entitlement from another person to the group.
Table reference The imputation credit in subsection (1) is referred to in table imputation credits of consolidated imputation groups, O19: row 4 (transfer from tax pooling account).
(2) (3) Credit date The credit date is,— (a) for an entitlement to funds that are transferred by the intermediary from the tax pooling account to the group’s tax account with the Commissioner, the credit date under section RP 19 (Transfers from tax pooling accounts) for the amount transferred; or for an entitlement to funds that are refunded by the inter- mediary from the tax pooling account to the group, the date of the refund; or for an entitlement that is transferred by the intermediary from the group to another person, the date of the trans- fer.
(b) (c) Deﬁned in this Act: amount, Commissioner, consolidated imputation group, imputation credit, intermediary, tax account with the Commissioner, tax pool- ing account Compare: 2004 No 35 s ME 11(1)(ab), (2)(ab) Section OP 9(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 106(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 9(3): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 106(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
2417 Part O s OP 10 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 10 Consolidated ICA allocation from company with overpaid provisional tax Credit (1) A consolidated imputation group has an imputation credit for an amount allocated under section RC 32 (Wholly-owned groups of companies) by a company that has overpaid its provisional tax.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 5 (allocation from excess company).

Credit date The credit date is the day the Commissioner is notiﬁed of the allocation.
Deﬁned in this Act: amount, Commissioner, company, consolidated imputation group, imputation credit, notify Compare: 2004 No 35 s ME 11(1)(b), (2)(b) OP 11 Consolidated ICA payment of further income tax Credit (1) A consolidated imputation group has an imputation credit for an amount of further income tax paid under section OB 65 or OB 66 (which relate to further income tax).
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table imputation credits of consolidated imputation groups, O19: row 6 (payment of further income tax).

Credit date The credit date is the day the further income tax is paid.
Deﬁned in this Act: amount, consolidated imputation group, further income tax, imputation credit, pay Compare: 2004 No 35 s ME 11(1)(c), (2)(a) 2418 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 12 OP 11B Consolidated ICA expenditure on research and development Credit (1) A consolidated imputation group has an imputation credit for an amount of a tax credit that a group company has under sec- tion LH 2 (Tax credits relating to expenditure on research and development).
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated groups, row 6B (tax credit for research and development expenditure).

Credit date The credit date is the day the return of income relating to the amount, is ﬁled.
Deﬁned in this Act: amount, Commissioner, company, consolidated imputation group, imputation credit, return of income, tax credit Compare: 2004 No 35 s ME 11(1)(ib), (2)(db) Section OP 11B: inserted, on 1 April 2008, by section 515 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
OP 12 Consolidated ICA dividend derived with imputation credit Credit (1) A consolidated imputation group has an imputation credit for the amount of an imputation credit attached to a dividend de- rived by a group company.

(2) (3) Table reference The imputation credit in subsection (1) is referred to in table imputation credits of consolidated imputation groups, O19: row 7 (dividend derived with imputation credit).

Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, company, consolidated imputation group, divi- dend, imputation credit, pay Compare: 2004 No 35 s ME 11(1)(d), (2)(c) 2419 Part O s OP 13 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 13 Consolidated ICA dividend derived with FDP credit Credit (1) A consolidated imputation group has an imputation credit for the amount of an FDP credit attached to a dividend derived by a group company that— (a) is part of a consolidated group without an FDP account; or does not have an FDP account and is not part of a con- solidated group.
(b) (2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 8 (dividend derived with FDP credit).

Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, company, consolidated group, consolidated im- putation group, dividend, FDP account, FDP credit, imputation credit, pay Compare: 2004 No 35 s ME 11(1)(e), (2)(c) OP 14 Consolidated ICA payment of FDP [Repealed] Section OP 14: repealed (with effect on 30 June 2009), on 6 October 2009, by section 448(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 15 Consolidated ICA replacement payment to company under share-lending arrangement Credit (1) A consolidated imputation group has an imputation credit for the amount of an imputation credit attached under section OB 64 (Replacement payments) or treated as attached under section RE 25 (When amount of tax treated as imputation credit) to a replacement payment paid under a share-lending arrangement to a company that is part of the consolidated imputation group at the date of payment.
Table reference The imputation credit in subsection (1) is referred to in table imputation credits of consolidated imputation groups, O19: (2) 2420 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 17 row 10 (replacement payment under share-lending arrange- ment).

(3) Credit date The credit date is the day the replacement payment is paid.
Deﬁned in this Act: amount, company, consolidated imputation group, imput- ation credit, pay, replacement payment, share-lending arrangement Compare: 2004 No 35 s ME 11(1)(eb), (ec), (2)(cb) OP 16 Consolidated ICA credit transfer to company Credit (1) A consolidated imputation group has an imputation credit for the amount of an imputation credit shown in a credit transfer notice given to a company that is part of the consolidated im- putation group when the notice is given.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 11 (credit transfer).

Credit date The credit date is the day the notice is given.
Deﬁned in this Act: amount, company, consolidated imputation group, credit transfer notice, imputation credit Compare: 2004 No 35 s ME 11(1)(ed), (2)(cc) OP 17 Consolidated ICA resident withholding tax withheld Credit (1) A consolidated imputation group has an imputation credit for resident withholding tax (RWT) that is treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by a group company other than as policyholder base income.
(2) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 12 (RWT withheld).

2421 Part O s OP 18 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Credit date The credit date is the day the interest or dividend relating to the resident passive income is paid.
Deﬁned in this Act: company, consolidated imputation group, dividend, imput- ation credit, interest, pay, policyholder base income, resident passive income, RWT Compare: 2004 No 35 s ME 11(1)(j), (2)(c) Section OP 17(1): amended, on 1 July 2010, by section 449(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 17 list of deﬁned terms policyholder base income: inserted, on 1 July 2010, by section 449(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 18 Consolidated ICA transfer from group company’s FDP account Credit (1) A consolidated imputation group has an imputation credit for an amount equal to the amount of an FDP debit under sec- tion OC 18 (FDPA transfer to imputation credit account) trans- ferred from the FDP account of a group company.
(2) (3) Table references The imputation credit in subsection (1) is referred to in table imputation credits of consolidated imputation groups, O19: row 13 (transfer from group company’s FDP account).

The FDP debit in subsection (1) is referred to in table O4: FDP debits, row 7 (transfer to imputation credit account).

Credit date The credit date is the same as the debit date for the transfer.
Deﬁned in this Act: amount, company, consolidated imputation group, FDP account, FDP debit, imputation credit Compare: 2004 No 35 s ME 11(1)(fb), (2)(fb) OP 19 Consolidated ICA transfer from group’s FDP account Credit (1) A consolidated imputation group has an imputation credit for an amount equal to the amount transferred under section FM 30(3) and (4) (Application of certain provisions to con- solidated groups) from the FDP account of a consolidated group.
2422 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 22 (2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 14 (transfer from consolidated group’s FDP account).

Credit date The credit date is the same as the debit date for the transfer.
Deﬁned in this Act: amount, consolidated group, consolidated imputation group, FDP account, imputation credit Compare: 2004 No 35 s ME 11(1)(g), (2)(d) OP 20 Consolidated ICA transfer from group company’s policyholder credit account [Repealed] Section OP 20: repealed, on 1 July 2010, by section 450(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 21 Consolidated ICA transfer from group’s policyholder credit account [Repealed] Section OP 21: repealed, on 1 July 2010, by section 451(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 22 Consolidated ICA group company’s credit Credit (1) A consolidated imputation group has an imputation credit for the amount of a credit that arises when— (a) an imputation credit described in a row of table O1: im- putation credits, arises in the imputation credit account of a group company; and an imputation debit described in a row of table O20: imputation debits of consolidated imputation groups, arises in the imputation credit account of the group; and the debit is not offset by a credit arising in the group account before or on the same date on which the credit arose in the group company’s account.
(b) (c) 2423 Part O s OP 23 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (4) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 17 (group company’s credit).
(b) (c) Offsetting debits For the purposes of subsection (1)(c), to determine whether a debit has been offset by a credit in the group account,— (a) credits are treated as reducing debits in the order in which the credits arise; and a credit, whether some or all, is counted only once in determining whether a debit has been offset; and credits in the accounts of more than 1 group company become a credit to the group account— (i) (ii) in the order of their credit date; and as chosen by the group, if credits arise on the same credit date; and on a pro rata basis, if no election is made under subparagraph (ii).
(iii) Credit date The credit date is the same as the debit date for the debit to the group account.

Deﬁned in this Act: amount, company, consolidated imputation group, imput- ation credit, imputation credit account, imputation debit Compare: 2004 No 35 s ME 13(2), (3) Section OP 22(2): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OP 23 Consolidated ICA elimination of double debit When this section applies This section applies when an imputation debit in a consoli- dated imputation group’s imputation credit account under sec- tion OP 42 has the effect of cancelling an imputation credit under section OP 8. Credit The consolidated imputation group has an imputation credit for an amount that equals the amount of the debit referred to in subsection (1), and either— (1) (2) 2424 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 24 (a) (b) another debit arises under section OP 32 for a refund or transfer of the deposit on a debit date that is after the debit date for the debit for loss of shareholder continu- ity; or the deposit is taken into account under sections RP 19 and RP 20 (which relate to transfers from tax pooling accounts) in determining the balance of the company’s tax account with the Commissioner after the debit date for the debit for loss of shareholder continuity.
(3) (4) Table references The table references are as follows: (a) the imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imput- ation groups, row 16 (debit for loss of shareholder con- tinuity): the imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imput- ation groups, row 3 (deposit in tax pooling account): the imputation credit in subsection (2) is referred to in table O19: imputation credits of consolidated imput- ation groups, row 18 (elimination of double debit): the imputation debit in subsection (2)(a) is referred to in table O20: imputation debits of consolidated imput- ation groups, row 6 (refund from tax pooling account).
(b) (c) (d) Credit date The credit date is the day— (a) (b) the deposit is refunded; or a credit arises in the company’s tax account with the Commissioner.
Deﬁned in this Act: amount, Commissioner, company, consolidated imputation group, deposit, imputation credit, imputation credit account, imputation debit, shareholder, tax account with the Commissioner Compare: 2004 No 35 s ME 11(1A), (2A) OP 24 Consolidated ICA reversal of tax advantage arrangement (1) When this section applies This section applies when it is established that an imputation credit in a consolidated imputation group’s imputation credit 2425 Part O s OP 25 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (4) account was incorrectly determined to be the subject of an ar- rangement to obtain a tax advantage.
Credit The consolidated imputation group has an imputation credit for an amount equal to the amount of a debit in the group’s account under section OP 46.

Table references The imputation credit in subsection (2) is referred to in table O19: imputation credits of consolidated imputation groups, row 19 (reversal of tax advantage arrangement).

The imput- ation debit in subsection (2) is referred to in table O20: imput- ation debits of consolidated imputation groups, row 20 (tax advantage arrangement).
Credit date The credit date is the same as the debit date for the debit.
Deﬁned in this Act: amount, consolidated imputation group, imputation credit, imputation debit, tax advantage Compare: 2004 No 35 s ME 11(1)(i), (2)(e) OP 25 Consolidated ICA non-resident withholding tax withheld Credit (1) A consolidated imputation group that includes an Australian ICA company has an imputation credit for an amount of non- resident passive income derived by the company from which non-resident withholding tax (NRWT) is withheld.
Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 20 (NRWT paid).

Credit date The credit date is the day the amount of tax is withheld.
Deﬁned in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, non-resident passive income, NRWT, pay Compare: 2004 No 35 s ME 11(1B)(a), (2B)(a) (2) (3) 2426 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 27 OP 26 Consolidated ICA payment of amount of tax for schedular payment Credit (1) A consolidated imputation group that includes an Australian ICA company has an imputation credit for the amount of tax for a schedular payment paid to the company as a non-resident contractor.
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 21 (amount of tax for schedular payment).

Credit date The credit date is the day the amount of tax is withheld.
Deﬁned in this Act: amount of tax, Australian ICA company, consolidated im- putation group, imputation credit, non-resident contractor, schedular payment Compare: 2004 No 35 s ME 11(1B)(b), (2B)(b) OP 27 Consolidated ICA payment of schedular income tax Credit (1) A consolidated imputation group that includes an Australian ICA company has an imputation credit for the amount of a payment by the company of schedular income tax for income derived under section CR 3, CV 16, or CV 17 (which relate to non-resident insurers, shippers, and ﬁlm renters).
(2) (3) Table reference The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 22 (payment of schedular income tax).

Credit date The credit date is the day the schedular income tax is paid.
Deﬁned in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, imputation credit account, income, pay, schedular in- come tax Compare: 2004 No 35 s ME 11(1B)(c), (2B)(c) 2427 Part O s OP 28 Income Tax Act 2007 Reprinted as at 29 May 2012 Imputation debits of consolidated imputation groups OP 28 Consolidated ICA payment of dividend Debit (1) A consolidated imputation group has an imputation debit for an amount that equals the amount of an imputation credit at- tached to a dividend paid by a group company.
(2) (3) (4) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 2 (payment of dividend).

Debit date The debit date is the day the dividend is paid.

Arrangement for dividend from another country Section GB 38 (When sections GB 35 to GB 37 apply to con- solidated groups) may apply to treat an amount as a debit under this section.
Deﬁned in this Act: amount, company, consolidated imputation group, divi- dend, imputation credit, imputation debit, pay Compare: 2004 No 35 s ME 12(1)(a), (2)(a) OP 29 Consolidated ICA allocation of provisional tax Debit (1) A consolidated imputation group has an imputation debit for an amount of provisional tax allocated by the group under sec- tion RC 32 (Wholly-owned groups of companies) to an under- paid company.
Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 3 (allocation of provisional tax).

Debit date The debit date is the day the Commissioner is notiﬁed of the allocation.
Deﬁned in this Act: amount, Commissioner, company, consolidated imputation group, imputation debit, notify, provisional tax Compare: 2004 No 35 s ME 12(1)(c), (2)(c) (2) (3) 2428 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 30 OP 30 Consolidated ICA refund of income tax Debit (1) A consolidated imputation group has an imputation debit for the amount of a refund of income tax or provisional tax paid to the group.

Subsection (2) overrides this subsection.


(2) (3) (4) (5) No debit The debit in subsection (1) does not include–– (a) a refund of income tax paid by a life insurer to satisfy its schedular income tax liability for schedular policy- holder base income; or a refund of income tax paid before a debit arises under section OP 42 to the extent to which the amount of the refund is less than the amount of the debit.
(b) Table references The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 4 (refund of income tax).

The imputation debit in sub- section (2)(b) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).

Debit date The debit date is the day the refund is made.
Relationship with section OP 35 This section does not apply to an amount that gives rise to a debit under section OP 35.
Deﬁned in this Act: amount, consolidated imputation group, imputation debit, income tax, life insurer, pay, provisional tax, schedular income tax liability, schedular policyholder base income Compare: 2004 No 35 s ME 12(1)(d), (2)(d) Section OP 30(2) heading: substituted, on 1 July 2010, by section 452(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30(2): substituted, on 1 July 2010, by section 452(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 30(3): amended, on 1 July 2010, by section 452(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2429 Part O s OP 31 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OP 30(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 452(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 30(5): added (with effect on 1 April 2008), on 6 October 2009, by section 452(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30 list of deﬁned terms life insurer: inserted, on 1 July 2010, by section 452(4) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section OP 30 list of deﬁned terms schedular income tax liability: added, on 1 July 2010, by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 30 list of deﬁned terms schedular policyholder base income: added, on 1 July 2010, by section 452(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 31 Consolidated ICA amount applied to pay other taxes Debit (1) A consolidated imputation group has an imputation debit for an amount of overpaid income tax that is applied to pay an amount due under the Inland Revenue Acts.

Subsection (2) overrides this subsection.


(2) (3) No debit The debit referred to in subsection (1) does not include over- paid income tax to the extent to which it is— (a) (b) applied to satisfy an income tax liability; or for an amount paid before an imputation debit arises under section OP 42, no more than the debit for loss of shareholder continuity.
Table references The imputation debit in subsection (1) is referred to in table imputation debits of consolidated imputation groups, O20: row 5 (amount applied to pay other taxes).

The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 16 (debit for loss of shareholder continuity).

Debit date The debit date is the day the amount is applied.
(4) 2430 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 32 (5) Relationship with section OP 35 This section does not apply to an amount that gives rise to a debit under section OP 35.
Deﬁned in this Act: amount, company, consolidated imputation group, imput- ation debit, income tax, income tax liability, Inland Revenue Acts, pay, share- holder Compare: 2004 No 35 s ME 12(1)(l), (2)(k) Section OP 31(5) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 453(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 31(5): added (with effect on 1 April 2008), on 6 October 2009, by section 453(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 32 Consolidated ICA refund from tax pooling account (1) (2) (3) (4) When this section applies This section applies for a consolidated imputation group when— (a) the group has an entitlement to an amount in a tax pool- ing account and has an imputation credit for the entitle- ment under sections OP 8 and OP 9; and the intermediary refunds the amount from the tax pool- ing account to the group.
(b) Debit The consolidated imputation group has an imputation debit for the tax year for the amount of the refund.

Table references The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 3 (deposit in tax pooling account) or row 4 (transfer from tax pooling account).

The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 6 (refund from tax pooling account).
Debit date The debit date for the debit is— (a) the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date: 2431 Part O s OP 33 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) the day the refund is made to the extent of the remain- ing amount of the debit that is no more than the credit balance in the imputation credit account on the day of refund: the last day of the previous tax year for the remainder of the imputation debit.
Deﬁned in this Act: amount, consolidated imputation group, deposit, imput- ation credit, imputation credit account, imputation debit, intermediary, pay, tax pooling account, tax year Compare: 2004 No 35 s ME 12(1)(da), (2)(da) Section OP 32(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 107(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 33 Consolidated ICA transfer within tax pooling account (1) (2) (3) (4) When this section applies This section applies for a consolidated imputation group when— (a) the group has an entitlement to an amount in a tax pool- ing account and has an imputation credit for the entitle- ment under sections OP 8 and OP 9; and the intermediary transfers the entitlement from the group to another person.

(b) Debit The consolidated imputation group has an imputation debit for the amount of the transfer.
Table reference The imputation debit in subsection (2) is referred to in table O20: imputation debits of consolidated imputation groups, row 7 (transfer to tax pooling account).
Debit date The debit date for the debit is— (a) the last day of the previous tax year to the extent of the amount of the debit that is no more than the credit balance in the imputation credit account on that date: the day the transfer is made to the extent of the remain- ing amount of the debit that is no more than the credit (b) 2432 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 33B balance in the imputation credit account on the day of transfer: the last day of the previous tax year for the remainder of the imputation debit.
(c) Deﬁned in this Act: amount, consolidated imputation group, imputation credit, imputation credit account, imputation debit, tax pooling account, tax year Compare: 2004 No 35 s ME 12(1)(db), (2)(da) Section OP 33 heading: substituted (with effect on 1 April 2008), on 7 Septem- ber 2010, by section 108(1) of the Taxation (Annual Rates, Trans-Tasman Sav- ings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 33(1): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 108(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section OP 33(4)(b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 108(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 33B Consolidated ICA debit for transfer from tax pooling account for policyholder base liability Debit (1) A consolidated imputation group has an imputation debit for the amount transferred from a tax pooling account to their tax account with the Commissioner, to the extent to which the amount satisﬁes its schedular income tax liability for schedu- lar policyholder base income or its income tax liability for a life fund PIE that is a multi-rate PIE.
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 7B (debit for transfer from tax pooling account for pol- icyholder base liability).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: ICA company, imputation credit, imputation debit, life insurer, schedular income tax liability, schedular policyholder base income, tax year Section OP 33B: inserted, on 1 July 2010, by section 454(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2433 Part O s OP 34 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 34 Consolidated ICA refund of FDP Debit (1) A consolidated imputation group has an imputation debit for the amount of a refund of FDP that relates to a dividend derived by a group company at a time when— (a) the group company is part of a consolidated group with- out an FDP account; or the group company does not have an FDP account and is not part of a consolidated group.
(b) (2) (3) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 8 (refund of FDP).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, company, consolidated group, consolidated im- putation group, dividend, FDP, FDP account, imputation debit Compare: 2004 No 35 s ME 12(1)(f), (2)(d) OP 35 Consolidated ICA refund of tax credit Debit (a) (1) A consolidated imputation group has an imputation debit for— the amount of a transfer under section LA 6(2)(d) (Re- maining refundable credits: PAYE, RWT, and certain other items) to the extent to which the transfer does not lead to a refund of income tax: the amount of a refund under section LA 6(2)(e): an amount used under section LH 2(6) (Tax credits re- lating to expenditure on research and development) to pay an amount payable under an Inland Revenue Act to the extent to which the use does not lead to a refund of income tax.
(b) (c) Exclusion (1B) Despite subsection (1), a consolidated imputation group does not have an imputation debit to the extent to which— (a) the amount transferred, refunded, or used is a tax credit for a payment of FDP relating to a dividend derived by a group company; and 2434 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 35 (2) (3) (b) the dividend was derived when the company— (i) had an FDP account and was not part of a con- solidated group; or (ii) was part of a consolidated group with an FDP account.
Table reference The imputation debit in subsection (1) is referred to in table imputation debits of consolidated imputation groups, O20: row 9 (refund of tax credit).

Debit date The debit date is— (a) for a debit referred to in subsection (1)(a), the day the amount is transferred: for a debit referred to in subsection (1)(b), the day the amount is refunded: for a debit referred to in subsection (1)(c), the day the amount is applied.
(b) (c) Deﬁned in this Act: amount, company, consolidated group, consolidated im- putation group, dividend, FDP, FDP account, imputation debit, pay, tax credit Compare: 2004 No 35 s ME 12(1)(f), (2)(d) Section OP 35(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 455(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 35(1B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 455(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 35(1B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 455(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 35(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 455(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 35 list of deﬁned terms FDP: inserted (with effect on 1 April 2008), on 6 October 2009, by section 455(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 35 list of deﬁned terms pay: added (with effect on 1 April 2008), on 6 October 2009, by section 455(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 35 list of deﬁned terms tax credit: added (with effect on 1 April 2008), on 6 October 2009, by section 455(3) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2435 Part O s OP 36 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 36 Consolidated ICA overpayment of FDP Debit (1) A consolidated imputation group has an imputation debit for the amount of an overpayment of FDP relating to a dividend derived by a group company in the following circumstances: the dividend is derived by the company at a time when— (a) the company is part of a consolidated group with- (i) out an FDP account; or the company does not have an FDP account and is not part of a consolidated group; and (ii) (b) (c) the overpayment is applied to pay an amount due under the Inland Revenue Acts other than a liability for in- come tax or FDP; and the group does not have an FDP account when the amount is applied.
Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 10 (overpayment of FDP).

Debit date The debit date is the day the amount is applied.
Deﬁned in this Act: amount, company, consolidated group, consolidated imput- ation group, dividend, FDP, FDP account, imputation debit, income tax, Inland Revenue Acts, pay Compare: 2004 No 35 s ME 12(1)(m), (2)(k) (2) (3) OP 37 Consolidated ICA group company’s debit Debit (1) A consolidated imputation group has an imputation debit for an amount to the extent to which the amount would, in the absence of subsection (3), give rise to— (a) an imputation debit described in a row of table O2: im- putation debits, in the imputation credit account of a group company; and an imputation debit that would create or increase a debit balance in the group company’s imputation credit ac- count.
(b) 2436 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 39 (2) (3) (4) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 11 (group company’s debit).

No debit for group company The amount referred to in subsection (1) does not give rise to an imputation debit in the group company’s account although otherwise eligible to be one.
Debit date The debit date is the day that the amount would have been debited to the imputation credit account of the group company in the absence of subsection (3).
Deﬁned in this Act: amount, company, consolidated imputation group, imput- ation credit account, imputation debit Compare: 2004 No 35 s ME 12(1)(k), (2)(j) OP 38 Consolidated ICA transfer for net foreign attributed income [Repealed] Section OP 38: repealed (with effect on 30 June 2009), on 6 October 2009, by section 456(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 39 Consolidated ICA replacement payment by company under share-lending arrangement Debit (1) A consolidated imputation group has an imputation debit for the amount of an imputation credit attached under section OB 64 (Replacement payments) to a replacement payment paid under a share-lending arrangement by a company that is part of the consolidated imputation group at the time of payment.
(2) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 13 (replacement payment under share-lending arrange- ment).

2437 Part O s OP 40 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Debit date The debit date is the day the replacement payment is paid.
Deﬁned in this Act: amount, company, consolidated imputation group, im- putation credit, imputation debit, pay, replacement payment, share-lending ar- rangement Compare: 2004 No 35 s ME 12(1)(ab), (2)(ab) OP 40 Consolidated ICA returning share transfer Debit (1) A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend paid to a company if— (a) at the time of payment, the company is part of the con- solidated imputation group; and the dividend is paid to the company as a share user, or a person associated with a share user, in a returning share transfer that is not a share-lending arrangement.
(b) (2) (3) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 14 (returning share transfer).

Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, associated person, company, consolidated imput- ation group, dividend, imputation credit, imputation debit, pay, returning share transfer, share-lending arrangement, share user Compare: 2004 No 35 s ME 12(1)(ac), (2)(ac) OP 41 Consolidated ICA credit transfer by company Debit (1) A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend paid to a company if— (a) at the time of payment, the company is a part of the consolidated imputation group; and the amount is shown in a credit transfer notice given by the company.
(b) 2438 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 43 (2) (3) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 15 (credit transfer).

Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, company, consolidated imputation group, credit transfer notice, dividend, imputation credit, imputation debit, pay Compare: 2004 No 35 s ME 12(1)(ad), (2)(ac) OP 42 Consolidated ICA debit for loss of shareholder continuity Debit (1) A consolidated imputation group has an imputation debit for the amount of an imputation credit retained in the group’s im- putation credit account and unused at the time at which share- holder continuity is lost.
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table imputation debits of consolidated imputation groups, O20: row 16 (debit for loss of shareholder continuity).

When debit arises The debit arises at the time shareholder continuity is lost.
Deﬁned in this Act: amount, consolidated imputation group, imputation credit, imputation credit account, imputation debit, shareholder Compare: 2004 No 35 ss ME 12(1)(h), (2)(g), ME 13(2) Section OP 42(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 95(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OP 42(3) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 95(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OP 42(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 95(2) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
OP 43 Consolidated ICA breach of imputation ratio Debit (1) A consolidated imputation group has an imputation debit for a tax year for the amount of a debit under section OB 43 (ICA 2439 Part O s OP 44 Income Tax Act 2007 Reprinted as at 29 May 2012 breach of imputation ratio) that would arise in the imputation credit account of a group company in the absence of section OP 5(3).
Table references The group’s imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 17 (breach of imputation ratio).

The group com- pany’s imputation debit in subsection (1) is referred to in table O2: imputation debits, row 16 (breach of imputation ratio).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, company, consolidated imputation group, imput- ation credit account, imputation debit, tax year Compare: 2004 No 35 s ME 12(1)(e), (2)(e) (2) (3) OP 44 Consolidated ICA debit for policyholder base imputation credits Debit (1) A consolidated imputation group has an imputation debit for the amount of an imputation credit attached to a dividend de- rived by a group company, to the extent to which it is derived by a group company that is a life insurer and apportioned to that life insurer’s policyholder base.
Table reference The imputation debit in subsection (1) is referred to in table imputation debits of consolidated imputation groups, O20: row 18 (debit for policyholder base imputation credits).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: consolidated imputation group, imputation credit, imput- ation debit, life insurer, policyholder base, tax year Section OP 44: substituted, on 1 July 2010, by section 458(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 44 list of deﬁned terms tax year: added (with effect on 1 April 2008), on 6 October 2009, by section 457(2) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

(2) (3) 2440 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 45 OP 45 Consolidated ICA redemption debit Debit (1) A consolidated imputation group has an imputation debit for the amount of a redemption debit.
When redemption debit arises (2) A redemption debit arises when— (a) (b) (c) (d) a group company that is not an Australian ICA company is— (i) (ii) the manager of a unit trust; or the trustee or manager of a group investment fund; and the group company derives a dividend from the redemp- tion or cancellation of— (i) (ii) a unit issued by the unit trust; or an interest of an investor in the group investment fund; and the company has acquired the unit or interest in the or- dinary course of its management activities for the unit trust or group investment fund; and the unit or interest had been acquired by the company on the same terms as those offered to the investors in the unit trust or group investment fund.
Calculating amount The debit is for the greater of the amounts described in sub- sections (4) and (6) calculated for the income year referred to in subsection (8) in which the group company derives the divi- dend referred to in subsection (2)(b).

First amount The ﬁrst amount is calculated using the formula— credits attached – imputation debits.
Deﬁnition of items in formula In the formula in subsection (4),— (a) credits attached is the total amount of all imputation credits and FDP credits attached to dividends derived by the group company in the income year in the circum- stances set out in subsection (2): (3) (4) (5) 2441 Part O s OP 45 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) imputation debits is the amount of imputation debits in the income year under section OP 42 in the group’s imputation credit account.
Second amount The second amount is calculated using the formula— (6) total dividends taxable income × (tax liability continuity debits).
Deﬁnition of items in formula In the formula in subsection (6),— (a) total dividends is the total amount of all dividends de- rived in the circumstances set out in subsection (2), in- cluding imputation credits and FDP credits attached to the dividends: taxable income is the taxable income of the group com- pany for the tax year corresponding to the income year in which the dividends are derived: tax liability is the group company’s income tax liability for the tax year corresponding to the income year in which the dividends are derived: continuity debits is the amount of imputation credits attached to the dividends that have been cancelled by an imputation debit under section OP 42.
Table references The table references are as follows: (a) the imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imput- ation groups, row 19 (redemption debit): the imputation debit in subsection (5)(b) is referred to in table O20: imputation debits of consolidated imput- ation groups, row 16 (debit for loss of shareholder con- tinuity): the imputation debit in subsection (7)(d) is referred to in table O20: imputation debits of consolidated imput- ation groups, row 16 (debit for loss of shareholder con- tinuity).
(b) (c) (d) (b) (c) (7) (8) 2442 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 47 (9) Debit date The debit date is the day the company or the group’s nomin- ated company ﬁles the return of income for the tax year corres- ponding to the income year in which the dividend is derived.
Deﬁned in this Act: amount, Australian ICA company, company, consolidated imputation group, dividend, FDP credit, group investment fund, imputation credit, imputation credit account, imputation debit, income tax liability, income year, investor, nominated company, return of income, tax year, taxable income, trustee, unit trust Compare: 2004 No 35 s ME 41 OP 46 Consolidated ICA tax advantage arrangement Debit (1) A consolidated imputation group has an imputation debit for the amount of a debit for a tax advantage arrangement deter- mined under sections GB 35 and GB 36 (which relate to im- putation arrangements to obtain a tax advantage).
(2) (3) Table reference The imputation debit in subsection (1) is referred to in table imputation debits of consolidated imputation groups, O20: row 20 (tax advantage arrangement).

Debit date The debit date is the last day of the tax year in which the ar- rangement began.
Deﬁned in this Act: amount, arrangement, consolidated imputation group, im- putation debit, tax advantage, tax year Compare: 2004 No 35 s ME 12(1)(i), (2)(h) OP 47 Consolidated ICA ﬁnal balance Debit (1) A consolidated imputation group has an imputation debit for a credit balance in the imputation credit account when the group stops being a consolidated imputation group.
(2) Table reference The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 21 (ﬁnal balance).

2443 Part O s OP 48 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Debit date The debit date is the day before the group stops being a con- solidated imputation group.
Deﬁned in this Act: consolidated imputation group, imputation credit account, imputation debit Compare: 2004 No 35 s ME 12(1)(j), (2)(h) OP 48 Consolidated ICA refund of NRWT Debit (1) A consolidated imputation group that includes an Australian ICA company has an imputation debit for the amount of a re- fund of NRWT that gave rise to an imputation credit under section OP 25.
(2) (3) Table references The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 22 (refund of NRWT).

The imputation credit in subsec- tion (1) is referred to in table O19: imputation credits of con- solidated imputation groups, row 20 (NRWT withheld).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, imputation debit, NRWT Compare: 2004 No 35 s ME 12(1A)(a), (2A) OP 49 Consolidated ICA refund of amount of tax for schedular payment Debit (1) A consolidated imputation group that includes an Australian ICA company has an imputation debit for the amount of a re- fund of an amount of tax for a schedular payment that gave rise to an imputation credit under section OP 26.
Table references The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 23 (refund of amount of tax for schedular payment).

The imputation credit in subsection (1) is referred to in table O19: (2) 2444 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 50 imputation credits of consolidated imputation groups, row 21 (amount of tax for schedular payment).

(3) Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, amount of tax, Australian ICA company, consoli- dated imputation group, imputation credit, imputation debit, schedular payment Compare: 2004 No 35 s ME 12(1A)(b), (2A) OP 50 Consolidated ICA refund of schedular income tax Debit (1) A consolidated imputation group that includes an Australian ICA company has an imputation debit for the amount of a re- fund of a payment of schedular income tax that gave rise to an imputation credit under section OP 27.
(2) (3) Table references The imputation debit in subsection (1) is referred to in table O20: imputation debits of consolidated imputation groups, row 24 (refund of schedular income tax).

The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 22 (payment of schedular income tax).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: amount, Australian ICA company, consolidated imputation group, imputation credit, imputation debit, income tax, pay, schedular income tax Compare: 2004 No 35 s ME 12(1A)(c), (2A) 2445 Part O s OP 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O19: imputation credits of consolidated imputation groups Row Imputation credit Credit date Opening credit balance 1 April or when group starts Further deﬁned section OA 7 Income tax paid for group tax liability Group funds paid into tax pooling account Transfer from tax pooling account Allocation from excess company day of payment section OP 7 day of payment section OP 8 day of credit or refund day of notice of allocation section OP 9 section OP 10 Further income tax paid day of payment section OP 11 6B Tax credit for research and development expenditure day return ﬁled section OP 11B.
Imputation credit attached to dividend derived day on which dividend is paid section OP 12 FDP credit attached to dividend derived day on which dividend is paid section OP 13 [Repealed] Replacement payment paid under share-lending arrangement day of payment section OP 15 Imputation credit attached to dividend and shown in credit transfer notice RWT withheld day on which notice is given section OP 16 day on which interest is paid section OP 17 Transfer from group company’s FDP account debit day for transfer Transfer from consolidated group’s FDP account debit date for transfer section OP 18 section OP 19 [Repealed] [Repealed] Group company’s credit set out in section OP 22 section OP 22 2446 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 50 Row Imputation credit Credit date Further deﬁned Debit for loss of shareholder continuity that cancels credit for tax pooling account deposit that is refunded day of refund section OP 23 Reversal of debit for tax advantage arrangement debit date for debit NRWT on non-resident withholding income derived by group company that is Australian ICA company day on which amount is withheld Amount of tax for schedular payment to group company that is also Australian ICA company day on which amount is withheld section OP 24 section OP 25 section OP 26 Schedular income tax paid by group company that is Australian ICA company day of payment section OP 27 Table O19 row 6B: inserted, on 1 April 2008, by section 516 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Table O19 row 9: repealed (with effect on 30 June 2009), on 6 October 2009, by section 459(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O19 row 15: repealed, on 1 July 2010, by section 459(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O19 row 16: repealed, on 1 July 2010, by section 459(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2447 Part O s OP 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O20: imputation debits of consolidated imputation groups Row Imputation debit Debit date Opening debit balance 1 April or when group starts Further deﬁned section OA 7 7B 2448 Imputation credit attached to dividend paid by group company day of payment section OP 28 Provisional tax allocated by group to underpaid company day of notice of allocation section OP 29 Refund of income tax or provisional tax to group Income tax overpaid that is applied to satisfy amount of tax, other than income tax, due by group company Refund from tax pooling account day of refund section OP 30 day of application section OP 31 set out in section OP 32 section OP 32 Transfer to another taxpayer of funds in tax pooling account set out in section OP 33 section OP 33 Debit for transfer from tax pooling account for policyholder base liability Refund of FDP when no FDP account 31 March section OP 33B day of refund section OP 34 Transfer, refund, or use of tax credit day of transfer, refund, or use section OP 35 Overpaid FDP applied, when group does not have FDP account, to satisfy amount due that is not income tax or FDP day of application section OP 36 Debit that would increase debit balance for group company set out in section OP 37 section OP 37 [Repealed] Credit attached to replacement payment under share-lending arrangement Credit attached to dividend shown in returning share transfer Credit attached to dividend and shown in credit transfer notice day of payment section OP 39 day of payment section OP 40 day of payment section OP 41 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 50 Row Imputation debit Debit date Debit for loss of shareholder continuity time of loss of continuity Further deﬁned section OP 42 Debit for breach of imputation ratio Debit for policyholder base imputation credits Redemption debit for unit trust or group investment fund for income year Debit for tax advantage
 arrangement Credit balance of group’s imputation credit account when group stops being consolidated imputation group Refund of NRWT to group company that is Australian ICA company Refund of amount of tax for schedular payment to group company that is Australian ICA company Refund of schedular income tax to group company that is Australian ICA company 31 March section OP 43 31 March section OP 44 section OP 45 section OP 46 day on which return of income for income year is ﬁled last day of tax year in which arrangement began day of cessation section OP 47 day of refund section OP 48 day of refund section OP 49 day of refund section OP 50 Table O20 row 7B: inserted, on 1 July 2010, by section 460(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O20 row 9: substituted (with effect on 1 April 2008), on 6 October 2009, by section 460(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O20 row 12: repealed (with effect on 30 June 2009), on 6 October 2009, by section 460(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O20 row 16: amended (with effect on 1 April 2008), on 7 December 2009, by section 96 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Table O20 row 18: substituted, on 1 July 2010, by section 460(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2449 Part O s OP 51 Income Tax Act 2007 Reprinted as at 29 May 2012 Consolidated groups and FDP accounts Introductory provisions OP 51 FDP accounts of consolidated FDP groups Consolidated group account (1) A consolidated group is a consolidated FDP group for a tax year if— (a) (b) a group company is a foreign dividend payment account (FDPA) company at a time during the tax year; or the group chooses to maintain an FDP account.
(2) (3) Effect of election If a consolidated FDP group makes an election under subsec- tion (1)(b), it must maintain the FDP account referred to in section OC 2 (FDP accounts) from the date of election.
Notifying Commissioner The nominated company of a consolidated FDP group must notify the Commissioner of an election under subsection (1)(b)— (a) (b) Deﬁned in this Act: Commissioner, company, consolidated FDP group, con- solidated group, FDP account, FDPA company, nominated company, notify, tax year Compare: 2004 No 35 s MG 13(1) no later than 21 days after the day of election; or by a later date if the Commissioner allows.
OP 52 Choosing to stop being consolidated FDP group Election The nominated company of a consolidated FDP group may choose that the group’s status as a consolidated FDP group is to end.

When election made The election referred to in subsection (1) may be made during a tax year that is later than the tax year in which the group chooses under section OP 51 to become a consolidated FDP group.
(1) (2) 2450 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 53 (3) When company’s status ends The election referred to in subsection (1) takes effect from the ﬁrst day of the tax year after the tax year in which the election referred to in subsection (2) is made, but only if,— (a) the group— (i) (ii) ﬁles an annual FDPA return for the year of elec- tion in the time allowed by section 71 of the Tax Administration Act 1994; and pays further FDP, if any, under section OC 30 (Payment of further FDP for closing debit bal- ance) for the year of election; and (b) no group company is an FDPA company in the tax year after the year of election.
Deﬁned in this Act: annual FDPA return, company, consolidated FDP group, FDPA company, further FDP, nominated company, pay, tax year Compare: 2004 No 35 s MG 2(4), (5) OP 53 When group company emigrates (1) (2) (3) When this section applies This section applies when an FDPA company in a consolidated FDP group is an emigrating company.

Status ends The group’s status as a consolidated FDP group ends at the time of emigration of the company.
Further payments and returns The consolidated FDP group must— (a) (b) provide the annual FDPA return required for the group for the tax year in which the company becomes non- resident; and for a debit balance in the consolidated FDP group’s ac- count at the time of emigration, pay further FDP payable for the tax year of an amount equal to the debit balance.
Deﬁned in this Act: amount, annual FDPA return, consolidated FDP group, emigrating company, FDPA company, further FDP, non-resident, pay, tax year, time of emigration Compare: 2004 No 35 s MG 13(6), (7) 2451 Part O s OP 54 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 54 When credits and debits arise only in consolidated FDP group accounts Credits to group accounts (1) A credit listed in subsection (2) arises only in the FDP account of a consolidated FDP group and not in the FDP account of a group company.
(2) Particular credits The credit referred to in subsection (1) is a credit under section OP 58, described in table O21, row 4.

Debits only in group accounts (3) A debit listed in subsection (4) arises only in the FDP account of a consolidated FDP group and not in the FDP account of a group company.
Particular debits The debit referred to in subsection (3) is a debit under the fol- lowing sections and described in the following rows of table O22: FDP debits of consolidated FDP groups: (a) (b) (c) (d) (e) section OP 64, row 2 (payment of dividend): section OP 66, row 4 (refund of FDP): section OP 68, row 6 (refund of tax credit): section OP 72, row 10 (breach of FDP ratio): section OP 74, row 12 (debit for policyholder base FDP credits).
Deﬁned in this Act: company, consolidated FDP group, FDP account Compare: 2004 No 35 s MG 16(1) Section OP 54(2): substituted (with effect on 30 June 2009), on 6 October 2009, by section 461(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OP 54(4)(d): amended, on 1 July 2010, by section 461(2) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 54(4)(e): added, on 1 July 2010, by section 461(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(4) 2452 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 57 OP 55 Provisions applying to consolidated FDP groups (1) (2) (3) Single company, tax liabilities The provisions set out in subsection (2) apply, modiﬁed as necessary, to a consolidated FDP group and to the FDP account of the group as if— (a) (b) the group were a single company; and a reference to a section of this Act were to an equivalent provision applicable to a consolidated group; and a reference to a company’s liability for further FDP, late payment penalty, or FDP penalty tax were a reference to a joint and several liability owed by group companies when the tax or penalty becomes payable.
(c) Other provisions The provisions are— (a) sections OC 30 and OC 31 (which relate to further FDP); and sections 103, 104, 139B, 140C, 140D, and 181 of the Tax Administration Act 1994.

(b) Consolidation provisions Sections FM 3 and FM 4 (which relate to the liabilities of con- solidated groups and group companies) overrides subsection (1)(c).
Deﬁned in this Act: company, consolidated FDP group, consolidated group, FDP account, FDP penalty tax, further FDP, pay Compare: 2004 No 35 s MG 16A(2) FDP credits of consolidated FDP groups OP 56 Consolidated FDPA payment of FDP [Repealed] Section OP 56: repealed (with effect on 1 April 2009), on 6 October 2009, by section 462(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 57 Consolidated FDPA payment of further FDP [Repealed] Section OP 57: repealed (with effect on 1 April 2009), on 6 October 2009, by section 463(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2453 Part O s OP 58 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 58 Consolidated FDPA dividend derived with FDP credit Credit (1) A consolidated FDP group has an FDP credit for the amount of an FDP credit attached to a dividend derived by a group company.

(2) (3) Table reference The FDP credit in subsection (1) is referred to in table O21: FDP credits of consolidated FDP groups, row 4 (dividend de- rived with FDP credit).

Credit date The credit date is the day the dividend is paid.
Deﬁned in this Act: amount, company, consolidated FDP group, dividend, FDP credit, pay Compare: 2004 No 35 s MG 14(1)(b), (2)(a) OP 59 Consolidated FDPA group company’s credit Credit (1) A consolidated FDP group has an FDP credit for the amount of a credit arising as follows: (a) an FDP credit described in a row of table O3: FDP credits, arises in the FDP account of a group company; and an FDP debit described in a row of table O22: FDP debits of consolidated FDP groups, arises in the group FDP account; and the debit is not offset by a credit arising in the group account before or on the same date on which the credit arose in the group company’s account.
(b) (c) Table reference The FDP credit in subsection (1) is referred to in table O21: FDP credits of consolidated FDP groups, row 5 (group com- pany’s credits).
Offsetting debits For the purposes of subsection (1)(c), to determine whether the debit has been offset by a credit in the group account,— (a) credits are treated as reducing debits in the order in which the credits arise; and (2) (3) 2454 Reprinted as at 29 May 2012 (b) (c) Income Tax Act 2007 Part O s OP 61 a credit, whether some or all, is counted only once in determining whether a debit has been offset; and credits in the accounts of more than 1 group company become a credit to the group account— (i) (ii) in the order of their credit date; and as chosen by the group, if credits arise on the same credit date; and on a pro rata basis, if no election is made under subparagraph (ii).
(iii) (4) Credit date The credit date is immediately before the debit date for the debit to the group account.
Deﬁned in this Act: amount, company, consolidated FDP group, FDP account, FDP credit, FDP debit Compare: 2004 No 35 ss MG 14(1)(e), (2)(c), MG 16(2), (4) OP 60 Consolidated FDPA credit transfer to company Credit (1) A consolidated FDP group has an FDP credit for the amount of an FDP credit shown in a credit transfer notice given to a company that is part of the consolidated FDP group when the notice is given.
(2) (3) Table reference The FDP credit in subsection (1) is referred to in table O21: FDP credits of consolidated imputation groups, row 6 (credit transfer).

Credit date The credit date is the day the notice is given.
Deﬁned in this Act: amount, company, consolidated FDP group, credit transfer notice, FDP credit Compare: 2004 No 35 s MG 14(1)(bb), (2)(ab) OP 61 Consolidated FDPA transfer from group’s CTR account [Repealed] Section OP 61: repealed (with effect on 1 April 2009), on 6 October 2009, by section 464(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2455 Part O s OP 62 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 62 Consolidated FDPA transfer for net foreign attributed income [Repealed] Section OP 62: repealed (with effect on 1 April 2009), on 6 October 2009, by section 465(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 63 Consolidated FDPA reversal of tax advantage arrangement (1) (2) (3) (4) When this section applies This section applies when it is established that an FDP credit in a consolidated FDP group’s FDP account was incorrectly determined to be the subject of an arrangement to obtain a tax advantage.

Credit The consolidated FDP group has an FDP credit for an amount equal to a debit in the group’s FDP account under section OP 76.
Table references The FDP credit in subsection (2) is referred to in table O21: FDP credits of consolidated FDP groups, row 9 (reversal of tax advantage arrangement).

The FDP debit in subsection (2) is referred to in table O22: FDP debits of consolidated FDP groups, row 14 (tax advantage arrangement).

Credit date The credit date is the same as the debit date of the debit.
Deﬁned in this Act: amount, consolidated FDP group, FDP account, FDP credit, tax advantage Compare: 2004 No 35 s MG 14(1)(d), (2)(b) FDP debits of consolidated FDP groups OP 64 Consolidated FDPA payment of dividend Debit (1) A consolidated FDP group has an FDP debit for the amount of an FDP credit attached to a dividend paid by a group company that is part of the group when the dividend is paid.
2456 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 66 (2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 2 (payment of dividend).

Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, company, consolidated FDP group, dividend, FDP account, FDP credit, FDP debit, pay Compare: 2004 No 35 s MG 15(1)(a), (2)(a) OP 65 Consolidated FDPA credit transfer by company Debit (1) A consolidated FDP group has an FDP debit for the amount of an FDP credit attached to a dividend paid to a company if— (a) at the time of payment, the company is a part of the consolidated FDP group; and the amount is shown in a credit transfer notice given by the company.
(b) (2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 3 (credit transfer notice).

Debit date The debit date is the day the dividend is paid.
Deﬁned in this Act: amount, consolidated FDP group, credit transfer notice, dividend, FDP credit, FDP debit, pay Compare: 2004 No 35 s MG 15(1)(ab), (2)(ab) OP 66 Consolidated FDPA refund of FDP Debit (1) A consolidated FDP group has an FDP debit for a refund of FDP paid to a group company that is part of the group when it derived the dividend giving rise to the payment of FDP and the refund.

Subsection (2) overrides this subsection.


No debit (2) A debit under subsection (1) does not arise if— (a) the payment of FDP giving rise to the refund was made before an FDP debit arises under section OP 73; and 2457 Part O s OP 67 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) (b) the debit for the refund is no more than the debit for loss of shareholder continuity.
Table references The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 4 (refund of FDP).

The FDP debit in subsection (2)(a) is referred to in table O22: FDP debits of consolidated FDP groups, row 11 (debit for loss of shareholder continuity).

Debit date The debit date is the day the refund is made.
Deﬁned in this Act: company, consolidated FDP group, dividend, FDP, FDP debit, pay, shareholder Compare: 2004 No 35 s MG 15(1)(d), (2)(d) OP 67 Consolidated FDPA overpayment of FDP Debit (1) A consolidated FDP group has an FDP debit for an overpay- ment of FDP that is— (a) paid by a group company that is part of the group at the time it derived the dividend giving rise to the overpay- ment of FDP; and applied to pay an amount due under the Inland Revenue Acts.
(b) No debit (2) Despite subsection (1), the debit does not include an overpay- ment of FDP to the extent to which it is— (a) (b) applied to satisfy a liability for FDP; or for a payment of FDP before an FDP debit arises under section OP 73, no more than the debit for loss of share- holder continuity.

Table references The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 5 (overpayment of FDP).
The FDP debit in subsection (2)(b) is referred to in table O22: FDP debits of consolidated FDP groups, row 11 (debit for loss of shareholder continuity).

(3) 2458 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 69 (4) Debit date The debit date is the day the amount is applied.
Deﬁned in this Act: amount, company, consolidated FDP group, dividend, FDP, FDP debit, Inland Revenue Acts, pay, shareholder Compare: 2004 No 35 s MG 15(1)(1), (2)(j) OP 68 Consolidated FDPA refund of tax credit Debit (1) A consolidated FDP group has an FDP debit for the amount of a transfer or refund under section LA 6(2)(d) or (e) (Remaining refundable credits: PAYE, RWT, and certain other items) to the extent to which the amount transferred or refunded is a tax credit under subpart LF (Tax credits for FDP credits) relating to a dividend derived by a group company that is part of the group at the time it derives the dividend.
(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 6 (refund of tax credit).

Debit date The debit date is the day the transfer or refund is made.
Deﬁned in this Act: company, consolidated FDP group, tax credit, dividend, FDP debit Compare: 2004 No 35 s MG 15(1)(e), (2)(d) Section OP 68(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 466(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section OP 68(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 466(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 69 Consolidated FDPA transfer to imputation credit account Debit (1) A consolidated FDP group has an FDP debit for a tax year for an amount equal to a closing credit balance transferred under section FM 29 (Treatment of credit balance in consoli- dated group’s FDP account) to the group’s imputation credit account.
2459 Part O s OP 70 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 7 (transfer to imputation credit account).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, consolidated FDP group, FDP debit, imputation credit account, tax year Compare: 2004 No 35 s MG 15(1)(c), (2)(c) OP 70 Consolidated FDPA transfer to group’s CTR account [Repealed] Section OP 70: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 111(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 71 Consolidated FDPA group company’s debit Debit (1) A consolidated FDP group has an FDP debit for an amount to the extent to which it would, in the absence of subsection (2), give rise to— (a) an FDP debit described in a row of table O4: FDP debits, in the FDP account of a group company; and an FDP debit that would create or increase a debit bal- ance in the group company’s FDP account.
(b) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 9 (group com- pany’s debit).

No debit for group company The amount referred to in subsection (1) does not give rise to an FDP debit in the group company’s account although other- wise eligible to be one.
(2) (3) 2460 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 73 (4) Debit date The debit date is the day that would be the debit date for the amount in the absence of subsection (3).
Deﬁned in this Act: amount, company, consolidated FDP group, FDP account, FDP debit Compare: 2004 No 35 ss MG 15(1)(k), (2)(i), MG 16(5) OP 72 Consolidated FDPA breach of FDP ratio Debit (1) A consolidated FDP group has an FDP debit for a tax year for the amount of a debit that would arise under section OC 22 (FDPA breach of FDP ratio) in the FDP account of a group company in the absence of section OP 54(3).
(2) (3) Table references The group’s FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 10 (breach of FDP ratio).

The group company’s FDP debit in subsection (1) is referred to in table O4: FDP debits, row 11 (breach of FDP ratio).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, company, consolidated FDP group, FDP account, FDP debit, tax year Compare: 2004 No 35 s MG 15(1)(f), (2)(e) OP 73 Consolidated FDPA debit for loss of shareholder continuity Debit (1) A consolidated FDP group has an FDP debit for the amount of an FDP credit retained in the group’s FDP account and unused at the time at which shareholder continuity is lost.
(2) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 11 (debit for loss of shareholder continuity).

2461 Part O s OP 74 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) When debit arises The debit arises at the time shareholder continuity is lost.
Deﬁned in this Act: amount, consolidated FDP group, FDP account, FDP credit, FDP debit, shareholder Compare: 2004 No 35 s MG 15(1)(i), (2)(g) Section OP 73(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 97(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section OP 73(3) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 97(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OP 73(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 97(2) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
OP 74 Consolidated FDPA debit for policyholder base FDP credits Debit (1) A consolidated FDP group has an FDP debit for the amount of an FDP credit attached to a dividend derived by a group com- pany, to the extent to which it is derived by a group company that is a life insurer and apportioned to that life insurer’s pol- icyholder base.
(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 12 (debit for pol- icyholder base FDP credits).

Debit date The debit date is the last day of the tax year.

Deﬁned in this Act: consolidated FDP group, FDP credit, FDP debit, life in- surer, policyholder base, tax year Section OP 74: substituted, on 1 July 2010, by section 467(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 75 Consolidated FDPA breach of FDP ratio by PCA company Debit (1) A consolidated FDP group has an FDP debit for a tax year for the amount of a debit that would arise under section 2462 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 77 OC 23 (FDPA breach of FDP ratio by PCA company) in the FDP account of a group company in the absence of section OP 54(4)(d).
Table references The group’s FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 13 (breach of FDP ratio by PCA company).

The group company’s FDP debit in subsection (1) is referred to in table O4: FDP debits, row 12 (breach of FDP ratio by PCA company).

Debit date The debit date is the last day of the tax year.
Deﬁned in this Act: amount, company, consolidated FDP group, FDP account, FDP debit, tax year Compare: 2004 No 35 s MG 15(1)(g), (2)(e) (2) (3) OP 76 Consolidated FDPA tax advantage arrangement Debit (1) A consolidated FDP group has an FDP debit for the amount of a debit for a tax advantage arrangement determined under sections GB 35 and GB 36 (which relate to imputation arrange- ments to obtain a tax advantage).
(2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 14 (tax advantage arrangement).

Debit date The debit date is the last day of the tax year in which the ar- rangement began.
Deﬁned in this Act: amount, arrangement, consolidated FDP group, FDP ac- count, FDP debit, tax advantage, tax year Compare: 2004 No 35 s MG 15(1)(h), (2)(f) OP 77 Consolidated FDPA ﬁnal balance Debit (1) A consolidated FDP group has an FDP debit for a credit bal- ance in the FDP account when the group stops being a con- solidated FDP group.
2463 Part O s OP 77 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) Table reference The FDP debit in subsection (1) is referred to in table O22: FDP debits of consolidated FDP groups, row 15 (ﬁnal bal- ance).

Debit date The debit date is the day the group stops being a consolidated FDP group.
Deﬁned in this Act: consolidated FDP group, FDP account, FDP debit Compare: 2004 No 35 s MG 15(1)(j), (2)(h) 2464 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 77 Table O21: FDP credits of consolidated FDP groups Row FDP credit Credit date Further deﬁned Opening credit balance 1 April section OA 7 [Repealed] [Repealed] FDP credit attached to dividend derived day on which dividend is paid section OP 58 Credit of group company set out in section OP 59 section OP 59 FDP credit attached to dividend and shown in credit transfer notice day on which notice is given section OP 60 [Repealed] [Repealed] Reversal of debit for tax advantage arrangement debit date for debit section OP 63 Table O21 row 2: repealed (with effect on 30 June 2009), on 6 October 2009, by section 468(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O21 row 3: repealed (with effect on 30 June 2009), on 6 October 2009, by section 468(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Table O21 row 7: repealed (with effect on 30 June 2009), on 6 October 2009, by section 468(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O21 row 8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 468(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2465 Part O s OP 77 Income Tax Act 2007 Reprinted as at 29 May 2012 Table O22: FDP debits of consolidated FDP groups Row FDP debit Debit date Further deﬁned Opening debit balance 1 April section OA 7 FDP credit attached to dividend paid by group company day on which dividend is paid section OP 64 FDP credit attached to dividend and shown in credit transfer notice day on which dividend is paid section OP 65 Refund of FDP day of refund section OP 66 Overpaid FDP applied to satisfy amount other than FDP due under Inland Revenue Acts day of application section OP 67 Refund of tax credit day of refund section OP 68 Transfer of year-end credit balance to imputation credit account 31 March section OP 69 [Repealed] Debit that would increase debit balance for group company set out in section OP 71 section OP 71 Debit for breach of FDP ratio 31 March section OP 72 Debit for loss of shareholder continuity time of loss of continuity section OP 73 Debit for policyholder base FDP credits Branch of FDP ratio by group company that is PCA company Debit for tax advantage arrangement Credit balance when group stops being consolidated FDP group 31 March section OP 74 31 March section OP 75 section OP 76 section OP 77 last day of tax year in which arrangement began days on which group stops being consolidated FDP group Table O22 row 8: repealed (with effect on 30 June 2009), on 6 October 2009, by section 469(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O22 row 11: amended (with effect on 1 April 2008), on 7 December 2009, by section 98 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

2466 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 80 Table O22 row 12: substituted, on 1 July 2010, by section 469(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Consolidated groups and CTR credits [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(1) of the Taxa- tion (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Introductory provisions [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(1) of the Taxa- tion (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 78 CTR accounts of consolidated groups [Repealed] Section OP 78: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 79 When credits and debits arise only in CTR group accounts [Repealed] Section OP 79: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 80 Provisions applying to consolidated groups with CTR accounts [Repealed] Section OP 80: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 112(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2467 Part O s OP 81 Income Tax Act 2007 Reprinted as at 29 May 2012 CTR credits of consolidated groups [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(1) of the Taxa- tion (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 81 Consolidated CTRA tax credit for conduit tax relief [Repealed] Section OP 81: repealed (with effect on 30 June 2009), on 6 October 2009, by section 472(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 82 Consolidated CTRA reduction of FDP [Repealed] Section OP 82: repealed (with effect on 30 June 2009), on 6 October 2009, by section 473(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 83 Consolidated CTRA dividend derived with CTR credit [Repealed] Section OP 83: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 84 Consolidated CTRA group company’s credit [Repealed] Section OP 84: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 85 Consolidated CTRA transfer from group’s FDP account [Repealed] Section OP 85: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2468 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 91 OP 86 Consolidated CTRA reversal of tax advantage arrangement [Repealed] Section OP 86: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
CTR debits of consolidated groups OP 87 Consolidated CTRA payment of dividend [Repealed] Section OP 87: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 113(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 88 Consolidated CTRA transfer to group’s FDP account [Repealed] Section OP 88: repealed (with effect on 30 June 2009), on 6 October 2009, by section 474(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 89 Consolidated CTRA adjustment for conduit tax relief [Repealed] Section OP 89: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 90 Consolidated CTRA group company’s debit [Repealed] Section OP 90: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 91 Consolidated CTRA increase in resident shareholding [Repealed] Section OP 91: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2469 Part O s OP 92 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 92 Consolidated CTRA breach of CTR ratio [Repealed] Section OP 92: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 93 Consolidated CTRA tax advantage arrangement [Repealed] Section OP 93: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 94 Consolidated CTRA ﬁnal balance [Repealed] Section OP 94: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 114(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Consolidated groups’ FDP payments and refunds [Repealed] Heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(1) of the Taxa- tion (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 95 FDP payable for credits and debits in group’s CTR account [Repealed] Section OP 95: repealed (with effect on 30 June 2009), on 6 October 2009, by section 475(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 96 Refund on transfer from group’s FDP account [Repealed] Section OP 96: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2470 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 97 Table O23: conduit tax relief credits of consolidated groups [Repealed] Table O23: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(2) of the Taxa- tion (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Table O24: conduit tax relief debits of consolidated groups [Repealed] Table O24: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 115(2) of the Taxa- tion (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Consolidated groups and branch equivalent tax accounts Introductory provisions OP 97 Branch equivalent tax accounts of consolidated BETA groups Consolidated group accounts (1) A consolidated group is a consolidated branch equivalent tax account (BETA) group for a tax year if— (a) a group company is a BETA company at a time during the tax year; or the group chooses to maintain a branch equivalent tax account.
(b) (2) Notifying Commissioner The nominated company of a consolidated BETA group must notify the Commissioner of an election under subsection (1)(b)— (a) (b) Deﬁned in this Act: BETA company, branch equivalent tax account, Commis- sioner, consolidated BETA group, consolidated group, nominated company, no- tify, tax year Compare: 2004 No 35 s MF 7(1), (2) no later than 21 days after the day of election; or by a later date if the Commissioner allows.
2471 Part O s OP 98 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 98 Choosing to stop being consolidated BETA group (1) Election The nominated company of a consolidated BETA group may choose that the group’s status as a consolidated BETA group is to end.

No election (2) An election under subsection (1) may be made during a tax year that is later than the tax year in which the group chooses under section OP 97 to become a consolidated BETA group.
(3) When group ends status The election takes effect from the ﬁrst day of the tax year after the tax year in which the election referred to in subsection (2) is made, but only if— (a) the group ﬁles an annual ICA return for the year of elec- tion in the time allowed by section 69 of the Tax Admin- istration Act 1994; and no group company is a BETA company in the tax year after the year of the election.
(b) Deﬁned in this Act: annual ICA return, BETA company, company, consolidated BETA group, nominated company, tax year Compare: 2004 No 35 s MF 7(3), (4) OP 99 When credits and debits arise only in branch equivalent tax group accounts [Repealed] Section OP 99: repealed (with effect on 30 June 2009), on 6 October 2009, by section 478(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Branch equivalent tax credits of consolidated BETA groups OP 100 Consolidated BETA payment of income tax on foreign income Credit (1) A consolidated BETA group has a branch equivalent tax credit for an income year for the lesser of the amount by which the group’s branch equivalent tax account is in debit and the amount calculated using the formula— 2472 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 100 ((group CFC income – group deductions) × tax rate) – foreign tax – debit balances.
(2) Deﬁnition of items in formula In the formula,— (a) group CFC income is the amount of attributed foreign income derived by the consolidated BETA group during the income year: group deductions is the total amount for the group for the income year of— (i) attributed controlled foreign company (CFC) loss; and attributed CFC net loss; and foreign investment fund (FIF) loss; and FIF net loss: (ii) (iii) (iv) tax rate is the basic rate of income tax set out in— (i) schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) if the company is not a Maori au- thority; or schedule 1, part A, clause 7 if the company is a Maori authority: (ii) foreign tax is the amount of foreign tax credits allowed under sections LK 1 to LK 7 (which relate to tax credits relating to attributed CFC income), as applicable, relat- ing to the group’s income tax liability for the income year: debit balances is the amount of all debit balances in a branch equivalent tax account applied to satisfy the group’s income tax liability for the income year.
(b) (c) (d) (e) (3) Table reference The branch equivalent tax credit in subsection (1) is referred to in table O25: branch equivalent tax credits of consolidated BETA groups, row 2 (payment of income tax on foreign in- come).

2473 Part O s OP 101 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Credit date The credit date is the day the nominated company ﬁles the return of income for the tax year corresponding to the income year for which the calculation is made.
Deﬁned in this Act: amount, attributed CFC loss, attributed CFC net loss, attributed foreign income, basic rate, branch equivalent tax account, branch equivalent tax credit, consolidated BETA group, FDP, FIF loss, FIF net loss, foreign tax, income tax, income tax liability, income year, Maori authority, nominated company, return of income, tax year Compare: 2004 No 35 s MF 8(2)(a), (3)(a) Section OP 100(1): amended (with effect on 1 July 2009 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 117(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OP 100(2)(c)(i): amended, on 1 April 2008, by section 562 of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OP 101 Consolidated BETA payment of income tax When this section applies This section applies when, for a consolidated BETA group,— (a) attributed CFC income is derived by— (i) the consolidated BETA group, and there is a debit balance in the branch equivalent tax account of the consolidated BETA group, of a member of the consolidated BETA group, or of a BETA com- pany (a BETA group company) that would be part of the same group of companies as the con- solidated BETA group if the consolidated BETA group were a single company: a BETA group company, and there is a debit bal- ance in the branch equivalent tax account of the consolidated BETA group; and (ii) (b) the debits producing the debit balance arise from FDP that has been paid— directly: (i) by reducing a tax loss: (ii) to reduce an FDP liability under section RG 7 (iii) (Reduction of payments for conduit tax relief).
Election The nominated company of the consolidated BETA group may choose to apply some or all of the debit balance to satisfy an (1) (2) 2474 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 101 income tax liability of the group or of group company B in relation to attributed CFC income that is allocated to an income year beginning before 1 July 2011.

The election must be made before the end of the ﬁrst income year beginning on or after 1 July 2011.
Maximum amount (2B) Despite subsection (2) and section OE 7(3) (BETA payment of income tax), the amount of BETA debits applied under elec- tions under subsection (2) and section OE 7(3) relating to the attributed CFC income referred to in subsection (2) must be no more than the amount calculated under section OE 6(1) (BETA payment of income tax on foreign income) for the company that has the attributed CFC income or under section OP 100(1) for the consolidated BETA group, in both cases treating the item debit balances as zero.
(3) (4) (4B) Credit [Repealed] [Repealed] Table reference The branch equivalent tax credit in subsection (2), as limited by subsection (2B), is referred to in table O25: branch equiva- lent tax credits of consolidated BETA groups, row 3 (payment of income tax).
Excess amount treated as tax loss component If a company chooses under subsections (2) and (2B) to apply a debit amount that exceeds the total income tax liability for the attributed CFC income referred to in subsection (1), the excess amount is treated as an amount of tax loss component— (a) of the BETA group company, if it has the attributed CFC income, or of the consolidated BETA group, otherwise; and calculated using the formula— (b) debit applied – tax liability tax rate.
Deﬁnition of items in formula In the formula,— (4C) 2475 Part O s OP 101 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) debit applied is the amount of the debit balance applied by the company under an election under subsections (2) and (2B): tax liability is the total income tax liability for the at- tributed CFC income: tax rate is the basic rate of income tax set out in— (i) schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts), if the company is not a Maori authority; or schedule 1, part A, clause 7, if the company is a Maori authority.
(ii) Income tax paid [Repealed] [Repealed] (5) Who makes the election (6) An election under subsection (2) may be made as follows: (a) if the income tax liability of the consolidated BETA group is to be satisﬁed, the election may be made by— the nominated company, if the debit balance is in (i) the branch equivalent tax account of the consoli- dated BETA group: a company that is a member of the consolidated BETA group, if the debit balance is in the branch equivalent tax account of that company: a BETA group company, if the debit balance is in the branch equivalent tax account of that BETA group company: (iii) (ii) (b) if the income tax liability of a BETA group company is to be satisﬁed, the election may be made by the nomin- ated company of the consolidated BETA group.
How election made (7) An election under subsection (2), limited by subsection (2B), is made by recording in the branch equivalent tax account a credit equal to the amount of the debit balance for which the election is made.

2476 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 101 (8) Credit date The credit date is the day of election.
Deﬁned in this Act: amount, attributed CFC income, branch equivalent tax ac- count, branch equivalent tax credit, company, consolidated BETA group, divi- dend, FDP, group of companies, income, income tax, income tax liability, in- come year, Maori authority, nominated company, pay, tax loss, tax year Compare: 2004 No 35 ss MF 8(2)(c), (3)(b), MF 10(3), (4)–(6) Section OP 101(1): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101(2): replaced (with effect on 1 July 2009 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 119(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OP 101(2B) heading: inserted, on 1 April 2008, by section 519(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OP 101(2B): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OP 101(3) heading: repealed (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), pursuant to section 119(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101(3): repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OP 101(4): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101(4B) heading: inserted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), by section 119(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OP 101(4B): inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101(4C) heading: inserted (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), by section 119(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OP 101(4C): inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101(5) heading: repealed (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), pursuant to section 119(7) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
2477 Part O s OP 102 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OP 101(5): repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(7) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101(6): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(8) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OP 101(7): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 119(9) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OP 101 compare note: amended (with effect on 1 April 2008), on 29 Au- gust 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section OP 101 compare note: amended, on 1 April 2008, by section 519(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
OP 102 Consolidated BETA remaining debit balances [Repealed] Section OP 102: repealed (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 120(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

OP 103 Consolidated BETA refund of FDP Credit (1) A consolidated BETA group has a branch equivalent tax credit for a tax year for the amount of a refund of FDP.

Subsections (2) to (3B) override this subsection.


Refund giving rise to debit (2) A refund under subsection (1) must be a refund of a payment of FDP that gave rise to a debit under section OP 105.
Reduction The amount of the credit under subsection (1) is reduced to the extent to which— (a) the payment of FDP is made before a branch equivalent tax credit arises under section OP 104 in the group’s branch equivalent tax account; and the amount of the refund is no more than the amount of the credit for the loss of shareholder continuity.
(b) (3) 2478 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 104 Limit on amount (3B) The amount of the credit under subsection (1), after any reduc- tion under subsection (3), is limited to the amount of the debit in the group’s branch equivalent tax account at the time of the refund.
(4) (5) Table references The table references are as follows: (a) (b) (c) the branch equivalent tax credit in subsection (1) is re- ferred to in table O25: branch equivalent tax credits of consolidated BETA groups, row 4 (refund of FDP): the branch equivalent tax debit in subsection (2) is re- ferred to in table O26: branch equivalent tax debits of consolidated BETA groups, row 2 (payment of FDP): the branch equivalent tax credit in subsection (3)(a) is referred to in table O25: branch equivalent tax credits of consolidated BETA groups, row 5 (credit for loss of shareholder continuity).
Credit date The credit date is the day the refund is made.

Deﬁned in this Act: amount, branch equivalent tax account, branch equiva- lent tax credit, consolidated BETA group, consolidated group, FDP, pay, share- holder, tax year Compare: 2004 No 35 s MF 8(2)(d), (3)(c) Section OP 103(1): amended (with effect on 1 July 2009 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 121(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section OP 103(3B) heading: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 121(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section OP 103(3B): inserted (with effect on 1 July 2009 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 121(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OP 104 Consolidated BETA credit for loss of shareholder continuity Credit (1) A consolidated BETA group has a branch equivalent tax credit for the amount of a branch equivalent tax debit retained in the 2479 Part O s OP 104B Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) branch equivalent tax account and unused at the time at which shareholder continuity is lost.
Table reference The branch equivalent tax credit in subsection (1) is referred to in table O25: branch equivalent tax credits of consolidated BETA groups, row 5 (credit for loss of shareholder continuity).

When credit arises The credit arises at the time shareholder continuity is lost.
Deﬁned in this Act: amount, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, consolidated BETA group, shareholder Compare: 2004 No 35 s MF 8(2)(e), (3)(d) Section OP 104(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 99(1) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
Section OP 104(3) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 99(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section OP 104(3): substituted (with effect on 1 April 2008), on 7 December 2009, by section 99(2) of the Taxation (Consequential Rate Alignment and Re- medial Matters) Act 2009 (2009 No 63).
Treatment by consolidated BETA groups of BETA debits from conduit relief Heading: inserted (with effect on 30 June 2009), on 7 September 2010 (apply- ing for income years beginning on or after 1 July 2009), by section 109(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 104B Consolidated BETA group with debit balance, including debits from conduit relief, in certain income years When this section applies This section applies when a consolidated BETA group, in an income year beginning on or after 1 July 2009 (an affected year), has a debit balance— (a) (b) in its branch equivalent tax account; and that includes an amount (the CTR-relief amount) equal to the total of amounts that— (i) relate to branch equivalent tax debits in the branch equivalent tax account that each arose (1) 2480 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 104B (2) (3) (ii) under section OP 105 in relation to a foreign dividend; and equal, for each branch equivalent tax debit, the reduction under section RG 7 (Reduction of pay- ments for conduit tax relief) of a company’s li- ability to pay FDP to the Commissioner for the foreign dividend.
Use of CTR-relief amount The consolidated BETA group may not choose under section OP 101 to apply the CTR-relief amount to satisfy an income tax liability except by an election— (a) relating to attributed CFC income that the consolidated BETA group allocates to an income year beginning be- fore 1 July 2009; and (b) made before the earlier of— (i) (ii) the ﬁrst election under section OP 101 relating to attributed CFC income that the group allocates to an affected year: the end of the ﬁrst affected year.
Determination of CTR-relief amount The CTR-relief amount in a branch equivalent tax account is found by— (a) treating a branch equivalent tax debit that arises partly from a reduction of FDP under section RG 7 and partly from a payment of FDP as being 2 debits, one equal to the reduction of FDP and the other equal to the amount of the payment of FDP; and if a branch equivalent tax credit arises before the ﬁrst affected year other than from an election relating to at- tributed CFC income allocated to an affected year or arises in an affected year from an election meeting the requirements of the exception to subsection (2), treating the credit as— (i) reducing branch equivalent tax debits in the order in which the debits arise; and for branch equivalent tax debits arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribu- tion of the debit to the total of the debits; and (ii) (b) 2481 Part O s OP 105 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) if the treatment of a branch equivalent tax credit is not given by paragraph (b), treating the credit as— (i) (ii) (iii) reducing branch equivalent tax debits arising from the payment of FDP in the order in which the debits arise; and after all branch equivalent tax debits arising from the payment of FDP are reduced to zero, reducing debits arising from a reduction of FDP under sec- tion RG 7 in the order in which the debits arise; and for branch equivalent tax debits subject to the same subparagraph and arising at the same time and not reduced to zero by the credit, reducing each debit in proportion to the contribution of the debit to the total of the debits; and (d) counting an amount of a branch equivalent tax credit only once in the reduction of some or all of a branch equivalent tax debit.
Deﬁned in this Act: attributed CFC income, branch equivalent tax account, branch equivalent tax credit, branch equivalent tax debit, Commissioner, com- pany, consolidated BETA group, FDP, foreign dividend income tax liability, income year Section OP 104B: inserted (with effect on 30 June 2009), on 7 September 2010 (applying for income years beginning on or after 1 July 2009), by section 109(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Branch equivalent tax debits of consolidated BETA groups [Repealed] Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 105 Consolidated BETA payment of FDP [Repealed] Section OP 105: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2482 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 108B OP 106 Consolidated BETA reduction of FDP [Repealed] Section OP 106: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 107 Consolidated BETA refund of income tax [Repealed] Section OP 107: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 108 Consolidated BETA debit for loss of shareholder continuity [Repealed] Section OP 108: repealed (with effect on 30 June 2009), on 6 October 2009, by section 479(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Debit if credit balance at beginning of ﬁrst affected income year [Repealed] Heading: repealed (with effect on 30 June 2009), on 7 September 2010, by section 110 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
OP 108B Consolidated BETA group with credit balance at beginning of ﬁrst affected income year [Repealed] OP 108B: repealed (with effect on 30 June 2009), on 7 September 2010, by section 110 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
2483 Part O s OP 108B Income Tax Act 2007 Reprinted as at 29 May 2012 Table O25: branch equivalent tax credits of consolidated BETA groups Row Branch equivalent tax credit Credit date Further deﬁned Opening credit balance 1 April section OA 7 [Repealed] Debit balance applied to satisfy income tax liability day of election section OP 101 Refund of FDP day of refund section OP 103 Credit for loss of shareholder continuity time of loss of continuity section OP 104 Table O25 row 2: repealed (with effect on 30 June 2009), on 6 October 2009, by section 481(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O25 row 5: amended (with effect on 1 April 2008), on 7 December 2009, by section 100 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Table O26: branch equivalent tax debits of consolidated BETA groups [Repealed] Table O26: repealed (with effect on 30 June 2009), on 6 October 2009, by section 482(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
2484 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 111 Consolidated groups and policyholder credit accounts [Repealed] Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Introductory provision [Repealed] Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 109 Policyholder credit accounts of consolidated groups [Repealed] Section OP 109: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Policyholder credits of consolidated groups [Repealed] Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 110 Consolidated PCA transfer from imputation credit account [Repealed] Section OP 110: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 111 Consolidated PCA transfer from FDP account [Repealed] Section OP 111: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2485 Part O s OP 112 Income Tax Act 2007 Reprinted as at 29 May 2012 OP 112 Consolidated PCA group company’s credit [Repealed] Section OP 112: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 113 Consolidated PCA maximum deﬁcit debit in FDP account [Repealed] Section OP 113: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 114 Consolidated PCA reduced deﬁcit debit in FDP account [Repealed] Section OP 114: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Policyholder debits of consolidated groups [Repealed] Heading: repealed, on 1 July 2010, by section 483(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

OP 115 Consolidated PCA payment of tax relating to policyholder base [Repealed] Section OP 115: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
OP 116 Consolidated PCA transfer to imputation credit account [Repealed] Section OP 116: repealed, on 1 July 2010, by section 483(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2486 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OP 116 Table O27: policyholder credits of consolidated groups [Repealed] Table O27: repealed, on 1 July 2010, by section 484(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Table O28: policyholder debits of consolidated groups [Repealed] Table O28: repealed, on 1 July 2010, by section 484(1) of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2487 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart OZ—Terminating provisions Contents OZ 1 No imputation credit for pre-imputation tax paid OZ 2 No imputation debit for pre-imputation refund OZ 3 Overpaid income tax or foreign dividend payment for pre-imputation income year Page 2488 2489 2489 OZ 4 Terminating modiﬁcations to debits for loss of shareholder 2490 continuity OZ 5 ASCA lost excess available subscribed capital OZ 6 ASCA redemption of unused investments OZ 7 Memorandum accounts in transitional period OZ 7B Maori authority credit ratios for transitional period OZ 8 Attaching imputation credits and FDP credits: maximum permitted ratio OZ 9 Benchmark dividends: ratio change OZ 10 Modifying ratios for imputation credits and FDP credits OZ 11 Tax credits for imputation credits and FDP credits OZ 12 Tax credits for non-resident investors OZ 13 Fully credited dividends: modifying actual ratio OZ 14 Dividends from qualifying companies OZ 15 Attaching imputation credits and notional distributions: modifying amounts OZ 16 BETA reductions OZ 17 CTRA reductions [Repealed] OZ 18 Credit-back of PCA balance 2490 2492 2493 2493 2495 2496 2497 2498 2500 2502 2503 2503 2504 2505 2505 OZ 1 No imputation credit for pre-imputation tax paid No imputation credit arises in the imputation credit account of an imputation credit account (ICA) company for a payment of income tax imposed for a pre-imputation income year.
Deﬁned in this Act: ICA company, imputation credit, imputation credit account, income tax, pay, pre-imputation income year Compare: 2004 No 35 s ME 4(1)(a)(viii) 2488 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 3 OZ 2 No imputation debit for pre-imputation refund No imputation debit arises in the imputation credit account of an ICA company for a refund of income tax for a pre-imput- ation income year.
Deﬁned in this Act: ICA company, imputation credit account, imputation debit, income tax, pre-imputation income year Compare: 2004 No 35 s ME 5(1)(e)(i) OZ 3 Overpaid income tax or foreign dividend payment for pre-imputation income year Debit (1) An ICA company has an imputation debit for an amount of overpaid income tax and foreign dividend payment (FDP) that is applied, when the company is not a foreign dividend pay- ment account (FDPA) company, to satisfy the company’s in- come tax liability under section BB 1 (Imposition of income tax) for a pre-imputation income year.
Subsection (2) over- rides this subsection.

(2) (3) (4) No debit The debit does not include an amount of overpaid income tax and FDP that is— (a) paid before an imputation debit under section OB 41 (ICA debit for loss of shareholder continuity); and no more than the debit for loss of shareholder continuity.

(b) Table references The imputation debit in subsection (1) is referred to in table O2: imputation debits, row 11 (overpayment of income tax or FDP).
The imputation debit in subsection (2)(a) is referred to in table O2: imputation debits, row 14 (debit for loss of shareholder continuity).

Debit date The debit date is the day the amount is applied.
Deﬁned in this Act: amount, company, FDP, FDPA company, ICA company, imputation credit account, imputation debit, income tax, income tax liability, pay, pre-imputation income year, shareholder Compare: 2004 No 35 s ME 5(1)(n) 2489 Part O s OZ 4 Income Tax Act 2007 Reprinted as at 29 May 2012 OZ 4 Terminating modiﬁcations to debits for loss of shareholder continuity The terminating modiﬁcations that apply under section OA 8(8) (Shareholder continuity requirements for memoran- dum accounts) are— (a) the shareholder continuity requirement does not apply to a credit that arises on or before 16 December 1988; and credits arising after 16 December 1988 and before 1 April 1992 are treated as 1 credit arising on 1 April 1992 and, until such time as the credit can be treated as cancelled by later debits,— (i) (b) the shareholder continuity requirement applying to the credit is the earlier version of the require- ment incorporated in section 394E(2)(g) of the Income Tax Act 1976 (despite its repeal and re- placement by section 51 of the Income Tax Act Amendment Act (No 2) 1992); and the earlier version of the requirement of section 394E(2)(g) applies by reading the ﬁgure “66” in- stead of the ﬁgure “75”.
(ii) Deﬁned in this Act: shareholder Compare: 2004 No 35 ss ME 5(4), MG 5(4) OZ 5 ASCA lost excess available subscribed capital When this section applies This section applies when a public unit trust or a group invest- ment fund that derives category A income— (a) is in existence between 17 October 2002 and 30 Sep- tember 2003 (both dates inclusive); and has redeemed a unit in the trust or fund; and the slice rule was used to determine the tax treatment of the proceeds from the redemption; and the amount of the available subscribed capital, calcu- lated on a per unit basis, is greater than the proceeds from the redemption for the unit.
(b) (c) (d) (1) 2490 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 5 (2) Calculating opening balance The trust or fund may choose for the period to calculate an opening credit balance using 1 of the methods set out in sub- sections (3) and (4).

Method 1 (3) Method 1 requires the trust or fund to calculate the actual amount of available subscribed capital lost, that is the differ- ence, in total, between the amount paid on subscription for a unit and the amount paid on redemption of the unit.
Method 2 (4) Method 2 requires the trust or fund to make a calculation for the notional winding up of the trust or fund by taking the fol- lowing steps: (a) step 1: determine the total amount of income tax that would be payable on liquidation, treating the value of assets and liabilities as determined at their market value at the date of the notional liquidation according to pro- visions applying at that date: step 2: determine the amount of notional credits that are available after notional tax is paid in relation to them: step 3: determine the amount of notional credits re- quired to fully impute, for each unit holder, the payment of a redemption dividend, and aggregate the amounts, applying the maximum imputation ratio to the total amount: step 4: establish the imputation credit shortfall between the notional credits under step 2 and the credits required under step 3.
(b) (c) (d) (5) (6) Opening balance The amount of the opening balance is— (a) (b) the amount of the difference for method 1; and the shortfall referred to in subsection (4)(d) for method 2.
Certain causes of shortfalls For the purposes of subsection (4), the structural features of the taxation and imputation systems that would allow a company that does not issue shares on terms subject to section CD 22(4) (Returns of capital: off-market share cancellations) to fully 2491 Part O s OZ 6 Income Tax Act 2007 Reprinted as at 29 May 2012 impute a distribution made on the liquidation of the company, include the tax effects of— (a) non-taxable gains and losses, including exempt income; and imputation credits lost because shareholder continuity is lost; and foreign tax credits; and retained earnings generated before the trust or fund es- tablished an imputation credit account.
(b) (c) (d) (7) Date of notional liquidation, orderly calculations For the purposes of this section,— (a) (b) the date of notional liquidation is the date chosen by the trust or fund falling in the period referred to in subsec- tion (1)(a): a calculation under this section must be undertaken in a manner consistent with the preparation of ﬁnancial statements and unit pricing calculations, based on an orderly realisation of assets in the ordinary course of business and demonstrable market valuations.
Deﬁned in this Act: amount, available subscribed capital, business, category A income, company, dividend, exempt income, ﬁnancial statements, foreign tax, group investment fund, imputation credit, imputation credit account, imputation ratio, liquidation, pay, public unit trust, share, shareholder, slice rule Compare: 2004 No 35 ss MJ 1(2), MJ 4, MJ 5(1) Section OZ 5(1)(d): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 121(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section OZ 5(6)(a): substituted (with effect on 30 June 2009), on 6 October 2009, by section 485(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OZ 5 compare note: amended (with effect on 1 April 2008), on 29 Au- gust 2011, by section 121(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
OZ 6 ASCA redemption of unused investments When this section applies The section applies when a public unit trust or a group invest- ment fund that derives category A income— (a) redeems a share within the meaning in paragraphs (c) and (d) of the deﬁnition of share in section YA 1 (Def- initions); and (1) 2492 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 7B (b) has never established an ASC account.
(2) Election The company may choose to establish an ASC account, and the only ASC credit arising in the account is an ASC credit for an opening balance calculated under section OZ 5(5).

Closing balance (3) An opening balance under subsection (2) is treated as the clos- ing balance of the account.
Deﬁned in this Act: ASC account, ASC credit, category A income, complying trust, group investment fund, public unit trust, share Compare: 2004 No 35 s MJ 7 OZ 7 Memorandum accounts in transitional period Unless the context otherwise requires, sections OZ 8 to OZ 15 apply for a period (the transitional period)— (a) beginning the ﬁrst day of a person’s 2011–12 income year; and ending on 31 March 2013.
(b) Deﬁned in this Act: income year Section OZ 7: substituted, on 1 October 2010, by section 14 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

OZ 7B Maori authority credit ratios for transitional period (1) (2) When this section applies This section applies when a Maori authority makes a taxable Maori authority distribution in the transitional period referred to in section OZ 7.
Application of modiﬁed sections OZ 8 to OZ 15 Sections OZ 8 to OZ 11 and OZ 13 apply for the transitional period to the Maori authority and the taxable Maori authority distribution as if,— (a) for each section,— (i) a reference to a company had been replaced by a reference to a Maori authority: a reference to a dividend had been replaced by a reference to a taxable Maori authority distribu- tion: (ii) 2493 Part O s OZ 7B Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) (iv) (v) (vi) a reference to an imputation credit account had been replaced by a reference to a Maori authority credit account: a reference to an imputation credit had been re- placed by a reference to a Maori authority credit: a reference to a benchmark dividend had been re- placed by a reference to a benchmark distribu- tion: a reference to an imputation ratio had been re- placed by a reference to a Maori authority credit ratio: (vii) a reference to an FDP account or FDP credit or FDP ratio had been omitted: (b) (c) (d) (ii) in section OZ 8(2), the reference to 30% had been re- placed by a reference to 19.5%: in section OZ 9,— (i) in subsection (1)(b), the reference to sections OB 61(4) and OC 28(4) had been replaced by a reference to section OK 20(3): in subsection (1)(c)(ii), the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5: in subsection (3)(b), the reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5: in section OZ 10,— (i) (iii) in subsection (1)(b), a reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and a reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5: subsection (1)(b)(ii) and (iii) were omitted: in subsection (2), the reference to sections LE 8, LE 9, LF 6, and LF 7 had been replaced by a reference to section LO 3: in subsection (2), the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5: (ii) (iii) (iv) (e) in section OZ 11,— 2494 Reprinted as at
 29 May 2012 Income Tax Act 2007 Part O s OZ 8 (i) (ii) (iii) (iv) (v) (ii) in subsection (1)(b)(i), the reference to a ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5: subsection (1)(b)(ii) and (iii) had been omitted: in subsection (1)(c), a reference to a new com- pany tax rate person had been replaced by a refer- ence to a Maori authority that uses a 17.5% basic tax rate for the 2011–12 income year or later in- come years: in subsection (2), in the formula, the ﬁgure 0.28 had been replaced by the ﬁgure 17.5: in subsection (3), the reference to section LE 1(1) or LF 1(1) had been replaced by a reference to section LO 1(1): subsections (4) and (5) had been omitted: in subsection (1), the reference to the ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5 and the reference to a ratio of 30/70 had been replaced by a reference to a ratio of 19.5/80.5: in subsection (2), the reference to the ratio of 28/72 had been replaced by a reference to a ratio of 17.5/82.5.
(f) (vi) in section OZ 13,— (i) Deﬁned in this Act: benchmark distribution, income year, Maori authority, Maori authority credit, Maori authority credit account, Maori authority credit ratio, taxable Maori authority distribution Section OZ 7B: inserted (with effect on 1 October 2010), on 21 December 2010, by section 120 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 8 Attaching imputation credits and FDP credits: maximum permitted ratio (1) When this section applies This section applies when— (a) a company pays a dividend in the transitional period; and 2495 Part O s OZ 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (b) the company has a credit balance in its imputation credit account and FDP account from income, expenditure, memorandum account debits, credits, and balances, re- funds, tax, tax credits, transfers, amounts withheld, or other items dealt with, arising, or calculated using an old company tax rate.
Rate applying for transitional period If the amount of the imputation credit or FDP credit attached to the dividend is limited by the maximum permitted ratio set out in section OA 18 (Calculation of maximum permitted ra- tios), the company may choose to treat the item tax rate in the formula in section OA 18(2) as 30%.
Deﬁned in this Act: amount, company, dividend, FDP account, FDP credit, imputation credit, imputation credit account, income, maximum permitted ratio, tax credit, tax year, transitional period Section OZ 8: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 8(2): amended, on 1 October 2010, by section 15 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 8 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 9 Benchmark dividends: ratio change When this section applies This section applies when— (a) (b) (c) a company pays a dividend in the transitional period; and the dividend is a later dividend for the purposes of sec- tions OB 61(4) and OC 28(4) (which relate to the bench- mark dividend rules), as applicable; and the relevant benchmark dividend— (i) (ii) was 1 to which section OZ 8 applied; or has a ratio of 30/70, for a reason other than the application of section OZ 8.
When ratio treated as same as ratio for benchmark dividend If, in the cases set out in subsection (3), the imputation ratio or FDP ratio of the later dividend is less than that of the relevant benchmark dividend, the ratio is treated as the same as that of the relevant benchmark dividend.
(1) (2) 2496 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 10 (3) Cases The cases referred to in subsection (2) are the following: (a) in the case of a benchmark dividend described in sub- section (1)(c)(i), section OZ 8 does not apply to the later dividend through the lack of a relevant credit balance described in section OZ 8(1)(b): in the case of a benchmark dividend described in sub- section (1)(c)(ii), the later dividend has a ratio of 28/72.
Deﬁned in this Act: benchmark dividend, company, dividend, FDP ratio, im- putation ratio, transitional period (b) Section OZ 9: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 9(1)(c)(ii): amended, on 1 October 2010, by section 16(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 9(3)(b): amended, on 1 October 2010, by section 16(2) of the Tax- ation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 9 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 10 Modifying ratios for imputation credits and FDP credits (1) When this section applies This section applies when— (a) (b) a person derives a dividend in the period from 1 October 2010 to 31 March 2013; and the dividend and the imputation credits and FDP credits attached to the dividend, as applicable, have— (i) an imputation ratio greater than 28/72 and less than or equal to 30/70; or an FDP ratio greater than 28/72 and less than or equal to 30/70; or a combined imputation and FDP ratio greater than 28/72 and less than or equal to 30/70.
(ii) (iii) (2) Ratio applying For the purposes of sections LE 8, LE 9, LF 6, and LF 7 (which relate to tax credits for imputation credits and FDP credits), if the amount of the imputation credit or FDP credit, as ap- plicable, is limited by the maximum permitted ratio set out in 2497 Part O s OZ 11 Income Tax Act 2007 Reprinted as at 29 May 2012 section OA 18 (Calculation of maximum permitted ratios), the relevant ratio is treated as 30/70.
Deﬁned in this Act: combined imputation and FDP ratio, dividend, FDP credit, FDP ratio, imputation credit, imputation ratio, maximum permitted ratio, tran- sitional period Section OZ 10: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 10(1)(a): amended, on 1 October 2010, by section 17(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 10(1)(b)(i): amended, on 1 October 2010, by section 17(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 10(1)(b)(i): amended, on 1 October 2010, by section 17(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 10(1)(b)(ii): amended, on 1 October 2010, by section 17(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 10(1)(b)(ii): amended, on 1 October 2010, by section 17(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 10(1)(b)(iii): amended, on 1 October 2010, by section 17(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 10(1)(b)(iii): amended, on 1 October 2010, by section 17(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 10(2): amended, on 1 October 2010, by section 17(3) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).

Section OZ 10(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 486(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section OZ 10 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 11 Tax credits for imputation credits and FDP credits When this section applies This section applies when— (a) a person— (i) (ii) derives a dividend in the transitional period, if the person is a new company tax rate person that is not a multi-rate PIE: derives a dividend in the period from 1 October 2010 to 31 March 2013, if the person is a new company tax rate person that is a multi-rate PIE; and (1) 2498 Reprinted as at 29 May 2012 (b) Income Tax Act 2007 Part O s OZ 11 the dividend, and the imputation credits and FDP credits attached to the dividend, as applicable, have— (i) an imputation ratio greater than 28/72 and less than or equal to 30/70; or an FDP ratio greater than 28/72 and less than or equal to 30/70; or a combined imputation and FDP ratio greater than 28/72 and less than or equal to 30/70; and (ii) (iii) (2) (3) (4) (5) (c) the person is a new company tax rate person in the period for the dividend.
Imputation ratio and FDP ratio For a ratio described in subsection (1)(b)(i) or (ii), the amount of the tax credit that the person has is calculated using the formula— dividend and credits × 0.28.
Deﬁnition of item in formula In the formula in subsection (2), dividend and credits is the amount of the imputation credit or FDP credit, as applicable, included in the person’s assessable income for the purposes of section LE 1(1) or LF 1(1) (which relate to tax credits for imputation credits and FDP credits), together with the amount of dividend to which the relevant credit is attached.
Combined imputation and FDP ratio For a ratio described in subsection (1)(b)(iii), the total amount of tax credit that the person has is calculated using the for- mula— dividend and credits × 0.28.

Deﬁnition of item in formula In the formula in subsection (4), dividend and credits is the total amount of the imputation credit and FDP credit included in the person’s assessable income for the purposes of sections LE 1(1) and LF 1(1), together with the amount of the dividend to which the credits are attached.
For the purposes of the cal- culation of the total tax credit, imputation credits are reduced before FDP credits.
Deﬁned in this Act: amount, assessable income, basic tax rate, combined im- putation and FDP ratio, dividend, FDP credit, FDP ratio, imputation credit, im- putation ratio, multi-rate PIE, new company tax rate person, tax credit, total tax credit, transitional period 2499 Part O s OZ 12 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OZ 11: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section OZ 11(1)(a): substituted, on 1 October 2010, by section 18(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(1)(b)(i): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(1)(b)(i): amended, on 1 October 2010, by section 18(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11(1)(b)(ii): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(1)(b)(ii): amended, on 1 October 2010, by section 18(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(1)(b)(iii): amended, on 1 October 2010, by section 18(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11(1)(b)(iii): amended, on 1 October 2010, by section 18(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(1)(c): amended, on 1 October 2010, by section 18(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(2) formula: amended, on 1 October 2010, by section 18(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11(4) formula: amended, on 1 October 2010, by section 18(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 11 list of deﬁned terms multi-rate PIE: inserted, on 1 October 2010, by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11 list of deﬁned terms new company tax rate person: inserted, on 1 October 2010, by section 18(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 11 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 12 Tax credits for non-resident investors When this section applies This section applies when— (a) (b) a company pays or derives a dividend with an imput- ation credit attached in the transitional period; and the dividend and imputation credit, to the extent to which, in the absence of subpart LP (Tax credits for supplementary dividends),— (i) the combined imputation and FDP ratio is greater than 28/72 and less than or equal to 30/70; or the imputation ratio is greater than 28/72 and less than or equal to 30/70; and (ii) (1) 2500 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 12 (2) (3) (4) (5) (c) section LP 2(1) (Tax credits for supplementary divi- dends) applies to the company, or the company is a sup- plementary dividend holding company.
When ratio equal to old rate For a ratio described in subsection (1)(b)(i) or (ii) that is equal to 30/70, then any tax credit that the company has is calculated using the formula in section LP 2(2), treating 54/119 as 7/17.
When ratio less than old rate For a ratio described in subsection (1)(b)(i) or (ii) that is less than 30/70, then, to the extent to which a part of the amount of the dividend and imputation credit has a ratio of 30/70 through the application of section OZ 8, any tax credit that the company has is calculated using the formula in section LP 2(2), treating 54/119 as 7/17.
Benchmark calculations In the application of sections GB 35, GB 36, OA 18, OB 60, OB 61, OC 28 (which relate to imputation and FDP credit ratios) under section LP 5 (Application of benchmark dividend rules and imputation credit ratio), the provisions apply using the ratio 30/70 and the old company tax rates.
Relationship with exempt income rules If the company derives a dividend to which this section applies, item tax rate in the formula in section LP 8(2) (Relationship with exempt income rules) is treated as 30%, to the extent to which a part of the supplementary dividend was calculated as described in subsection (2) or (3).
Deﬁned in this Act: amount, combined imputation and FDP ratio, company, dividend, imputation credit, imputation ratio, non-resident, pay, supplemen- tary dividend, supplementary dividend holding company, tax credit, transitional period Section OZ 12: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 12(1)(b)(i): amended, on 1 October 2010, by section 19(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(1)(b)(i): amended, on 1 October 2010, by section 19(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 12(1)(b)(ii): amended, on 1 October 2010, by section 19(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 12(1)(b)(ii): amended, on 1 October 2010, by section 19(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
2501 Part O s OZ 13 Income Tax Act 2007 Reprinted as at 29 May 2012 Section OZ 12(2): amended, on 1 October 2010, by section 111(1) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).

Section OZ 12(2): amended, on 1 October 2010, by section 19(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 12(2): amended, on 1 October 2010, by section 19(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(2): amended (with effect from 1 April 2008), on 29 May 2008, by section 37(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remed- ial Matters) Act 2008 (2008 No 36).

Section OZ 12(3): amended, on 1 October 2010, by section 111(2) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).

Section OZ 12(3): amended, on 1 October 2010, by section 19(3)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(3): amended, on 1 October 2010, by section 19(3)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 12(3): amended (with effect from 1 April 2008), on 29 May 2008, by section 37(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remed- ial Matters) Act 2008 (2008 No 36).

Section OZ 12(4): amended, on 1 October 2010, by section 19(4) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).
Section OZ 12(5): amended, on 1 October 2010, by section 19(5) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).

Section OZ 12 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 13 Fully credited dividends: modifying actual ratio What this section applies to This section applies in the transitional period to a dividend for which, in the absence of this section, the actual ratio under sec- tion CD 43(26) (Available subscribed capital (ASC) amount) is greater than 28/72 and less than or equal to 30/70.

Ratio for calculation In the calculation under section CD 43(26), the part of the dividend that is fully credited, the actual ratio is treated as 28/72.
Deﬁned in this Act: dividend, fully credited, transitional period Section OZ 13: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 13(1): amended, on 1 October 2010, by section 20(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
(1) (2) 2502 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 15 Section OZ 13(1): amended, on 1 October 2010, by section 20(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 13(2): amended, on 1 October 2010, by section 20(2) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).

Section OZ 13 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 14 Dividends from qualifying companies (1) (2) When this section applies This section applies when— (a) a qualifying company pays a dividend in the transitional period; and section OZ 8 applies to the dividend.

(b) Exempt income In the calculation under section HA 14 (Dividends paid by qualifying companies) the extent to which the dividend is ex- empt income of the person, item tax rate in the formula in section HA 15(2) (Fully imputed dividends) is treated as 0.30.
Deﬁned in this Act: dividend, exempt income, qualifying company, transitional period Section OZ 14: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 14(2): amended, on 1 October 2010, by section 21 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 14 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 15 Attaching imputation credits and notional distributions: modifying amounts (1) When this section applies This section applies when— (a) (b) a statutory producer board or a co-operative company determines to pay a cash distribution or make a notional distribution in the transitional period; and the board or company has a credit balance in its imput- ation credit account from income, expenditure, memo- randum account debits, credits, and balances, refunds, tax, tax credits, transfers, amounts withheld, or other 2503 Part O s OZ 16 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (4) (5) items dealt with, arising, or calculated using an old com- pany tax rate.
Statutory producer boards’ imputation credits In the calculation under section OB 73(4) (Statutory producer boards attaching imputation credits to cash distributions), the board may choose to treat item tax rate in the formula as 30%.

Statutory producer boards’ notional distributions In the calculation under section OB 75(2) (Statutory producer boards’ notional distributions that are dividends), the board may choose to treat item tax rate in the formula as 30%.
Co-operative companies’ imputation credits In the calculation under section OB 78(3) (Co-operative com- panies attaching imputation credits to cash distributions), the company may choose to treat item tax rate in the formula as 30%.

This subsection does not apply to a Maori authority.
Co-operative companies’ notional distributions In the calculation under section OB 80(2) (Co-operative com- panies’ notional distributions that are dividends), the company may choose to treat item tax rate in the formula as 30%.

This subsection does not apply to a Maori authority.
Deﬁned in this Act: amount, co-operative company, imputation credit account, income, Maori authority, statutory producer board, tax credit, transitional period Section OZ 15: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 15(2): amended, on 1 October 2010, by section 22(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 15(3): amended, on 1 October 2010, by section 22(b) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).

Section OZ 15(4): amended, on 1 October 2010, by section 22(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 15(5): amended, on 1 October 2010, by section 22(d) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).
Section OZ 15 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
OZ 16 BETA reductions What this section applies to This section applies to— (1) 2504 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 18 (2) (a) (b) a credit and a debit in the branch equivalent tax account of a company or a consolidated group before the ﬁrst day of their 2011–12 income year: a credit and a debit arising to the branch equivalent tax account of a company or a consolidated group on or after the ﬁrst day of their 2011–12 income year, if the credit and debit relate to their 2010–11 or earlier income years.
Reduction The amount of the credit and debit are reduced by multiplying the amount by 28/30.

Deﬁned in this Act: amount, branch equivalent tax account, company, consoli- dated group, income year Section OZ 16: added, on 1 April 2008, by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section OZ 16(1)(a): amended, on 1 October 2010, by section 23(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section OZ 16(1)(b): amended, on 1 October 2010, by section 23(1)(b)(i) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 16(1)(b): amended, on 1 October 2010, by section 23(1)(b)(ii) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section OZ 16(2): amended, on 1 October 2010, by section 23(2) of the Taxa- tion (Budget Measures) Act 2010 (2010 No 27).
Section OZ 16 compare note: repealed (with effect on 1 April 2008), on 21 De- cember 2010, by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

OZ 17 CTRA reductions [Repealed] Section OZ 17: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 126(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
OZ 18 Credit-back of PCA balance (1) When this section applies This section applies for a life insurer immediately before a day (the application day) that is— (a) 1 July 2010, if the life insurer does not have an early life regime application day, or 2505 Part O s OZ 18 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) their early life regime application day, if the life insurer does have an early life regime application day.
Credit-back Immediately before the application day,— (a) (b) the credit balance of a life insurer’s policyholder credit account is credited as an imputation credit to the life in- surer’s imputation credit account, and the policyholder credit account is debited accordingly: the credit balance of a consolidated group’s policy- holder credit account is credited as an imputation credit to the consolidated group’s imputation credit account, and the consolidated group’s policyholder credit ac- count is debited accordingly.
Deﬁned in this Act: early life regime application day consolidated group, imput- ation credit, imputation credit amount, life insurer, policyholder credit account Section OZ 18: added, on 30 June 2010, by section 487 of the Taxation (Inter- national Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(2) 2506 Reprinted as at 29 May 2012 Income Tax Act 2007 Part O s OZ 18 Part R General collection rules Subpart RA—General withholding and payment obligations Contents Introductory provisions RA 1 What this Part does RA 2 Amounts treated as income tax Payment and withholding obligations Provisional tax obligations RA 3 Terminal tax obligations RA 4 RA 5 Tax obligations for employment-related taxes RA 6 Withholding and payment obligations for passive income RA 6B Withholding and payment obligations for retirement scheme contributions Payment of tax by public authorities RA 7 RA 8 Liability of persons receiving payments or beneﬁts RA 9 Treatment of amounts withheld as received RA 10 When obligations not met RA 11 Adjustment to correct errors: certain underpayments RA 12 Adjustment to correct errors: certain excess amounts Payment dates RA 13 Payment dates for terminal tax RA 14 Payment dates for provisional tax RA 15 Payment dates for interim and other tax payments RA 16 Payment date when taxable activity ends RA 17 Payment date when RWT exemption certiﬁcate expires RA 18 Payment date for emigrating companies Page 2508 2509 2509 2509 2510 2511 2512 2512 2512 2512 2513 2514 2515 2517 2518 2518 2521 2522 2522 RA 19 Refunds of excess amounts or when amounts mistakenly 2523 Refunds paid RA 20 Amalgamation of companies Amalgamations Regulations RA 21 Regulations 2523 2524 2507 Part R s RA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 RA 22 Limits on application of other provisions for purposes of 2526 Application of other provisions PAYE rules RA 23 Application of other provisions for purposes of ESCT rules and NRWT rules RA 24 Application of other provisions for purposes of RSCT 2526 2527 rules Introductory provisions RA 1 What this Part does This Part provides the rules to require a person to pay to the Commissioner interim and terminal payments of tax and other amounts payable under the Inland Revenue Acts.
The Part provides for— (a) a person’s general withholding and payment obliga- tions; and the payment of terminal tax, see subpart RB; and the payment of provisional tax, see subpart RC; and the payment of the following employment-related taxes, see subpart RD: (i) (ii) (iii) pay-as-you-earn (PAYE): fringe beneﬁt tax (FBT): employer’s (ESCT); and superannuation contribution tax the payment of resident withholding tax (RWT), see subpart RE; and the payment of non-resident withholding tax (NRWT), see subpart RF; and [Repealed] the payment of retirement scheme contribution tax (RSCT), see subpart RH; and the treatment of refunds by the Commissioner, see sub- part RM; and the use of intermediaries in the tax system, see subpart RP.
(b) (c) (d) (e) (f) (g) (gb) (h) (i) Deﬁned in this Act: amount, Commissioner, employer’s superannuation con- tribution, ESCT, FBT, fringe beneﬁt tax, Inland Revenue Acts, intermediary, 2508 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 4 NRWT, pay, PAYE, provisional tax, retirement scheme contribution, RSCT, RWT, tax, terminal tax Section RA 1(g): repealed (with effect on 30 June 2009), on 6 October 2009, by section 488(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 1(gb): inserted, on 1 April 2008, by section 521(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RA 1 list of deﬁned terms FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 488(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 1 list of deﬁned terms retirement scheme contribution: inserted, on 1 April 2008, by section 521(2) of the Taxation (Business Taxation and Re- medial Matters) Act 2007 (2007 No 109).

Section RA 1 list of deﬁned terms RSCT: inserted, on 1 April 2008, by sec- tion 521(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RA 2 Amounts treated as income tax The provisions of this Act and the Tax Administration Act 1994 apply in relation to an amount that a person is liable to pay under this Part as if the amount were income tax imposed under section BB 1 (Imposition of income tax).
Deﬁned in this Act: amount, income tax, pay Compare: 2004 No 35 ss MB 12, NC 20(1), ND 1W(2), NE 7(2), NF 13, NG 17(2), NH 3(7) Section RA 2 compare note: amended (with effect on 1 April 2008), on 7 De- cember 2009, by section 101(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Payment and withholding obligations RA 3 Terminal tax obligations A person liable under section BC 8 (Satisfaction of income tax liability) to pay an amount of terminal tax for a tax year must pay the amount to the Commissioner under subpart RB (Terminal tax) by the due date.
Deﬁned in this Act: amount, Commissioner, pay, tax year, terminal tax Compare: 2004 No 35 ss BC 9, MC 1 RA 4 Provisional tax obligations A person liable to pay provisional tax must pay instalments on account of their income tax liability for a tax year to the 2509 Part R s RA 5 Income Tax Act 2007 Reprinted as at 29 May 2012 Commissioner under subpart RC (Provisional tax) by the due dates.
Deﬁned in this Act: Commissioner, income tax liability, pay, provisional tax, tax year Compare: 2004 No 35 ss BB 2(3), MB 4 RA 5 Tax obligations for employment-related taxes Withholding and payment obligations (1) A person who makes a payment or provides a beneﬁt of 1 of the following kinds must either withhold and pay, or pay, the amount of tax for the payment or beneﬁt to the Commis- sioner under subpart RD (Employment-related taxes) by the due dates: (a) (b) (c) a PAYE income payment: a fringe beneﬁt: an employer’s superannuation cash contribution.
Timing for PAYE income payments (2) An amount of tax withheld from a PAYE income payment must be withheld at the time the person makes the payment.
Deﬁned in this Act: amount of tax, Commissioner, employer’s superannuation cash contribution, fringe beneﬁt, pay, PAYE income payment Compare: 2004 No 35 ss BE 1(1), (4), (5), NC 15, ND 1, NE 3 Section RA 5(1) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 489(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 5(1)(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 489(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 5(2) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 489(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 5(2): added (with effect on 1 April 2008), on 6 October 2009, by section 489(3) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section RA 5 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 489(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 5 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 489(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2510 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 6 RA 6 Withholding and payment obligations for passive income Resident passive income (1) A person who makes a payment of resident passive income must withhold and pay RWT for the payment to the Commis- sioner under subpart RE (Withholding tax on resident passive income (RWT)) by the due dates.
Non-resident passive income (2) A person who makes a payment of non-resident passive in- come must withhold and pay NRWT for the payment to the Commissioner under subpart RF (Withholding tax on non- resident passive income (NRWT)) by the due dates.

Foreign dividends [Repealed] [Repealed] (3) Timing for payments of passive income (4) An amount of tax withheld under subsections (1) and (2) must be withheld at the time the person makes the payment.
Deﬁned in this Act: Commissioner, company, non-resident passive income, NRWT, pay, resident passive income, RWT Compare: 2004 No 35 ss BE 1(4)–(6), NF 4, NG 11, NH 3 Section RA 6(3) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 490(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 6(3): repealed (with effect on 30 June 2009), on 6 October 2009, by section 490(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 6(4) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 490(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 6(4): inserted (with effect on 1 April 2008), on 6 October 2009, by section 490(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 6 list of deﬁned terms FDP: repealed (with effect on 1 April 2008), on 6 October 2009, by section 490(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 6 list of deﬁned terms foreign dividend: repealed (with effect on 1 April 2008), on 6 October 2009, by section 490(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2511 Part R s RA 6B Income Tax Act 2007 Reprinted as at 29 May 2012 RA 6B Withholding and payment obligations for retirement scheme contributions A person who makes a contribution to a retirement savings scheme must withhold and pay RSCT for the contribution to the Commissioner under subpart RH (Withholding tax on re- tirement scheme contributions) by the due dates.
Deﬁned in this Act: Commissioner, pay, retirement savings scheme, RSCT Compare: 2004 No 35 s NEB 1 Section RA 6B: inserted, on 1 April 2008, by section 522 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

RA 7 Payment of tax by public authorities A public authority that pays an amount under this Act acts within its capacity, whether further appropriation is made or not.
Deﬁned in this Act: amount, pay, public authority Compare: 2004 No 35 s MH 1 RA 8 Liability of persons receiving payments or beneﬁts Despite sections RA 5 and RA 6, a person receiving or deriving a payment or beneﬁt in relation to which an amount of tax must be withheld or paid may be liable under this Part for payment of the tax.
Deﬁned in this Act: amount of tax, pay, tax Compare: 2004 No 35 ss NC 16, NE 2A(1), (2), NF 3, NG 12 RA 9 Treatment of amounts withheld as received Payments treated as received or derived (1) An amount withheld from a payment under this Part, unless a provision in this Part states otherwise,— (a) by the person to whom the payment is made; and at the time the payment is made; and is treated as received— (i) (ii) is treated for the purposes of this Act as derived by the person at the same time and in the same way as they derive the payment from which the amount is withheld; and includes a combined tax and earner-related payment.
(b) (c) 2512 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 10 (2) Exclusion Subsection (1) does not apply to a replacement payment under a share-lending arrangement.
Deﬁned in this Act: amount, combined tax and earner-related payment, pay, replacement payment, share-lending arrangement Compare: 2004 No 35 ss NC 19, NE 6, NF 12, NG 15 RA 10 When obligations not met (1) (2) (3) (4) When this section applies This section applies when— (a) a person liable to withhold an amount of tax for a PAYE income payment, an employer’s superannuation cash contribution, a retirement scheme contribution, a pay- ment of resident passive income, or a payment of non- resident passive income, does not withhold and pay the amount to the Commissioner; or a person liable to pay an amount of tax to the Commis- sioner for a fringe beneﬁt does not pay the amount.
[Repealed] (b) (c) Debt payable to Commissioner The amount is a debt payable to the Commissioner.

When payable The amount is due to be paid to the Commissioner on the rele- vant due date after the end date for the original liability set out in section RA 15.

Premiums and levies The amount includes a combined tax and earner-related pay- ment.
Deﬁned in this Act: amount, amount of tax, combined tax and earner-related payment, Commissioner, employer’s superannuation cash contribution, fringe beneﬁt, non-resident passive income, pay, PAYE income payment, resident pas- sive income Compare: 2004 No 35 ss NC 5(2), NC 16, NC 20(1), ND 1, ND 1W(2), NE 5, NEB 4(1), NF 3, NF 4, NF 13, NG 12, NG 13 Section RA 10(1)(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 491(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 10(1)(a): amended, on 1 April 2008, by section 523(1) of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

2513 Part R s RA 11 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RA 10(1)(b): amended (with effect on 30 June 2009), on 6 October 2009, by section 491(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 10(1)(c): repealed (with effect on 30 June 2009), on 6 October 2009, by section 491(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 10 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 491(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 10 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 491(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 10 list of deﬁned terms FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 491(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 10 compare note: amended, on 1 April 2008, by section 523(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RA 11 Adjustment to correct errors: certain underpayments When this section applies This section applies when— (a) a person (the payer) is required to withhold and pay to the Commissioner— (i) RWT in relation to a payment to another person (the payee) of resident passive income that is in- terest or a dividend treated as interest; or (ii) NRWT in relation to a payment to the payee of non-resident passive income; and (b) the payer, through an error, does not withhold some or all of the amount.
Amount withheld from later payment or recovered The payer may— (a) subtract from a later payment to the payee an amount to correct the deﬁciency; or recover from the payee an amount to correct the deﬁ- ciency.
(b) Requirements when withholding from later payment For the purposes of subsection (2)(a),— (1) (2) (3) 2514 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 12 (a) (b) the later payment must be a payment of interest, a divi- dend treated as interest, or a payment of non-resident passive income, as applicable; and the payment must be made in the same tax year in which the ﬁrst payment is made.
Deﬁned in this Act: amount, Commissioner, dividend treated as interest, inter- est, non-resident passive income, NRWT, pay, resident passive income, RWT, tax year Compare: 2004 No 35 ss NF 6(1), NG 16A(1) RA 12 Adjustment to correct errors: certain excess amounts (1) (2) When this section applies This section applies when— (a) (b) (b) (c) a person (the payer) is required to withhold and pay to the Commissioner an amount of RWT or NRWT for a payment to another person (the payee); and the payer, through an error, withholds an amount (the excess amount) that is more than the amount required under this Part.
Refunding excess amount of resident passive income For a payment of resident passive income, the payer may pay the excess amount to the payee at any time before the end of the tax year in which the amount of tax is withheld if,— (a) for a payment of interest or a dividend treated as in- terest, an RWT withholding certiﬁcate relating to the amount has either not been sent out or has been returned and cancelled: for a payment of a dividend other than a dividend treated as interest, a shareholder dividend statement relating to the amount has either not been sent out for the purposes of section 29 of the Tax Administration Act 1994 or has been returned and cancelled: for a taxable Maori authority distribution, a notice relat- ing to the amount has either not been given to a member of the Maori authority under section 31 of that Act or has been returned and cancelled.
2515 Part R s RA 12 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) (5) (6) Treatment of amount For the purposes of this section, when the payer pays the ex- cess amount under subsection (2), the amount is no longer treated as RWT.

Amendments to notices If the RWT withholding certiﬁcate, shareholder dividend state- ment, or notice referred to in subsection (2)(c) has been re- turned or cancelled, the payer must provide the payee with an amended certiﬁcate, statement, or notice, as applicable.
Commissioner refunding overpayment If the excess amount has been paid to the Commissioner, the Commissioner must refund the amount of the overpayment to— (a) (b) the payee; or the payer, if they have not subtracted the amount under subsection (6)(a) from a later payment made in relation to the payee.
Payer’s options For the purposes of subsection (5), if the excess amount has been refunded to the payee, the payer may— (a) subtract the amount from an amount paid later to the Commissioner under section RE 21 or RF 13 (which relate to resident passive income and non-resident pas- sive income), noting the action in the statement required under section 50 of the Tax Administration Act 1994; or apply for a refund of the amount under section RM 8 (Overpaid RWT or NRWT).
(b) Overpayment through payee’s act or omission (7) Despite subsections (2) and (5), if the excess amount arises from an act or omission by the payee, the payer must pay the full amount withheld to the Commissioner and is not liable to repay the excess amount to the payee or another person.
Deﬁned in this Act: amount, amount of tax, Commissioner, dividend, dividend treated as interest, interest, Maori authority, non-resident passive income, no- tice, NRWT, pay, resident passive income, RWT, RWT withholding certiﬁcate, shareholder dividend statement, tax year, taxable Maori authority distribution Compare: 2004 No 35 ss NF 6(2)–(4), NF 7(1), (2), NG 16A(2), (3) 2516 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 13 Payment dates RA 13 Payment dates for terminal tax When payment due (1) A person must pay their terminal tax for a tax year by— (a) (b) the 7th day of the month in schedule 3, part A, column G or H (Payment of provisional tax and terminal tax) for the person’s corresponding income year, unless para- graph (b) applies; and the 15th day of January, if January is the month in sched- ule 3, part A, column G or H, for the person’s corres- ponding income year.
(2) (3) (4) Columns G and H For the purposes of subsection (1), the month in schedule 3, part A, column G or H, for the person’s corresponding income year is— (a) the month in column H, if— (i) (ii) the person’s return of income for the income year was linked to a tax agent as described in subsec- tion (4); or the person has asked for an income statement under section 80C of the Tax Administration Act 1994 or has been sent an income statement under section 80D of that Act, and the Commissioner has been notiﬁed that a tax agent will respond to the income statement sent to the person; or (b) the month in column G in any other case.
First occurrence of month For the purposes of subsection (1),— (a) the month in column G is the ﬁrst occurrence of that month after the balance date: the month in column H is the ﬁrst occurrence of that month after the month in column G. (b) Linked to tax agent For the purposes of subsection (2)(a)(i), a return of income is linked to a tax agent if the Commissioner has been notiﬁed that 2517 Part R s RA 14 Income Tax Act 2007 Reprinted as at 29 May 2012 the return is to be ﬁled by the tax agent who has an extension of time under section 37(4) of the Tax Administration Act 1994.
Deﬁned in this Act: Commissioner, corresponding income year, income state- ment, notify, pay, return of income, tax agent, tax year, terminal tax Compare: 2004 No 35 s MC 1 Section RA 13(1)(b): amended (with effect from 1 April 2008), on 29 May 2008, by section 38(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section RA 13(2)(a)(i): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 112(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
RA 14 Payment dates for provisional tax A person must pay their provisional tax for a tax year under section RC 9 (Provisional tax payable in instalments) accord- ing to the relevant cycle of instalments set out in schedule 3, part A, columns A to F (Payment of provisional tax and ter- minal tax).
Deﬁned in this Act: pay, provisional tax, tax year Compare: 2004 No 35 s MB 8(1), (2) RA 15 Payment dates for interim and other tax payments When this section applies This section applies when a person is required— (a) to withhold under section RA 5 an amount of tax for a payment and pay it to the Commissioner; or to withhold and pay, or pay, under section RA 6 an amount to the Commissioner for a payment received or beneﬁt provided by them; or to withhold and pay under section RA 6B an amount of tax to the Commissioner for a retirement scheme con- tribution.
(b) (c) When payment due The person must pay the amount to the Commissioner by the following dates: (a) when the period for which the payment is made is shorter than a month, by the 5th day after the relevant end date: (1) (2) 2518 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 15 (b) when the period for which the payment is made is a month or a period that is longer than a month but not a period referred to in paragraph (c) or (d), by the 20th day of the month after the relevant end date: when the period for which the payment is made is a tax year or income year or both, by 31 May: (c) (cb) despite subsection (3)(c), for FBT payable for the last (d) quarter of a tax year, by 31 May: for a close company that pays FBT on an income year basis, by terminal tax date.
(3) Relevant end dates In this section, an end date means 1 of the following, as ap- plicable: (a) for PAYE and ESCT payable for 2 payment periods in a month under section RD 4(1)(b) or RD 65(3) (which set out the basis for payment of PAYE and ESCT),— (i) for the ﬁrst payment period, the 15th day of the month; and for the second payment period, the last day of the month: (ii) (b) (c) (d) for PAYE, RWT, NRWT, and RSCT payable monthly under section RD 4(1)(a), RE 21(2) and (7), RF 13(3), or RH 2(2) (which set out the basis for payment of PAYE, RWT, NRWT, and RSCT), as applicable, the last day of a month: for FBT payable quarterly under sections RD 58, RD 59, and RD 62 (which set out the basis for payment of FBT), the last day of a quarter: for RWT and NRWT payable by instalment under sec- tion RE 21(3) or RF 13(2) (which set out the basis for payment of RWT and NRWT)— (i) for the ﬁrst instalment, the last day of September; and for the second instalment, the last day of March.
(ii) When payment due in December (4) Despite subsection (2), for the purposes of this section and the payment of PAYE and ESCT to the Commissioner, if the month referred to in subsection (3) is December, the payment is due by 15 January.
2519 Part R s RA 15 Income Tax Act 2007 Reprinted as at 29 May 2012 Discrepancies Subsection (6)— (a) applies when a discrepancy arises in the information that a person is required to provide under,— (i) for resident passive income, section 51(1), (4), or (5) of the Tax Administration Act 1994: for non-resident passive income, section 49(1) or (2) of that Act: (ii) (b) does not apply to an unpaid amount that the Commis- sioner assesses for a particular return period.
Payment dates If an amount of RWT or NRWT remains unpaid, the person required to withhold the amount must pay it to the Commis- sioner no later than— (a) 20 April after the end of the tax year in relation to in- formation provided under section 49(1) or 51(1) of the Tax Administration Act 1994: the last date for providing the information, in relation to information provided under section 49(2) or 51(4) or (5) of that Act.
(b) Non-resident passive income The Commissioner may extend the time for payment of NRWT.
Deﬁned in this Act: amount of tax, assessment, close company, Commissioner, end date, ESCT, FBT, ﬁrst payment period, income year, non-resident pas- sive income, NRWT, pay, PAYE, quarter, resident passive income, retirement scheme contribution, RSCT, RWT, second payment period, tax year, terminal tax Compare: 2004 No 35 ss NC 15, ND 9(2), (3), ND 10, ND 13, ND 14, NE 4, NEB 3(1), NF 4, NG 11, NH 3 Section RA 15(1)(b): amended, on 1 April 2008, by section 524(1) of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RA 15(1)(c): added, on 1 April 2008, by section 524(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RA 15(2)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 492(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 15(2)(c): substituted (with effect on 1 April 2009), on 6 October 2009, by section 492(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

(5) (6) (7) 2520 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 16 Section RA 15(2)(cb): inserted (with effect on 1 April 2009), on 6 October 2009, by section 492(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 15(2)(d): substituted (with effect on 1 April 2008), on 6 October 2009, by section 492(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 15(3)(b): substituted, on 1 April 2008, by section 524(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RA 15(3)(c): substituted (with effect on 30 June 2009), on 6 October 2009, by section 492(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 15 list of deﬁned terms FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 492(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 15 list of deﬁned terms retirement scheme contribution: inserted, on 1 April 2008, by section 524(3) of the Taxation (Business Taxation and Re- medial Matters) Act 2007 (2007 No 109).

Section RA 15 list of deﬁned terms RSCT: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RA 15 compare note: amended, on 1 April 2008, by section 524(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

RA 16 Payment date when taxable activity ends (1) (2) When this section applies This section applies for a month when a registered person is required under section RA 6 to withhold and pay RWT or NRWT, and the person— (a) (b) stops carrying on a taxable activity; or no longer carries on a taxable activity in New Zealand.
Payment to Commissioner The person must pay to the Commissioner by the 20th day of the next month the total amount of tax for all payments relating to the taxable activity to the extent to which an amount of tax remains unpaid.

2521 Part R s RA 17 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Exemption continuing This section does not apply for resident passive income if the person continues to hold an RWT exemption certiﬁcate.
Deﬁned in this Act: amount of tax, Commissioner, NRWT, pay, registered per- son, resident passive income, RWT, RWT exemption certiﬁcate, taxable activity Compare: 2004 No 35 ss NF 4(5), NG 11(4) RA 17 Payment date when RWT exemption certiﬁcate expires (1) (2) (3) When this section applies This section applies in relation to a month of a tax year when an RWT exemption certiﬁcate of a person expires.
Payment to Commissioner The person must pay to the Commissioner by the 20th day of the month following that in which the certiﬁcate expires the total amount of tax withheld by them to the extent to which the amount remains unpaid.

Exclusion This section does not apply if the person continues to be re- quired to withhold RWT through the carrying on of a taxable activity.
Deﬁned in this Act: amount of tax, Commissioner, pay, RWT, RWT exemption certiﬁcate, tax withheld, tax year, taxable activity Compare: 2004 No 35 s NF 4(6) RA 18 Payment date for emigrating companies (1) When this section applies This section applies to an emigrating company that is treated under section FL 2 (Treatment of emigrating companies and their shareholders) as paying a distribution to a shareholder.
Payment (2) On or before the date that is 3 months after the time of emigra- tion, the company must pay to the Commissioner all amounts of tax for resident passive income or non-resident passive in- come withheld in relation to the distribution.
Deﬁned in this Act: amount of tax, Commissioner, emigrating company, non- resident passive income, pay, resident passive income, shareholder, time of emi- gration Compare: 2004 No 35 ss NF 4(6B), NG 11(4B) 2522 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 20 Refunds RA 19 Refunds of excess amounts or when amounts mistakenly paid (1) When this section applies This section applies for a person (the payer) and the withhold- ing of an amount of tax that is more than the amount required to be withheld and paid under this Part (the excess amount) or an amount mistakenly paid, when— (a) the payer withholds and pays to the Commissioner an excess amount of RWT or NRWT: the payer pays FDP of an excess amount: a PAYE intermediary pays an amount of tax for an em- ployer through an error, or when the payment is not funded by the employer, as described in section RM 7 (Refunds to PAYE intermediaries): the result of a calculation for FBT made by an employer under sections RD 50 to RD 53 (which relate to at- tributed beneﬁts and non-attributed beneﬁts) is negative.
(b) (c) (d) (2) Refunds The Commissioner must refund the excess amount to the payer.
Deﬁned in this Act: amount, amount of tax, Commissioner, employer, FBT, FDP, NRWT, pay, PAYE intermediary, RWT Compare: 2004 No 35 ss NBA 7, ND 10(4)(a), NF 7(1), NG 16, NH 4 RA 20 Amalgamation of companies Amalgamations (1) (2) Amalgamated company’s obligation If an amalgamating company ends its existence on a resident’s restricted amalgamation, an unsatisﬁed obligation that the amalgamating company has at the time of the amalgamation to withhold and pay an amount of tax to the Commissioner under this Part is treated as an obligation of the amalgamated company.
Thresholds for close companies For the purpose of determining whether the threshold under section RD 60 (Close company option) has been met, the amal- gamated company is treated as paying the gross amounts of tax 2523 Part R s RA 21 Income Tax Act 2007 Reprinted as at 29 May 2012 withheld under section RA 5(1)(a) and (c) by the amalgamat- ing company in the income year before that in which the amal- gamation takes place.
Deﬁned in this Act: amalgamated company, amalgamating company, amalgam- ation, amount of tax, close company, Commissioner, gross, income year, pay, resident’s restricted amalgamation Compare: 2004 No 35 ss NC 15(7), ND 13(8), ND 14(8), NEB 3(2), NH 4(8) Section RA 20(1) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 493(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 20(2) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 493(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 20(2): added (with effect on 1 April 2008), on 6 October 2009, by section 493(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 20 list of deﬁned terms amalgamation: inserted (with effect on 1 April 2008), on 6 October 2009, by section 493(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 20 list of deﬁned terms close company: inserted (with effect on 1 April 2008), on 6 October 2009, by section 493(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 20 list of deﬁned terms gross: inserted (with effect on 1 April 2008), on 6 October 2009, by section 493(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 20 list of deﬁned terms income year: inserted (with effect on 1 April 2008), on 6 October 2009, by section 493(3) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 20 compare note: amended, on 1 April 2008, by section 525 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RA 21 Regulations Regulations PAYE income payments The Governor-General may make regulations by Order in Council to— (a) declare a particular payment, or particular class of pay- ments, to be included in, or excluded from, the deﬁn- ition of— (i) (ii) salary or wages; or extra pay; or (1) 2524 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 21 (b) (c) schedular payment: (iii) provide further rules in relation to schedular payments as set out in subsection (2): provide that the regulations do not apply to a particu- lar person, or class or persons, on notiﬁcation from the Commissioner.
(2) Schedular payments For the purposes of subsection (1)(b), regulations may be made under this Act or the Tax Administration Act 1994 in relation to schedular payments for the following purposes: (a) to set the amount of tax for a particular schedular pay- ment or particular class of schedular payment: to provide that the Commissioner may, if a person asks, set the rate of tax for a schedular payment to the person: to provide that the amount of tax for a particular schedu- lar payment, class of schedular payment, or schedular payments under a particular threshold is the person’s income tax liability in relation to the relevant kind of income: to provide that an amount of tax must be withheld and paid despite any assignment or charge.
(b) (c) (d) (3) Employment-related loans The Governor-General may make regulations by Order in Council to declare the rate of interest applying to employ- ment-related loans.

Application to quarters (4) When regulations referred to in subsection (3) are made, they apply to quarters starting from a date at least 1 month following the date the regulations were made.
Regulations that reduce the rate of interest from the prescribed rate of interest at the time, if made at least 1 month before the quarter ends, may apply for that quarter.
Deﬁned in this Act: amount of tax, employment-related loan, extra pay, income, income tax liability, interest, notify, pay, prescribed rate of interest, quarter, salary or wages, schedular payment, tax Compare: 2004 No 35 ss NC 21, ND 1F Section RA 21(4): amended (with effect on 1 April 2008), on 6 October 2009, by section 494 of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
2525 Part R s RA 22 Income Tax Act 2007 Reprinted as at 29 May 2012 Application of other provisions RA 22 Limits on application of other provisions for purposes of PAYE rules (1) (2) Amounts not separated For an amount of tax not withheld and paid to the Commis- sioner, the provisions listed in subsection (2) do not require— the separate identiﬁcation of the amounts of a combined (a) tax and earner-related payment that are attributable to— an amount of tax for a PAYE income payment (i) that an employer or PAYE intermediary is re- quired to make under the PAYE rules: an amount that an employer must subtract under the sections referred to in subsection (2)(b) to (d): the bringing of separate proceedings or separate treat- ment for the collection, recovery, or imposition of penalties in relation to an amount of a combined tax and earner-related payment.
(ii) (b) (b) Provisions The sections referred to in subsection (1) are— (a) sections 143, 143A, and 156 to 165 of the Tax Admin- istration Act 1994: section 115 of the Accident Rehabilitation and Com- pensation Insurance Act 1992: section 285 of the Accident Insurance Act 1998: section 221 of the Accident Compensation Act 2001.
(c) (d) Deﬁned in this Act: amount, amount of tax, combined tax and earner-related payment, Commissioner, employer, pay, PAYE income payment, PAYE inter- mediary, PAYE rules Compare: 2004 No 35 s NC 20 Section RA 22(2)(d): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
RA 23 Application of other provisions for purposes of ESCT rules and NRWT rules References For the purposes of the ESCT rules and the NRWT rules, sec- tions 167 and 169 of the Tax Administration Act 1994 apply, modiﬁed as necessary, as if— (1) 2526 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RA 24 (2) (a) (b) (c) a reference to an amount of tax withheld were a refer- ence to ESCT or NRWT, as applicable: a reference to an employer were a reference to a person required to withhold and pay ESCT or NRWT, as ap- plicable: a reference to the PAYE rules were a reference to the ESCT rules or the NRWT rules.
Exclusion [Repealed] [Repealed] Deﬁned in this Act: amount of tax, employer, ESCT, ESCT rules, NRWT, NRWT rules, pay, PAYE rules, tax withheld Compare: 2004 No 35 ss NE 7, NG 17(1) Section RA 23(2) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 495(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RA 23(2): repealed (with effect on 1 April 2008), on 6 October 2009, by section 495(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RA 23 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 495(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RA 24 Application of other provisions for purposes of RSCT rules For the purposes of the RSCT rules, sections 170(2), 171, and 172 of the Tax Administration Act 1994, modiﬁed as neces- sary, apply as if— (a) a reference to an amount of tax withheld were a refer- ence to RSCT: a reference to the RWT rules were a reference to the RSCT rules.
(b) Deﬁned in this Act: amount of tax, RSCT rules, RWT rules Compare: 2004 No 35 s NEB 7(1) Section RA 24: added, on 1 April 2008, by section 526 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
2527 Income Tax Act 2007 Reprinted as at 29 May 2012 Subpart RB—Terminal tax Contents RB 1 RB 2 Payment of terminal tax Income tax liability for non-ﬁling taxpayers for non-resident passive income Schedular income tax liability for ﬁling taxpayers for non-resident passive income RB 4 Using refunds to satisfy tax liabilities RB 3 Page 2528 2528 2528 2529 RB 1 Payment of terminal tax A person must pay their terminal tax for a tax year on the due date set out in section RA 13 (Payment dates for terminal tax).
Deﬁned in this Act: pay, tax year, terminal tax Compare: 2004 No 35 s MC 1 Section RB 1: amended (with effect on 1 April 2008), on 6 October 2009, by section 496(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
RB 2 Income tax liability for non-ﬁling taxpayers for non-resident passive income For the purposes of calculating a person’s terminal tax under section BC 8 (Satisfaction of income tax liability), the income tax liability of a non-ﬁling taxpayer who derives non-resident passive income is determined under section BC 1 (Non-ﬁling and ﬁling taxpayers).
Deﬁned in this Act: income tax liability, non-ﬁling taxpayer, non-resident pas- sive income, terminal tax Compare: 2004 No 35 s BC 1 RB 3 Schedular income tax liability for ﬁling taxpayers for non-resident passive income When this section applies This section applies for the purposes of calculating a ﬁling taxpayer’s terminal tax under section BC 8 (Satisfaction of income tax liability).
(1) 2528 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RB 4 (2) (3) (4) Calculating amount of liability The schedular income tax liability of the ﬁling taxpayer under section BC 7 (Income tax liability of person with schedular income) for each class of non-resident passive income that is schedular income under paragraph (f) of the deﬁnition of schedular income is equal to an amount calculated using the formula— amount of income × tax rate.
Deﬁnition of item in formula In the formula, tax rate is the rate set out in sections RF 7 to RF 10, and RF 12 (which relate to the calculation of NRWT) that applies to the class of non-resident passive income.

No imputation credits If the taxpayer derives a dividend to which subsection (2) ap- plies, they do not have a credit under section LE 1 (Tax credits for imputation credits) for an imputation credit attached to the dividend.
Deﬁned in this Act: amount, dividend, ﬁling taxpayer, imputation credit, non-ﬁling taxpayer, non-resident passive income, NRWT, schedular income, schedular income tax liability, terminal tax Compare: 2004 No 35 ss BC 7, NG 3 Section RB 3(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 497(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RB 4 Using refunds to satisfy tax liabilities If a person is entitled to a refund of an amount of tax from the Commissioner, the amount may be applied under section RM 10 (Using refund to satisfy tax liability) to satisfy a liabil- ity that the person has under the Inland Revenue Acts.
Deﬁned in this Act: amount of tax, Commissioner, Inland Revenue Acts Compare: 2004 No 35 s MD 1(3), (3A) Subpart RC—Provisional tax Contents Introductory provisions RC 1 What this subpart does Page 2531 2529 Income Tax Act 2007 Reprinted as at 29 May 2012 Provisional tax rules and their application RC 2 RC 3 Who is required to pay provisional tax?
RC 4 Choosing to pay provisional tax Calculating provisional tax liability RC 5 Methods for calculating provisional tax liability RC 6 RC 7 Estimation method RC 8 GST ratio method Standard method Instalments of provisional tax Provisional tax payable in instalments RC 9 RC 10 Calculating amount of instalment under standard and estimation methods RC 11 Calculating amount of instalment using GST ratio RC 12 Voluntary payments RC 13 Paying 2 instalments for tax year RC 14 Paying 1 instalment for tax year Requirements for using GST ratio RC 15 Choosing to use GST ratio RC 16 Who may use GST ratio?
RC 17 When GST ratio must not be used RC 18 Changing calculation method RC 19 Disposal of assets Transitional years RC 20 Calculating residual income tax in transitional years RC 21 Paying provisional tax in transitional years RC 22 Calculating instalments in transitional years: standard method 2532 2532 2533 2534 2536 2537 2538 2541 2546 2547 2548 2548 2549 2550 2551 2552 2553 2555 2556 2557 2559 RC 23 Calculating instalments in transitional years: estimation 2560 method RC 24 Calculating instalments in transitional years: GST ratio 2562 method RC 25 Consequences of change in balance date 2562 When persons start or stop paying GST, or change taxable periods RC 26 Registering for GST or cancelling registration RC 27 Payment of provisional tax instalments when GST cycle 2563 2565 changed 2530 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 1 Treatment of groups of companies and amalgamated companies RC 28 Provisional tax rules and consolidated groups RC 29 Residual income tax of consolidated groups RC 30 Consolidated groups using estimation method RC 31 Consolidated groups using GST ratio method RC 32 Wholly-owned groups of companies RC 33 Amalgamated companies: calculating residual income tax 2566 2567 2567 2568 2569 2570 Attribution rule for income from personal services RC 34 Attribution rule for income from personal services 2571 RC 35 Further income tax credited to provisional tax liability 2573 Credits Disaster relief [Repealed] RC 36 Persons affected by adverse events [Repealed] Early-payment discounts RC 37 Availability of early-payment discounts RC 38 Crediting income tax with early-payment discount RC 39 Credit treated as payment of income tax RC 40 Some deﬁnitions 2574 2574 2575 2576 2576 Introductory provisions RC 1 What this subpart does (1) When this subpart applies Sections RC 3 to RC 39 apply, for the purposes of the provi- sional tax rules, to provide— (a) the circumstances in which a person has a provisional tax obligation: a person’s provisional tax liability for a tax year, and the
 methods for calculating the amount payable for the tax year: the number of instalments of provisional tax and the instalment dates for a corresponding income year: how the amount of an instalment of provisional tax is determined: the payment of provisional tax in a transitional year: (b) (c) (d) (e) 2531 Part R s RC 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (f) the application of the rules relating to use of money interest in Part 7 of the Tax Administration Act 1994, and late payment penalties and shortfall penalties in Part 9 of that Act.
Instalment dates In this subpart, a reference to an instalment classiﬁed by the letters A to F is a reference to a date in the table in schedule 3, part A (Payment of provisional tax and terminal tax) on which an instalment of provisional tax is payable for an income year corresponding to a tax year.
Deﬁned in this Act: amount, corresponding income year, income year, instal- ment date, pay, provisional tax, provisional tax rules, shortfall penalty, tax year, transitional year Compare: 2004 No 35 s MB 1 RC 2 Provisional tax rules and their application (1) (2) Meaning The provisional tax rules means— (a) (b) this subpart; and section LB 2 (Tax credits for provisional tax payments); and sections 15N to 15S, 119, 120KB to 120N, 120OE, 139B and 139C, 173P to 173R of the Tax Administra- tion Act 1994.
(c) Application The provisional tax rules apply to a person who is required or who chooses to pay provisional tax.

Deﬁned in this Act: provisional tax, provisional tax rules Compare: 2004 No 35 s OB 1 “provisional tax rules” RC 3 Who is required to pay provisional tax?

Threshold or election (a) (1) A person who is liable to pay provisional tax for a tax year is— a person whose residual income tax for the tax year is more than $2,500; or a person who chooses under section RC 4 to pay provi- sional tax.
(b) 2532 Reprinted as at 29 May 2012 Exclusions Income Tax Act 2007 Part R s RC 4 (2) Despite subsection (1), the following persons do not pay pro- visional tax: (a) (b) (c) (d) a company that does not have a ﬁxed establishment in New Zealand and is not treated as resident in New Zealand: a person referred to in section 33A(1) of the Tax Ad- ministration Act 1994: a non-resident contractor who has not been given an exemption certiﬁcate by the Commissioner for the tax year: a multi-rate PIE that does not choose to calculate and pay tax using the provisional tax calculation option under section HM 44 (Provisional tax calculation op- tion).
No obligation (3) A person has no obligation to pay provisional tax for a tax year if their residual income tax for the preceding tax year is $2,500 or less.
Deﬁned in this Act: Commissioner, company, exemption certiﬁcate, ﬁxed es- tablishment, multi-rate PIE, New Zealand, non-resident, non-resident contrac- tor, pay, provisional tax, resident in New Zealand, residual income tax, tax year Compare: 2004 No 35 ss MB 2, OB 1 “provisional taxpayer” Section RC 3(2)(d): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 498(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 3 list of deﬁned terms multi-rate PIE: inserted, on 1 April 2010, by section 498(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 3 list of deﬁned terms portfolio tax rate entity: repealed, on 1 April 2010, by section 498(2)(a) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
RC 4 Choosing to pay provisional tax Election (1) A person, when ﬁrst providing a return of income for a tax year, may choose to pay provisional tax for the tax year if— (a) they have paid provisional tax of more than $2,500 on or before— (i) the date of instalment F for the corresponding income year; or 2533 Part R s RC 5 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) the ﬁnal instalment date in a transitional year; and (ii) they have, on the day on which the ﬁrst payment of provisional tax is made for the tax year, a reasonable expectation that they are liable to pay provisional tax for the tax year, other than by this election.
Exclusion This section does not apply to a person described in section RC 3(2).
Deﬁned in this Act: corresponding income year, ﬁnal instalment, instalment date, pay, provisional tax, return of income, tax year, transitional year Compare: 2004 No 35 s MB 3 (2) Calculating provisional tax liability RC 5 Methods for calculating provisional tax liability Choice of method (1) A person liable to pay provisional tax must calculate the amount payable for a tax year using 1 of the methods de- scribed in subsections (2) to (7).
Standard method: 5% uplift (2) Under the standard method, the amount of provisional tax payable for the tax year is 105% of the person’s residual in- come tax for the preceding tax year, determined under section RC 6.

Subsection (3) overrides this subsection.
Standard method: 10% uplift (3) Despite subsection (2), the amount of provisional tax payable for the tax year is 110% of the person’s residual income tax for the tax year before the preceding tax year if— (a) they are required to provide a return of income for the preceding tax year; and the return is not due on or before the date on which the ﬁrst payment of provisional tax for the tax year is required through the application of section 37 of the Tax Administration Act 1994, or an extension granted under that section; and they have not provided the return on or before that date; and the date is not the date of instalment F for the corres- ponding income year.
(b) (c) (d) 2534 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 5 (4) (5) Relationships and modiﬁcation of standard method Subsections (5) to (7) override subsection (3).

Sections RZ 3 (Standard method: 2010–11 to 2012–13 income years) and RZ 5D (Standard method or GST method: transition for Maori authorities) modify subsections (2) and (3).

Estimation method The person may estimate their provisional tax liability for the tax year under section RC 7.
GST ratio method (6) A person who is eligible under section RC 16 and not excluded by section RC 17 may choose to use a goods and services tax (GST) ratio under section RC 8 to determine their provisional tax liability for the tax year.
(7) Commissioner’s determination If the Commissioner determines a person’s provisional tax li- ability under section 119 of the Tax Administration Act 1994, the amount or liability is that last determined by the Commis- sioner and notiﬁed to the person at least 30 days before the instalment date.

The 30-day requirement does not apply in a case to which section 119(1)(d) of that Act applies (which re- lates to an estimate of residual income tax that is not fair and reasonable).
Life insurance business (8) A person who carries on a business of providing life insurance and who is liable for income tax under the life insurance rules, must at the time they determine their provisional tax liability provide the Commissioner with details of the calculation of that liability.

In particular, they must detail the extent to which the amount of provisional tax relates to the policyholder base.
Deﬁned in this Act: amount, business, Commissioner, corresponding income year, GST ratio, income tax, instalment date, life insurance, life insurance rules, notify, pay, policyholder base, provisional tax, residual income tax, return of income, tax year Compare: 2004 No 35 s MB 4 Section RC 5(4): amended (with effect on 1 October 2010), on 21 December 2010, by section 121 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section RC 5(4): amended, on 1 October 2010, by section 25 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

2535 Part R s RC 6 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RC 5(4): amended, on 1 October 2008, by section 39 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
RC 6 Standard method (1) (2) (3) (4) When this section applies This section applies to a person liable to pay provisional tax for the purposes of section RC 5(2) and (3) and the calculation of the amount of provisional tax payable for a tax year under the standard method.
Assessment for preceding tax year The person’s residual income tax for a tax year is based on their assessment for the preceding tax year unless the Com- missioner has sent out a notice of assessment for the tax year at least 30 days before the relevant instalment date, in which case the amount of residual income tax is based on the Com- missioner’s assessment for the preceding tax year.
Commissioner’s assessment for preceding tax year The person’s residual income tax is based on the Commis- sioner’s assessment for the preceding tax year, whenever the assessment is made, if— (a) they are required under sections 33 and 37 of the Tax Administration Act 1994 to provide a return of income for the preceding tax year but have failed to do so by the relevant instalment date; or they are not required under sections 33 and 37 of that Act to provide a return by the relevant instalment date, and subsections (2) and (4) do not apply.
(b) Residual income tax for preceding tax year The amount of provisional tax payable for a tax year is the amount of the person’s residual income tax for the preceding tax year if— (a) they are not required to provide a return of income for the preceding tax year; or their residual income tax for the tax year before the pre- ceding tax year was $2,500 or less, and they were not required to provide, and have not provided, a return of income for the tax year by the date of instalment F for the corresponding income year.
(b) 2536 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 7 (5) Later increased assessment If the Commissioner’s assessment of a person’s income tax li- ability occurs after the payment date for an instalment of pro- visional tax and would result in an increase in the person’s residual income tax for the preceding tax year, the residual in- come tax is treated for the purposes of the provisional tax rules as if it had not been increased.
Transitional years and consolidated groups (6) A person’s residual income tax in a transitional year is calcu- lated under section RC 20.

For consolidated groups, the cal- culation is made under section RC 29.
Deﬁned in this Act: amount, assessment, Commissioner, consolidated group, corresponding income year, income tax liability, instalment date, notice, pay, provisional tax, provisional tax rules, residual income tax, return of income, tax year, transitional year Compare: 2004 No 35 s MB 5 RC 7 Estimation method (1) When this section applies This section applies to a person who is liable to pay provisional tax under section RC 5(5) and to the calculation of the amount of their provisional tax payable for a tax year under the esti- mation method.
Fair and reasonable estimate (2) On or before an instalment date, the person may make a fair and reasonable estimate of their residual income tax for the tax year by informing the Commissioner of the estimate.

The amount of provisional tax payable for a tax year is the amount of the estimated residual income tax.

(3) Revising estimates The person may choose to revise an estimate made under sub- section (2) before an instalment date.
The amount last esti- mated is the amount taken into account under section RC 5(5).

Reasonable care in making and maintaining assessment (4) A person who makes an estimate under subsection (2) must take reasonable care in making it, and must revise the estimate for the tax year if, at some time in the tax year, the amount estimated is no longer fair and reasonable.
2537 Part R s RC 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) (6) (7) Estimation higher than provisional tax payable If a person’s estimate is more than the provisional tax that is payable for the tax year, they are treated as having taken reasonable care in making the estimate.
Changing calculation method from GST ratio If, under section RC 18(5), a person changes the way they determine the amount of provisional tax after the date of an instalment, they must estimate their residual income tax for their corresponding income year, and must pay provisional tax on whichever of the following instalment dates for the income year occur after 30 days from their last ratio instalment date: C and F for changes to a 6-monthly GST taxable period: (a) B, D, and F for other changes.
(b) Disaster relief [Repealed] [Repealed] Deﬁned in this Act: amount, Commissioner, corresponding income year, GST ratio, instalment date, pay, provisional tax, ratio instalment date, residual in- come tax, tax year Compare: 2004 No 35 s MB 6 Section RC 7(6): substituted, on 1 April 2008, by section 527 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 7(7) heading: repealed, on 6 October 2009, pursuant to section 499(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 7(7): repealed, on 6 October 2009, by section 499(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 7 list of deﬁned terms qualifying event: repealed, on 6 October 2009, by section 499(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 7 list of deﬁned terms self-assessed adverse event: repealed, on 6 October 2009, by section 499(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RC 8 GST ratio method Using GST ratio (1) A person liable to pay provisional tax who meets the require- ments of section RC 16 and is not excluded by section RC 17 may choose to use a GST ratio to determine the amount of pro- visional tax payable for a tax year.
2538 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 8 (2) (3) Meaning of GST ratio The person’s GST ratio is the percentage ﬁgure that is ob- tained by dividing their residual income tax for the preced- ing tax year by their total taxable supplies for the correspond- ing income year.

The amount of residual income tax and the amount of total taxable supplies are called base amounts for the purposes of this section.
When amounts based on tax year before preceding tax year If a base amount for the preceding tax year or corresponding income year is not known, the GST ratio is the percentage based on the assessment for the tax year and corresponding income year that are just before the preceding tax year and corresponding income year.
When no assessment for tax year before preceding tax year (3B) Subsection (3) does not apply and the GST ratio is the percent- age based on the assessments of the base amounts for the year that is 2 years before the preceding tax year if— (a) for the year before the preceding tax year— (i) (ii) an assessment of a base amount has not been made and the absence of an assessment arises be- cause of an extension of time for ﬁling a return for the year, or a period in the year: an assessment of a base amount is the subject of a dispute or challenge under the Tax Administra- tion Act 1994: the year is a transitional year; and (iii) for the year that is 2 years before the preceding tax year— (i) (ii) the base amounts have been assessed; and the circumstances in paragraph (a)(ii) and (iii) do not exist.
(b) (4) Commissioner’s calculation The Commissioner must calculate a person’s GST ratio, in- forming them by— (a) including the percentage ﬁgure on the person’s preprinted GST return form; or advising them in writing or by telephone; or some other means.
(b) (c) 2539 Part R s RC 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) Adjustment to GST ratio The Commissioner must adjust a person’s GST ratio if a base amount is revised through, among other reasons,— (a) an assessment or an amended assessment of the per- son’s income tax return for the preceding tax year; or a change in the value of the total taxable supplies for the corresponding income year; or the disposal of an asset to which section RC 19 applies.
(b) (c) New GST ratio (6) When subsection (5) applies, the Commissioner must inform the person of the new GST ratio.

The new ratio applies in relation to the relevant instalment dates that occur 30 days after the date on which the person is informed.
(7) Transitional years If a person has paid instalments of provisional tax in a transi- tional year, for the tax year that follows the transitional year, for the purposes of this section and section RC 11, they must— ignore the transitional year when determining their re- (a) sidual income tax or total taxable supplies; and base their determination of residual income tax and total taxable supplies on the tax year preceding the transi- tional year.
(b) When no assessment for tax year before preceding tax year (7B) Subsection (7) does not apply and the GST ratio is the percent- age based on the assessments of the base amounts for the year that is 2 years before the transitional year if— (a) for the year before the transitional year— (i) (ii) an assessment of a base amount has not been made and the absence of an assessment arises be- cause of an extension of time for ﬁling a return for the year, or a period in the year: an assessment of a base amount is the subject of a dispute or challenge under the Tax Administra- tion Act 1994: the year is a transitional year; and (iii) for the year that is 2 years before the transitional year— the base amounts have been assessed; and (i) (b) 2540 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 9 (8) (9) (ii) the circumstances in paragraph (a)(ii) and (iii) do not exist.
Total taxable supplies In subsections (2), (5), and (7), and in sections RC 11, RC 19, and RC 31, total taxable supplies, for a person and a period, means the amount that is the total value of taxable supplies by the person for the period.

The amount includes the GST charged on the supplies.

Modiﬁcation Sections RZ 4 (GST ratio method: 2010–11 to 2013–14 in- come years) and RZ 5D (Standard method or GST method: transition for Maori authorities) modify this section.
Deﬁned in this Act: amount, assessment, base amount, Commissioner, corres- ponding income year, GST, GST ratio, income tax, instalment date, pay, pro- visional tax, residual income tax, return, tax year, taxable supply, total taxable supplies, transitional year Compare: 2004 No 35 s MB 7 Section RC 8(3B) heading: inserted, on 1 April 2008, by section 528(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 8(3B): inserted, on 1 April 2008, by section 528(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 8(7B) heading: inserted, on 1 April 2008, by section 528(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 8(7B): inserted, on 1 April 2008, by section 528(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 8(9): amended (with effect on 1 October 2010), on 21 December 2010, by section 122 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section RC 8(9): amended, on 1 October 2010, by section 26 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RC 8(9): amended, on 1 October 2008, by section 40 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Instalments of provisional tax RC 9 Provisional tax payable in instalments (1) Who this section applies to This section applies to a person who is liable to pay provisional tax.
2541 Part R s RC 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) General principle For a person liable to pay provisional tax using the standard and estimation methods, the amount of the provisional tax li- ability must be spread evenly over the applicable number of instalments, so that equal amounts are paid on each instalment date.

If the full amount is not divisible into exactly equal in- stalments, the ﬁnal instalment carries the difference.
Provisional tax payable in 3 instalments (3) A person pays provisional tax in 3 instalments on the interest instalment dates for the tax year in the months set out in sched- ule 3, part A, columns B, D, and F (Payment of provisional tax and terminal tax) for the person’s corresponding income year.

The amount of each instalment is calculated under sec- tion RC 10.

Subsection (4) overrides this subsection.
(4) Exclusions Subsection (3) does not apply— (a) to a person liable to pay provisional tax who— pays GST on a 6-monthly basis; or (i) uses a GST ratio to determine the amount of pro- (ii) visional tax payable, or who changes their calcu- lation method under section RC 18(5); or changes the cycle of their taxable periods under section 15C of the Goods and Services Tax Act 1985: (iii) (b) (c) (d) to a person with an initial provisional tax liability who— (i) (ii) pays GST on a 6-monthly basis; or pays GST on a monthly or 2-monthly basis, and starts a taxable activity within 30 days before the date of instalment B in their corresponding in- come year: to a person liable to pay provisional tax who has not provided a return of income for the preceding tax year, and whose residual income tax for the tax year before the preceding tax year was $2,500 or less: in a transitional year.
Provisional tax when GST paid on 6-monthly basis (5) A person liable to pay provisional tax who pays GST on a 6-monthly basis must pay provisional tax on the 2 interest in- 2542 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 9 stalment dates for the tax year in the months set out in sched- ule 3, part A, columns C and F for their corresponding income year.
This subsection applies to a person with an initial provi- sional tax liability other than 1 who pays GST on a 6-monthly basis and starts a taxable activity within 30 days before the date of instalment C. Provisional tax determined using GST ratio (6) A person liable to pay provisional tax who uses a GST ratio to determine the amount of provisional tax payable for a tax year, must pay provisional tax on the 6 ratio instalment dates in the months set out in schedule 3, part A, columns A to F for their corresponding income year.
The amount of each instalment is calculated under section RC 11.

Changing calculation method (7) A person who is unable or who decides not to use a GST ratio, changing their calculation method under section RC 18, must pay the provisional tax payable for the tax year on the relevant instalment dates under the replacement method.

The amount of each instalment is calculated under section RC 10.
Changing cycle of taxable periods (8) A person who changes the cycle of their taxable periods under section 15C of the Goods and Services Tax Act 1985 must pay provisional tax for the tax year on the instalment dates set out in section RC 27 after the change in taxable period takes effect.

The amount of each instalment is calculated under section RC 10.
Persons with initial provisional tax liability (9) A person with a new provisional tax liability who starts a tax- able activity in a tax year is liable to pay interest calculated under section 120KC of the Tax Administration Act 1994 as if they were liable to pay provisional tax for the tax year— (a) in 3 instalments under subsection (3) if they start a tax- able activity at some time in the period that starts at the beginning of the corresponding income year and ends 30 days before the date of instalment B: in 2 instalments— (i) in a case to which section RC 13 applies; or (b) 2543 Part R s RC 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) if they pay GST on a 6-monthly basis and start a taxable activity at some time in the period that starts at the beginning of the corresponding in- come year and ends 30 days before the date of instalment C: (c) in 1 instalment in a case to which section RC 14 applies.
Extension of time for return (10) A person who has not provided a return of income for a pre- ceding tax year and whose residual income tax for the tax year before the preceding tax year was $2,500 or less must pay pro- visional tax for the tax year on the instalment dates set out in section RC 13 or RC 14, as applicable.

(11) Transitional years In a transitional year, provisional tax is payable as set out in section RC 21 and schedule 3, part B.
The amount of each instalment is calculated under sections RC 22 to RC 24.

Voluntary payments (12) A person liable to pay provisional tax may pay an instalment under section RC 12 at any time.
Deﬁned in this Act: amount, corresponding income year, ﬁnal instalment, GST, GST ratio, initial provisional tax liability, instalment date, interest instalment date, pay, provisional tax, ratio instalment date, residual income tax, return of income, tax year, taxable activity, taxable period, transitional year Compare: 2004 No 35 s MB 8 Section RC 9(7): amended, on 1 April 2008, by section 529(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 9(9): amended, on 1 April 2008, by section 529(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 9(9)(b)(ii): substituted, on 1 April 2008, by section 529(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Table R1: Summary of instalment dates and calculation methods for provisional tax Variables Method Instal- ments Instal- ment dates Calcula- tion Interest, penalties RC 6 3: RC 9(3) B, D, F RC 10 120KE(1), (2) RC 7 3: RC 9(3) B, D, F RC 10 120KB Categories: ordinary Standard RC 5(2), (3) Estimation RC 5(5) 2544 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 9 Variables Method Instal- ments Instal- ment dates Calcula- tion Interest, penalties 1 month RC 8 6: RC 9(6) A to F RC 11 2 month RC 8 6: RC 9(6) A to F RC 11 120KE(3), 139C 120KE(3), 139C standard RC 6 2: RC 9(5) C and F RC 11 120KE(1) estimation RC 7 2: RC 9(5) C and F RC 11 120KB RC 6 or RC 7 RC 9(9), RC 13(3), RC 14(2) D and F, or F as required RC 10 (RC 13(4)), RC 10 (RC 14(3)) RC 20 RC 22 (RC 9(11)) RC 27 (RC 9(8)) RC 27, 15C, 15E (GST Act) B, D, F, or C, F as required B, D, F, or C, F as required RC 22– RC 24 RC 26, RC 27 120KC 120KC 120KD RC 18 RC 7(6), RC 9(7) B, D, F, or C, F as required RC 18 120KE(5) –(7) RC 12 120E Categories: ordinary GST ratio RC 5(6) GST 6-month RC 9(4) Categories: exceptional Persons with initial provisional tax liability Transitional years Changing taxable period, or starting and stopping GST registration Changing calculation method Voluntary payments Note: references in the last column are to sections of the Tax Administration Act 1994.
2545 Part R s RC 10 Income Tax Act 2007 Reprinted as at 29 May 2012 RC 10 Calculating amount of instalment under standard and estimation methods (1) When this section applies This section applies for the purposes of— (a) section RC 5(2), (3), and (5) (which relates to the cal- culation of a provisional tax liability); and section RC 9(3) and (5) (which relates to payment of instalments); and sections RC 13 and RC 14 (which relate to persons with an initial provisional tax liability and those with an ex- tension of time for providing a return); and sections RC 26 and RC 27 (which relate to changes in taxable periods).
(b) (c) (d) (2) Calculation The amount of an instalment of provisional tax is calculated using the formula— residual income tax × instalment number total instalments provisional tax.
(3) Deﬁnition of items in formula In the formula,— (a) residual income tax is a person’s residual income tax, as applicable— (i) for the preceding tax year, uplifted by 5% (modi- ﬁed as applicable by sections RZ 5 (Calculat- ing amounts under standard method: 2010–11 to 2012–13 income years) and RZ 5D (Standard method or GST method: transition for Maori au- thorities); or for the tax year before the preceding tax year, up- lifted by 10% (modiﬁed as applicable by sections RZ 5 and RZ 5D); or the amount estimated by them: (iii) instalment number is the number of the instalment for the tax year, whether ﬁrst, second, or third: total instalments is the total number of instalments for the tax year: (ii) (b) (c) 2546 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 11 (4) (d) provisional tax is the amount of a person’s provisional tax liabilities for the tax year to date.
Instalment amounts after change in balance date or taxable period If a change occurs to the balance date or cycle of a person’s taxable periods, the calculation of the amount of an instalment is made under this section, applying the updated ﬁgures to the items in the formula.
Deﬁned in this Act: amount, balance date, initial provisional tax liability, pay, provisional tax, residual income tax, return of income, tax year, taxable period Compare: 2004 No 35 s MB 9 Section RC 10(1)(b): amended, on 1 April 2008, by section 530 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 10(3)(a)(i): amended (with effect on 1 October 2010), on 21 De- cember 2010, by section 123(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section RC 10(3)(a)(i): amended, on 1 October 2010, by section 27(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RC 10(3)(a)(i): amended, on 1 October 2008, by section 41(a) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RC 10(3)(a)(ii): amended (with effect on 1 October 2010), on 21 De- cember 2010, by section 123(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section RC 10(3)(a)(ii): amended, on 1 October 2010, by section 27(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RC 10(3)(a)(ii): amended, on 1 October 2008, by section 41(b) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
RC 11 Calculating amount of instalment using GST ratio (1) (2) Calculation For a person who uses a GST ratio, the amount of provisional tax payable on an instalment date for a tax year is calculated using the formula— GST ratio for tax year × total taxable supplies.

Deﬁnition of item in formula In the formula, total taxable supplies is the amount of the per- son’s total taxable supplies in the taxable period that matches the instalment period.
2547 Part R s RC 12 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) Taxable supplies when person pays on monthly basis For the purposes of subsection (1), a person who pays GST on a 1-month cycle under section 15 of the Goods and Services Tax Act 1985 must apply the GST ratio to the sum of their taxable supplies in the current taxable period and the preced- ing taxable period, that is, the taxable supplies in the 2-month period matching the instalment period.
Modiﬁcation Sections RZ 4 (GST ratio method: 2010–11 to 2013–14 in- come years) and RZ 5D (Standard method or GST method: transition for Maori authorities) modify this section.
Deﬁned in this Act: amount, GST, GST ratio, instalment date, pay, provisional tax, tax year, taxable period, taxable supply, total taxable supplies Compare: 2004 No 35 s MB 10 Section RC 11(4): amended (with effect on 1 October 2010), on 21 December 2010, by section 124 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section RC 11(4): amended, on 1 October 2010, by section 28 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RC 11(4): amended, on 1 October 2008, by section 42 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
RC 12 Voluntary payments A person who is liable to pay provisional tax may at any time make a voluntary payment of an amount of provisional tax that— (a) relates to their income tax liability for a tax year in which they are not liable for provisional tax; or is more than the provisional tax payable by them for the tax year; or is more than the income tax payable by them for the tax year.
(b) (c) Deﬁned in this Act: amount, income tax, income tax liability, pay, provisional tax, tax year Compare: 2004 No 35 s MB 12 RC 13 Paying 2 instalments for tax year Who this section applies to This section applies for a tax year to— (1) 2548 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 14 (a) (b) a person with an initial provisional tax liability whose ﬁrst business day occurs in the period that starts 30 days before the date of instalment B and ends 30 days before the date of instalment D; or a person liable to pay provisional tax whose return of income for the preceding tax year is provided in the period that starts on the date of instalment B and ends on the date of instalment D if— (i) they were required to provide a return for the pre- ceding tax year but, under section 37 of the Tax Administration Act 1994 or an extension under that section, are not required to provide the re- turn by the date of instalment B; and their residual income tax for the tax year before the preceding tax year was $2,500 or less.
(ii) Exclusion (2) Despite subsection (1), this section does not apply to a person liable to pay provisional tax who pays GST on a 6-monthly basis.

(3) (4) When instalments are payable For the purposes of section RC 9(9)(b), the instalments are payable on the date of instalments D and F for the person’s corresponding income year.

Formula for amount of instalment The amount of each instalment is calculated under section RC 10.
Deﬁned in this Act: amount, corresponding income year, ﬁrst business day, GST, initial provisional tax liability, pay, provisional tax, residual income tax, return of income, tax year Compare: 2004 No 35 s MB 13 RC 14 Paying 1 instalment for tax year (1) Who this section applies to This section applies for a tax year to— (a) a person with an initial provisional tax liability whose ﬁrst business day occurs in the period that starts 30 days before the date of instalment D and ends at the end of the corresponding income year: 2549 Part R s RC 15 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) a person liable to pay provisional tax whose return of income for the preceding tax year is not provided on or before the date of instalment D if— (i) they were required to provide a return for the pre- ceding tax year but, under section 37 of the Tax Administration Act 1994 or an extension under that section, are not required to provide the re- turn by the date of instalment D; and their residual income tax for the tax year before the preceding tax year was $2,500 or less: (ii) a person who pays GST on a 6-monthly basis if— (i) their ﬁrst business day occurs in the period that starts 30 days before the date of instalment C and ends at the end of the corresponding income year; or they meet the requirements of paragraph (b)(i) and (ii) as if the reference to instalment D in para- graph (b)(i) were a reference to instalment C. (ii) (2) (3) When instalment payable For the purposes of section RC 9(9)(c), the instalment is payable on the date of instalment F for the person’s corres- ponding income year.
Amount of instalment The amount of the instalment is calculated under section RC 10.
Deﬁned in this Act: amount, corresponding income year, ﬁrst business day, GST, initial provisional tax liability, pay, provisional tax, residual income tax, return of income, tax year Compare: 2004 No 35 s MB 14 Requirements for using GST ratio RC 15 Choosing to use GST ratio A person who meets the requirements of section RC 16(2) and (3) for a tax year may choose to use a GST ratio for the corres- ponding income year if they inform the Commissioner of their election before the start of the income year.
Deﬁned in this Act: Commissioner, corresponding income year, GST ratio, tax year Compare: 2004 No 35 s MB 16 2550 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 16 RC 16 Who may use GST ratio?

General eligibility (1) A person liable to pay provisional tax may choose to use a GST ratio to determine under section RC 5(6) the amount of provisional tax payable for a tax year only if they meet all the requirements of subsections (2) and (3) in relation to the same entity.
(2) Requirements for preceding tax year For the purposes of determining their eligibility for a tax year, the person must meet the following requirements in the pre- ceding tax year and corresponding income year: (a) their residual income tax, as calculated, was more than $2,500 but no more than $150,000; and they were a registered person for the whole income year, and provided a return under the Goods and Services Tax Act 1985 for an entity whose taxable activity did not begin operations in that tax year; and the ratio of their residual income tax to total taxable sup- plies, as calculated under section RC 11 and expressed as a percentage, is between zero and 100%.
(b) (c) (3) Requirement for current year For the tax year in which the person uses a GST ratio, they must be liable to ﬁle a return under the Goods and Services Tax Act 1985 for a 2-month or a 1-month period under section 15(1)(b) and (c) of that Act.

When election applies (4) A person’s election under section RC 15 to use a GST ratio applies for the tax year for which the election is made and in later tax years, unless the person changes their calculation method under section RC 18.
(5) References to preceding tax year In this section, a reference to a preceding tax year includes a reference to a tax year earlier than the preceding tax year if that earlier tax year is used for the purposes of calculating a GST ratio.
Deﬁned in this Act: amount, GST ratio, pay, provisional tax, registered person, residual income tax, tax year, taxable activity, total taxable supplies Compare: 2004 No 35 s MB 15(1)–(4), (11) 2551 Part R s RC 17 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RC 16(2): amended, on 1 April 2008, by section 531(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 16(2)(b): amended, on 1 April 2008, by section 531(2) of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 16(5): amended, on 1 April 2008, by section 531(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RC 17 When GST ratio must not be used Requirement to discontinue use of GST ratio (1) Despite section RC 16, a person must stop using a GST ratio for a tax year and must apply section RC 18(4) or (5) if— (a) their GST registration ends under section 52 of the Goods and Services Tax Act 1985 in the tax year; or they no longer qualify under section RC 16(2) as a result of an amended assessment of their income tax liability or their GST liability for the preceding tax year; or they no longer qualify under section RC 16(3) as a result of a change in their taxable period.
(b) (c) No GST return (2) A person must not use, or must stop using, a GST ratio for a tax year if they— (a) are liable to provide a return under the Goods and Services Tax Act 1985 for a period in their correspond- ing income year; and do not ﬁle the return within 60 days after the due date for ﬁling the return.
(b) Instalments following default (3) A person who is required by subsection (2) to stop using a GST ratio must pay the provisional tax instalments required under section RC 18 for an instalment period beginning on or after the due date for ﬁling the return referred to in subsection (2) that is not the subject of notiﬁcation under subsection (4).
Further use of GST ratio (4) Despite subsections (2) and (3), a person may use a GST ratio for an instalment period referred to in subsection (3) if— (a) they apply in writing or by telephone to the Commis- sioner; and the Commissioner considers— (b) 2552 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 18 (i) (ii) (iii) the failure to ﬁle the return is caused by an event or circumstance beyond the person’s control; and the event or circumstance provides reasonable justiﬁcation or excuse for the failure; and the person remedied the failure as soon as prac- ticable; and (5) (c) the Commissioner notiﬁes the person that they may use the GST ratio for the instalment period.
Standard required For the purposes of subsection (4)(b), the Commissioner must use the same approach that would be used to justify the remis- sion of a penalty under section 183A of the Tax Administration Act 1994.
Later default (6) Notiﬁcation under subsection (4) does not apply to an instal- ment period if— (a) the person fails to ﬁle a return due after the date of the notice unless the failure is anticipated and referred to in the notice; and the instalment period begins on or after the due date of the return described in paragraph (a).
(b) Deﬁned in this Act: assessment, Commissioner, corresponding income year, GST ratio, income tax liability, notify, pay, provisional tax, tax year, taxable period Compare: 2004 No 35 s MB 15(5)–(10) Section RC 17(4)(a): amended, on 1 April 2008, by section 532 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RC 18 Changing calculation method (1) When this section applies This section applies if, after having chosen to use a GST ratio for a tax year, a person liable to pay provisional tax either— (a) chooses another way to calculate the amount of provi- sional tax payable for the tax year; or is required under section RC 17(1) or (2) to stop using a GST ratio for the corresponding income year.
(b) (2) Informing Commissioner of decision to change The person must inform the Commissioner of their decision under subsection (1)(a), and may do this either in writing or by 2553 Part R s RC 18 Income Tax Act 2007 Reprinted as at 29 May 2012 telephone.

Subsection (4) or (5) then applies for the remaining instalments of provisional tax for the tax year.
Date on which use of GST ratio stopped For the purposes of subsection (1)(b), the date on which the person stops using a GST ratio is, as applicable,— the date their GST registration ends; or (a) the date of the amended assessment of their income tax (b) liability or GST liability for the preceding tax year; or the effective date of a change in taxable period; or the last day of the period in which a return is liable to be provided under the Goods and Services Tax Act 1985.
(c) (d) Changing method before date of instalment A If the person is unable or decides not to use a GST ratio before the date of instalment A, they may choose to determine the amount of provisional tax payable under section RC 5(2), (3) or (5).

The person is treated as never having chosen to use the GST ratio method and, for the purposes of section 120KE(5) of the Tax Administration Act 1994, as never having changed the way they determine an amount of provisional tax under this section.
Changing method after instalment date If the person is unable or decides not to use the GST ratio after an instalment date, they must determine the amount of provi- sional tax payable on instalment for the remainder of the in- come year under section RC 5(5) using the estimation method.

For this purpose, the person may provide the estimate in writ- ing or by telephone.
Date of application when method changed If the person changes their calculation method under subsec- tion (4) or (5), the date on which the change applies may be a future date agreed between the person and the Commissioner.
Other consequences of changing method For the purposes of this section,— (a) the number of instalments and the instalment dates re- maining for an income year depend on— (i) the requirements of the method chosen by the person when they stop using the GST ratio; and (3) (4) (5) (6) (7) 2554 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 19 (b) (c) (ii) the cycle of taxable periods chosen by the person, being either a monthly or 2-monthly basis: a person may change from using a GST ratio to a 6-monthly cycle of taxable periods only if— (i) the requirements of section 15C of the Goods and Services Tax Act 1985 are met; and their 6-month taxable period is aligned with their balance date under section 15B of the Goods and Services Tax Act 1985: (ii) section 120KE(5) to (7) of the Tax Administration Act 1994 applies in deciding whether use of money inter- est is payable in relation to instalments under the new method.
Deﬁned in this Act: amount, assessment, balance date, Commissioner, corres- ponding income year, GST ratio, income tax liability, income year, instalment date, pay, provisional tax, tax year, taxable period Compare: 2004 No 35 s MB 17 Section RC 18(2): amended, on 1 April 2008, by section 533(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 18(4): amended, on 1 April 2008, by section 533(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RC 19 Disposal of assets (1) When this section applies This section applies if, as part of the taxable activity of an entity referred to in section RC 16(2) and (3), a person who is liable to pay provisional tax, disposes of an asset— that is not revenue account property; and (a) the value of the supply of which is not less than the (b) greater of— (i) an amount equal to 5% of the total taxable sup- plies of the business for the previous 12 months; or $1,000.
(ii) (2) Adjustment to GST ratio for current and next income year The person may choose to take the disposal of the asset into account in adjusting their taxable supplies for the relevant tax- able period and income year, by subtracting the value, includ- ing GST, of the asset from— 2555 Part R s RC 20 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) the total taxable supplies for a taxable period for the pur- poses of the formula in section RC 11(1), in proportion to the output tax which is attributed under section 20(4) of that Act to that taxable period for the supply of the asset: the base amount of total taxable supplies for the corres- ponding income year under section RC 8(2), in propor- tion to the output tax which is attributed under section 20(4) of that Act to a taxable period in that income year for the supply of the asset.
Informing Commissioner For the purposes of subsection (2), the person must inform the Commissioner of both the disposal of the asset and the value of its supply, and may do this either in writing or by telephone.

Rounding percentages In the determination of the value of the supply of the asset under subsection (1)(b)(i), the amount must be rounded to a whole percentage number.
Deﬁned in this Act: amount, base amount, business, Commissioner, GST, GST ratio, income year, pay, provisional tax, revenue account property, taxable ac- tivity, taxable period, taxable supply, total taxable supplies Compare: 2004 No 35 s MB 18 Section RC 19(2): substituted, on 1 April 2008, by section 534 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
(3) (4) Transitional years RC 20 Calculating residual income tax in transitional years Calculation for transitional year This section applies for the purposes of section RC 5(2) and (3) and the calculation of a person’s residual income tax for a tax year if— (a) (b) the preceding tax year is a transitional year: the tax year before the preceding tax year is a transi- tional year.
Amount increased or decreased The amount of residual income tax for the transitional year must be increased or decreased by the amount calculated under (1) (2) 2556 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 21 (3) (4) subsection (3) to reﬂect the amount that would apply in a 12-month period.

Formula The amount of residual income tax is calculated using the for- mula— residual income tax × days in current tax year days in transitional year.
Deﬁnition of items in formula In the formula,— (a) residual income tax is a person’s residual income tax, as applicable— (i) (ii) for the preceding tax year, uplifted by 5%; or for the tax year before the preceding tax year, uplifted by 10%; or the amount estimated by them: (iii) days in current tax year is the number of days in the current tax year: days in transitional year is the number of days in the person’s transitional year.
(b) (c) Deﬁned in this Act: amount, residual income tax, tax year, transitional year Compare: 2004 No 35 s MB 19 RC 21 Paying provisional tax in transitional years Total amount payable (1) A person liable to pay provisional tax in a transitional year must pay the sum of all instalments of provisional tax payable for the transitional year, both interim instalments under sub- section (2) and a ﬁnal instalment under subsection (3).
(2) When instalments payable The person must pay an instalment other than a ﬁnal instalment on— (a) the 28th day of the months set out in schedule 3, part B (Payment of provisional tax and terminal tax) unless paragraph (b) or (c) applies: 15 January, when the month set out in schedule 3, part B is December and the year is a transitional year: (b) 2557 Part R s RC 21 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) 7 May, when the month set out in schedule 3, part B is April and the year is a transitional year.
When ﬁnal instalment payable The person must pay the ﬁnal instalment on— (a) the 28th day of the month following the ﬁnal month in the transitional year; or the 15th day of January, when November is the ﬁnal month; or 7 May, when March is the ﬁnal month and the year is a transitional year.
Modiﬁcations to instalment dates For the purposes of subsection (2), provisional tax is not payable on— (a) the date of instalment B, if section RC 13 would have applied if the year were not a transitional year; or the dates of instalments B and D, if section RC 14(1)(a) and (b) would have applied if the year were not a tran- sitional year; or the dates of instalments B, D, and F, if the person li- able to pay provisional tax is a person with an initial provisional tax liability whose ﬁrst business day occurs within 30 days of the date of instalment F; or the date of instalment C, if section RC 14(1)(c) would have applied if the year were not a transitional year; or the dates of instalments C and F, if the person liable to pay provisional tax is a person with an initial provisional tax liability who pays GST on a 6-monthly basis whose ﬁrst business day occurs after the day that is 30 days before the date of instalment F. (b) (c) (b) (c) (d) (e) Counting months in transitional years In this section, and in sections RC 22 to RC 25, and in sched- ule 3, part B, the number of months in a transitional year is determined as follows: (a) the ﬁrst month in a person’s transitional year is the ﬁrst whole month in the transitional year: the ﬁnal month in a person’s transitional year is the month in which their new balance date under section 39 of the Tax Administration Act 1994 occurs: (b) (3) (4) (5) 2558 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 22 (c) each month falling between the ﬁrst and ﬁnal months must be included in determining the length of the tran- sitional year.
Deﬁned in this Act: balance date, ﬁnal instalment, ﬁrst business day, GST, initial provisional tax liability, pay, provisional tax, transitional year, year Compare: 2004 No 35 s MB 20 Section RC 21(2)(a): substituted, on 1 April 2008, by section 535(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 21(2)(b): substituted, on 1 April 2008, by section 535(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RC 21(2)(c): added, on 1 April 2008, by section 535(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 21(3)(b): amended, on 1 April 2008, by section 535(2) of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RC 21(3)(c): added, on 1 April 2008, by section 535(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RC 22 Calculating instalments in transitional years: standard method (1) (2) (3) When this section applies This section applies to a person liable to pay provisional tax using the standard method in relation to instalments of provi- sional tax payable in a transitional year under section RC 21.
Instalment other than ﬁnal instalment For an instalment date other than the date of the ﬁnal instal- ment, the person must pay an amount calculated using the for- mula— person’s provisional tax × instalments payable total instalments tax previously payable.
Deﬁnition of items in formula In the formula in subsection (2),— (a) person’s provisional tax is the person’s provisional tax liability under section RC 5(2) or (3): instalments payable is the number of instalments that the person has in the transitional year on or before the instalment date: total instalments is whichever of the following applies: (b) (c) 2559 Part R s RC 23 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) 3, for a person who pays on instalment dates B, D, and F; or 2, for a person who pays on instalment dates C and F: (d) tax previously payable is the amount for the transi- tional year of the person’s provisional tax payable be- fore the instalment date.
(4) Final instalment For the ﬁnal instalment, the person must pay an amount calcu- lated using the formula— person’s provisional tax × transitional year days preceding year days tax previously payable.
(5) Deﬁnition of items in formula In the formula in subsection (4),— (a) (b) (c) (d) person’s provisional tax is the person’s provisional tax liability under section RC 5(2) or (3): transitional year days is the number of days in the person’s transitional year: preceding year days is the number of days in the per- son’s preceding tax year: tax previously payable is the amount of provisional tax for a tax year calculated on the basis of the person’s transitional year that is payable before the instalment date.
Deﬁned in this Act: amount, instalment date, ﬁnal instalment, pay, provisional tax, tax year, transitional year Compare: 2004 No 35 s MB 21 RC 23 Calculating instalments in transitional years: estimation method (1) When this section applies This section applies to a person liable to pay provisional tax using the estimation method in relation to instalments of pro- visional tax payable in a transitional year under section RC 21.
2560 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 23 (2) (3) Instalment other than ﬁnal instalment For an instalment date other than the date of the ﬁnal instal- ment, the person must pay an amount calculated using the for- mula— tax estimate × instalments payable transitional months tax previously payable.
Deﬁnition of items in formula In the formula,— (a) (b) (c) (d) tax estimate is the person’s provisional tax liability last estimated by the person under section RC 5(5): instalments payable is either— (i) 4 multiplied by the number of instalments in the person’s transitional year payable on or before the instalment date, for a person who pays on the equivalent of instalment dates B, D, and F; or 6 multiplied by the number of instalments in the person’s transitional year payable on or before the instalment date, for a person who pays on the equivalent of instalment dates C and F: (ii) transitional months is the number of months in the person’s transitional year: tax previously payable is the amount of provisional tax for a tax year calculated on the basis of the person’s transitional year that is payable before the instalment date.
(4) Final instalment For the ﬁnal instalment, the person must pay the amount calcu- lated under section RC 5(5) less the amount of any instalment previously payable.
Deﬁned in this Act: amount, ﬁnal instalment, instalment date, pay, provisional tax, tax year, transitional year Compare: 2004 No 35 s MB 22 2561 Part R s RC 24 Income Tax Act 2007 Reprinted as at 29 May 2012 RC 24 Calculating instalments in transitional years: GST ratio method (1) (2) What this section applies to This section applies to a person liable to pay provisional tax using a GST ratio in relation to instalments of provisional tax payable in a transitional year.
Adjustment if required For a period or part period before the start of the new income year, the person must apply the GST ratio under section RC 11 on whichever dates of instalments A to F for their correspond- ing income year occur in the transitional year.
Deﬁned in this Act: corresponding income year, GST ratio, income year, pay, provisional tax, transitional year Compare: 2004 No 35 s MB 23 RC 25 Consequences of change in balance date (1) (2) (3) (4) Continuing frequency This section applies to a person liable to pay provisional tax who changes their balance date.
Continuing to use instalment dates to new balance date The person must continue to use the instalment dates that ap- plied before the change in balance date was approved until the new balance date is reached.

How amounts determined Sections RC 20 to RC 24 and schedule 3, part B (Payment of provisional tax and terminal tax) apply for the person’s tran- sitional year to determine the amount and payment date of the instalments.
Estimation method In a transitional year, if the person uses the estimation method, they must,— (a) before the date on which the Commissioner notiﬁes a change in balance date, estimate the residual income tax as if no change in balance date is or will be approved; and after the date on which the Commissioner notiﬁes a change in balance date, re-estimate the residual income tax.
(b) 2562 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 26 (5) (6) (7) GST ratio method Subsection (6) applies if the person uses a GST ratio to deter- mine the provisional tax payable for a tax year, and in changing their balance date, moves from— (a) a set of instalment dates in even-numbered months to a set of instalment dates in odd-numbered months; or a set of instalment dates in odd-numbered months to a set of instalment dates in even-numbered months.
(b) Adjustment to liability The person must— (a) (b) adjust their provisional tax liability for the part-period of 1 month before the start of the new income year; and pay the instalment of provisional tax for the part-period as their ﬁnal taxable period— (i) 28 days after the end of the part period, unless subparagraph (ii) or (iii) applies; or by 15 January if the part-period falls in Novem- ber; or by 7 May if the part period falls in March.
(ii) (iii) Aligning taxable periods For a registered person, if a change in balance date means that their taxable period is not aligned with the balance date, an adjustment must be made to their taxable period under section 15B(3) or 15C of the Goods and Services Tax Act 1985.
Deﬁned in this Act: amount, balance date, Commissioner, GST ratio, income year, instalment date, notify, pay, provisional tax, registered person, residual income tax, tax year, taxable period, transitional year Compare: 2004 No 35 s MB 24 Section RC 25(6): substituted, on 1 April 2008, by section 536 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
When persons start or stop paying GST, or change taxable periods RC 26 Registering for GST or cancelling registration (1) When this section applies This section applies if a person who uses the standard or es- timation method to determine the amount of provisional tax payable for a tax year— 2563 Part R s RC 26 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) applies to the Commissioner to become a registered per- son under section 51 of the Goods and Services Tax Act 1985; or is treated as registered under section 51B of that Act; or asks the Commissioner to cancel their GST registration, or has their GST registration cancelled under section 52 of that Act.
Starting or ending GST registration: monthly or 2-monthly basis For a person liable to pay provisional tax who becomes regis- tered for GST paying on a monthly or 2-monthly basis, or who cancels or has their GST registration cancelled having paid on that basis, the instalments of provisional tax payable by them for the tax year are unaffected.
(2) Starting GST registration: 6-monthly basis (3) A person liable to pay provisional tax who becomes registered for GST paying on a 6-monthly basis must pay their instal- ments of provisional tax on whichever dates of instalments C and F for their corresponding income year coincide with the cycle of their taxable periods after they become a registered person.
Ending GST registration: 6-monthly basis (4) A person liable to pay provisional tax who pays GST on a 6-monthly basis and cancels their GST registration or has their registration cancelled, must pay their instalments of provi- sional tax on whichever dates of instalments B, D, and F for their corresponding income year occur after 30 days from the date of cancellation.
(5) Date of cancellation For the purposes of subsection (4) and the provisional tax rules, the date of cancellation is the later of the date on which— the cancellation of GST registration is notiﬁed: (a) the person’s liability under section 52 of the Goods and (b) Services Tax Act 1985 stops.

2564 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 27 (6) Formula for amount of instalment The amount of each instalment is calculated under section RC 10.
Deﬁned in this Act: amount, Commissioner, corresponding income year, GST, pay, provisional tax, provisional tax rules, registered person, tax year, taxable period Compare: 2004 No 35 s MB 25 Section RC 26(5): substituted, on 1 April 2008, by section 537 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RC 27 Payment of provisional tax instalments when GST cycle changed (1) (2) (3) (4) When subsection (2) applies Subsection (2) applies in a tax year to a person liable to pay provisional tax who— (a) uses the standard or estimation method to determine the amount of provisional tax payable; and has been paying GST on a monthly or 2-monthly basis; and changes to a 6-monthly basis under section 15C(1) of the Goods and Services Tax Act 1985.
(b) (c) Changing to 6-monthly basis The person must pay their instalments of provisional tax on whichever dates of instalments C and F for their correspond- ing income year occur after the change in taxable period takes effect.
When subsection (4) applies Subsection (4) applies in a tax year to a person liable to pay provisional tax who— (a) uses the standard or estimation method to determine the amount of provisional tax payable; and has been paying GST on a 6-monthly basis; and changes to a monthly or 2-monthly basis under section 15C(2) or (3) of the Goods and Services Tax Act 1985.
(b) (c) Changing to monthly or 2-monthly basis The person must pay their instalments of provisional tax on whichever dates of instalments B, D, and F for the person’s corresponding income year occur after the change in taxable period takes effect.
2565 Part R s RC 28 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) (6) Interest instalment dates in new cycle If an instalment of provisional tax that falls on an instalment date in the new cycle is payable in relation to a period in the person’s original cycle that was, under that original cycle, an interest instalment date, it remains an interest instalment date in the new cycle.
However, if the instalment falls on an instal- ment date other than an interest instalment date, the change does not affect the nature of the instalment.

Formula for amount of instalment The amount of each instalment is calculated under section RC 10.
Deﬁned in this Act: amount, corresponding income year, GST, instalment date, interest instalment date, pay, provisional tax, tax year, taxable period Compare: 2004 No 35 s MB 27 Treatment of groups of companies and amalgamated companies RC 28 Provisional tax rules and consolidated groups Single company The provisional tax rules apply, modiﬁed as necessary, to a consolidated group of companies as if it were a single com- pany.
Joint and several liability Each company in a consolidated group in a tax year is jointly and severally liable for the amount of provisional tax payable by the consolidated group to be credited against the income tax liability of the group for the tax year.

The liability of a group company for income tax for the tax year is substituted by that joint and several liability to the extent to which the liability arises while the company is part of the consolidated group.
Relationship with section FM 4 Section FM 4(3) to (5) (Limiting joint and several liability of group companies) overrides this section.
Deﬁned in this Act: amount, company, consolidated group, income tax, income tax liability, pay, provisional tax, provisional tax rules, tax year Compare: 2004 No 35 s MB 29 (1) (2) (3) 2566 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 30 RC 29 Residual income tax of consolidated groups (1) (2) (3) When this section applies This section applies for the purposes of the provisional tax rules if a company is part of a consolidated group of companies in a tax year but was not part of the group for some or all of the preceding tax year.
Increased residual income tax The residual income tax of the consolidated group for the pre- ceding tax year is treated as increased by an amount equal to the residual income tax of the company for the preceding tax year.

If the company is part of the group for part of the current tax year, the amount of residual income tax is increased as a proportion on the basis of the part of the tax year during which the company is part of the group.
Instalments after company joins group If the company is part of a group for part of the tax year, this section applies only to instalments of provisional tax payable after the date on which the company becomes part of the group.
Deﬁned in this Act: amount, company, consolidated group, pay, provisional tax, provisional tax rules, residual income tax, tax year Compare: 2004 No 35 s MB 30 RC 30 Consolidated groups using estimation method (1) (2) (3) When subsection (2) applies Subsection (2) applies for the purposes of the provisional tax rules if a company is part of a consolidated group of companies for some or all of a tax year but is not part of the group for some or all of the following tax year.
Estimation before ﬁnal instalment date The company must estimate its residual income tax on or be- fore the date of instalment F for the following income year that corresponds to the tax year, and the company is treated as a person to which section RC 7 applies for the purposes of its estimate.
When company part of another consolidated group The consolidated group, in the case of a company that is part of another consolidated group, must make an estimate of re- sidual income tax on or before the date of instalment F for the 2567 Part R s RC 31 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) following income year that corresponds to the tax year, and the consolidated group is treated as a person to which section RC 7 applies for the purposes of its estimate.
When company no longer part of group If a company stops being part of the consolidated group in the following tax year, the company’s estimate applies only to instalments of provisional tax payable after the date on which it stopped being part of the group.
Deﬁned in this Act: company, consolidated group, corresponding income year, pay, provisional tax, provisional tax rules, residual income tax, tax year Compare: 2004 No 35 s MB 31 RC 31 Consolidated groups using GST ratio method Sections RC 8, RC 9(6), RC 11, and RC 15 to RC 19 apply to a consolidated group of companies with the following modiﬁ- cations: (a) if a consolidated group that is eligible to use, or is using, a GST ratio for a tax year is joined by a company, the following subparagraphs apply: (i) (ii) (iii) if the company joins at the start of the tax year and, as a result, the threshold in section RC 16(2)(a) is exceeded, the group is no longer eligible to use a GST ratio: if the company joins at the start of the tax year, and the group, allowing for the inclusion of the company, is eligible under section RC 16(1), the group may use a GST ratio, subject to the recal- culation of the ratio under paragraph (c): if the company joins at some time in the tax year, the group may continue to use a GST ratio for the tax year, as recalculated under paragraph (c), pro- vided the requirements for eligibility other than the threshold in section RC 16(2)(a) are met: (b) (c) if a consolidated group that does not determine provi- sional tax payable for a tax year using a GST ratio, is joined by a company that is using a GST ratio for the tax year, the group may not start using a GST ratio for this purpose for the tax year: for the purposes of paragraph (a),— 2568 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 32 (i) (ii) the group must recalculate the GST ratio apply- ing for a tax year to include the residual income tax of the company for the preceding tax year and the total taxable supplies of the company for the corresponding income year, applying section RC 8(3) if required; and the recalculated GST ratio applies to provisional tax payments made for the corresponding income year on or after the date on which the company joins the group: (d) sections RC 17(3) and RC 18(4) or (5), as applicable, apply
 to a company that leaves a consolidated group at some time in a tax year.
Deﬁned in this Act: company, consolidated group, corresponding income year, GST ratio, pay, provisional tax, residual income tax, tax year, total taxable sup- plies Compare: 2004 No 35 s MB 32 RC 32 Wholly-owned groups of companies (1) (2) (3) When this section applies This section applies for the purposes of the provisional tax rules and Part 7 of the Tax Administration Act 1994 in rela- tion to a company (company A) that is in a tax year part of a wholly-owned group of companies that includes another com- pany (company B).
Sections RM 13 to RM 17 (which relate to refunds) override this section.

Company A transferring overpayment to company B If, for a tax year, company A has paid an amount that is more than the provisional tax payable for the tax year, the company may transfer some or all of the overpayment to company B to the extent to which the amount of provisional tax paid by com- pany B is less than their residual income tax for the tax year.

Company A must notify the Commissioner under subsection (4).
When transfer made Company A may transfer an amount under subsection (2) on or after the later of— (a) the day on which company A overpays the provisional tax; or 2569 Part R s RC 33 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) the day on which the ﬁrst instalment of provisional tax for the tax year becomes payable by company B.
Notice (4) A notice under subsection (2) must— (a) (b) (c) name company B, and the amount to be transferred; and state the date on which the overpayment is treated as transferred to company B; and be given to the Commissioner within— (i) the time for providing a return of income for the tax year for company B; or an extension of time allowed by the Commis- sioner.
(ii) (5) When transfer made, and how transfer treated For the purposes of this section,— (a) (b) a transfer under subsection (2) is treated as made on the date stated in the notice; and provisional tax transferred by company A to company B is treated as provisional tax paid by company B and not by company A. Deﬁned in this Act: amount, Commissioner, company, notice, notify, pay, pro- visional tax, provisional tax rules, residual income tax, return of income, tax year, wholly-owned group of companies Compare: 2004 No 35 s MB 33 RC 33 Amalgamated companies: calculating residual income tax When this section applies This section applies for a tax year when an amalgamating com- pany ends its existence on an amalgamation.
Residual income tax for preceding tax year The residual income tax of the amalgamated company for the preceding tax year is the amount that would have been the re- sidual income tax of the amalgamated company for the pre- ceding tax year if the amalgamating company and the amalga- mated company had been 1 company.
(1) (2) 2570 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 34 (3) Exclusion Subsection (2) does not apply for the purposes of the provi- sional tax rules in relation to instalments of provisional tax payable before the amalgamation.
Deﬁned in this Act: amalgamated company, amalgamating company, amalgam- ation, amount, pay, provisional tax, provisional tax rules, residual income tax, tax year Compare: 2004 No 35 s MB 34 Attribution rule for income from personal services RC 34 Attribution rule for income from personal services (1) (2) (3) (4) When this section applies This section applies for the purposes of the provisional tax rules and Part 7 of the Tax Administration Act 1994 for pro- visional tax paid for income from personal services to which section GB 27 (Attribution rule for income from personal ser- vices) may apply.
The references in this section to working person and associated entity reﬂect the terminology used in section GB 27.

Associated entity transferring amount to working person If, in a tax year, the associated entity pays an amount of tax that is more than the provisional tax payable for the tax year, the entity may transfer some or all of the overpayment to the working person to the extent to which the amount of provi- sional tax paid by the person is less than their residual income tax for the tax year.
Working person transferring amount to associated entity If, in a tax year, the working person pays an amount of tax that is more than the provisional tax payable for the tax year, they may transfer some or all of the overpayment to the associated entity to the extent to which the amount of provisional tax paid by the entity is less than their residual income tax for the tax year.
When transfer made The associated entity and the working person may transfer an amount under subsection (2) or (3), as applicable, on or after the later of— 2571 Part R s RC 34 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) the day on which the overpayment of provisional tax is paid by the entity or person, as applicable: the day on which the instalment of provisional tax payable for the tax year becomes payable by— (i) (ii) the person, if the entity is making the transfer; or the entity, if the person is making the transfer.
Notice The Commissioner must be notiﬁed of a transfer under sub- section (2) or (3) in a notice that— (a) names the person to whom a transfer is made, and the amount to be transferred; and states the date on which the overpayment is treated as transferred to the associated entity or working person, as applicable; and is provided within the time for ﬁling a return of income for the tax year for the person to whom the transfer is made, or an extended time allowed by the Commis- sioner.
(b) (c) (b) When transfer made and how transfer treated For the purposes of this section,— (a) a transfer under subsection (2) or (3) is treated as made on the day stated in the notice; and provisional tax transferred by the associated entity to the working person for a tax year is treated as provisional tax paid by the working person and not by the associated entity; and provisional tax transferred by the working person to the associated entity is treated as provisional tax paid by the associated entity and not by the working person.
Deﬁned in this Act: amount, amount of tax, associated person, Commissioner, income, notice, notify, pay, provisional tax, provisional tax rules, residual in- come tax, return of income, tax year Compare: 2004 No 35 s MB 35 (c) Section RC 34(1) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 500(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

(5) (6) 2572 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 35 Section RC 34(2) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 500(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34(2): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 34(3) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 500(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 34(4) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 500(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 34(5) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 500(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34(5): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 34(6) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 500(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34(6): substituted (with effect on 1 April 2008), on 6 October 2009, by section 500(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RC 34 list of deﬁned terms amount of tax: inserted (with effect on 1 April 2008), on 6 October 2009, by section 500(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RC 34 list of deﬁned terms associated person: inserted (with effect on 1 April 2008), on 6 October 2009, by section 500(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Credits RC 35 Further income tax credited to provisional tax liability (1) When this section applies This section applies for the purposes of sections RC 9 to RC 11 if, under sections OB 65 to OB 69 (which relate to further income tax for ICA companies), a company applies an amount 2573 Part R s RC 36 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) of further income tax to pay an instalment of provisional tax for which the company becomes liable after the date of payment of the further income tax.
Amount treated as provisional tax The instalment is satisﬁed to the extent of the amount of further income tax.

The amount is treated as provisional tax paid on the date on which the instalment was payable.
Order The Commissioner must credit the amount of the further in- come tax in payment successively of— (a) the instalment of provisional tax that is ﬁrst payable after the date of payment of the further income tax; and to the extent of the amount of further income tax, to later instalments in the order in which they are payable.
Deﬁned in this Act: amount, Commissioner, company, further income tax, ICA company, pay, provisional tax Compare: 2004 No 35 s MB 37 (b) Disaster relief [Repealed] Heading: repealed, on 6 October 2009, pursuant to section 501 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RC 36 Persons affected by adverse events [Repealed] Section RC 36: repealed, on 6 October 2009, by section 501 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Early-payment discounts RC 37 Availability of early-payment discounts Sections RC 38 and RC 39 apply for an income year to a small- business person who is not liable to pay provisional tax for the income year and, for earlier income years,— (a) has never been liable to pay provisional tax and either— has never received an early-payment discount; or (i) has not derived assessable income from a busi- (ii) ness in a period of 4 income years starting after 2574 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 38 the latest income year for which they received an early-payment discount; or (b) has not derived assessable income from a business in a period of 4 income years starting after the latest income year for which they were liable to pay provisional tax.
Deﬁned in this Act: assessable income, business, early-payment discount, in- come year, pay, provisional tax, small-business person Compare: 2004 No 35 s MBB 2(1)(a), (d) RC 38 Crediting income tax with early-payment discount (1) (2) (3) When this section applies This section applies when a small-business person— (a) (b) (c) (d) pays income tax on or before their balance date for the income year; and during the period from the balance date for the income year to their terminal tax date for the income year, has a credit in their tax account with the Commissioner that is greater than or equal to the lesser of— (i) (ii) the total amount paid under paragraph (a): the amount that would be their terminal tax for the income year in the absence of this section; and ﬁles a return of income for the tax year corresponding to the income year; and applies for an early-payment discount on or before the last date for ﬁling a return of income under section 37(5) of the Tax Administration Act 1994.
Crediting early-payment discount The Commissioner must credit the tax account of the small-business person with an early-payment discount calcu- lated under subsection (3).

Amount of early-payment discount The amount of the early-payment discount is found by multi- plying the discount rate under subsection (4) by the lesser of— (a) (b) the total amount paid under subsection (1)(a): 105% of the small-business person’s residual income tax for the income year.
2575 Part R s RC 39 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Discount rate The discount rate is— (a) (b) 6.7%, if no rate is set under paragraph (b): the rate set by the Governor-General by Order in Coun- cil.
Deﬁned in this Act: amount, balance date, Commissioner, corresponding in- come year, early-payment discount, income, income tax, income year, pay, re- sidual income tax, return of income, small-business person, tax account with the Commissioner, tax year, terminal tax Compare: 2004 No 35 s MBB 2(1)(b), (c), (2)–(4) RC 39 Credit treated as payment of income tax A credit of an early-payment discount under section RC 38 is treated as a payment made by a small-business person on the day after the last day of the income year referred to in section RC 38 as income tax for the income year.
Deﬁned in this Act: early-payment discount, income tax, income year, pay, small-business person Compare: 2004 No 35 s MBB 3 RC 40 Some deﬁnitions In this subpart,— early-payment discount means a discount of income tax under sections RC 38 and RC 39 small-business person means a person who— (a) conducts a business on their own account, acting alone or as a partner in a partnership; and does not use a company or a trust in the conduct of the business; and derives income that is mainly from the business, and does not consist of interest, dividends, royalties, rent, or beneﬁciary income.
(b) (c) Deﬁned in this Act: beneﬁciary income, business, company, dividend, income, income tax, interest, royalty Compare: 2004 No 35 s MBB 4 2576 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RC 40 Subpart RD—Employment-related taxes Contents Introductory provision RD 1 What this subpart does PAYE rules and PAYE income payments Introductory provisions RD 2 RD 3 RD 4 PAYE rules and their application PAYE income payments Payment of amounts of tax to Commissioner Types of PAYE income payments Salary or wages RD 5 RD 6 Certain beneﬁts and payments RD 7 Extra pay RD 8 Schedular payments Calculating amounts of tax RD 9 Maximum amount RD 10 Amounts of tax for PAYE income payments RD 11 Reduction in certain circumstances Adjustments for certain PAYE income payments RD 12 Multiple payments of salary or wages RD 13 Advance payments of salary or wages RD 13B Adjustments for payroll donations RD 14 Changes to tax rates for salary or wages RD 15 Payments of salary or wages in pay periods RD 16 Payments to private domestic workers RD 17 Payment of extra pay with other PAYE income payments RD 18 Schedular payments without notiﬁcation RD 19 Schedular payments to non-resident entertainers RD 20 Schedular payments to subcontractors Paying amounts of tax RD 21 When amounts of tax not withheld or payment insufﬁcient RD 22 Returns for amounts of tax paid to Commissioner RD 23 Bonds given by employers of certain non-resident employees RD 24 Exemption certiﬁcates for non-resident contractors Page 2579 2580 2581 2583 2584 2587 2588 2589 2591 2591 2593 2594 2595 2595 2596 2597 2598 2599 2601 2602 2602 2603 2603 2607 2609 2577 Income Tax Act 2007 Reprinted as at 29 May 2012 Fringe beneﬁt tax (FBT) rules and fringe beneﬁts Introductory provisions RD 25 FBT rules and their application RD 26 Liability for FBT Value of fringe beneﬁts RD 27 Determining fringe beneﬁt values RD 28 Private use of motor vehicle: calculation methods RD 29 Private use of motor vehicle: formulas RD 30 Private use of motor vehicle: 24-hour period RD 31
 Motor vehicle test period RD 32 Replacement motor vehicles RD 33 Subsidised transport RD 34 Employment-related loans: value using prescribed interest rates 2609 2610 2611 2611 2613 2614 2615 2617 2617 2618 RD 35 Employment-related loans: value using market interest 2619 rates RD 36 Repayment of employment-related loans RD 37 Contributions to superannuation schemes RD 38 Contributions to funds, trusts, and insurance premiums RD 39 Beneﬁts provided by charitable organisations RD 40 Goods RD 41 Services RD 42 Goods at staff discount RD 43 Goods on special with staff discount RD 44 Goods sold by group companies RD 45 Unclassiﬁed beneﬁts RD 46 Adjustments for unclassiﬁed beneﬁts on amalgamation Attributing fringe beneﬁts to employees RD 47 Attribution of certain fringe beneﬁts RD 48 When attributed beneﬁts provided to more than 1 employee RD 49 Application of thresholds to attributed beneﬁts RD 50 Employer’s liability for attributed beneﬁts RD 51 Calculation of all-inclusive pay RD 52 Calculation for certain employees when information lacking RD 53 Pooling non-attributed beneﬁts RD 54 Value of and payments towards fringe beneﬁts Taxable value of fringe beneﬁts 2620 2621 2622 2622 2624 2625 2626 2627 2627 2628 2629 2631 2632 2633 2633 2635 2637 2638 2639 2578 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 1 RD 55 Private use of motor vehicle: taxable value in cases of 2640 part ownership RD 56 Private use of motor vehicle: when schedular value not 2640 used RD 57 Private use of motor vehicle: when schedular value used 2642 Options for payment of FBT RD 58 Single rate option RD 59 Alternate rate option RD 60 Close company option RD 61 Small business option RD 62 Changes in payment periods RD 63 When employer stops employing staff Employer’s superannuation contribution tax (ESCT) rules and employer’s superannuation contributions Introductory provisions RD 64 ESCT rules and their application RD 65 Employer’s superannuation cash contributions RD 66 Complying fund
 rules [Repealed] Calculating amounts of tax 2643 2643 2644 2646 2648 2649 2650 2650 2654 RD 67 Calculating amounts of tax for employer’s superannuation 2654 cash contributions RD 68 Choosing to have amount treated as salary or wages RD 69 Choosing different rates for employer’s superannuation cash contributions [Repealed] RD 70 Calculating amounts of tax on failure to withhold RD 71 Amounts of tax treated as paid to and received by 2654 2655 2655 2656 superannuation funds Tax on certain withdrawals from superannuation funds [Repealed] RD 72 Recovery of tax paid by superannuation funds [Repealed] 2657 Introductory provision RD 1 What this subpart does This subpart establishes and measures an employer’s liability under— (a) the PAYE rules by— 2579 Part R s RD 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) (iii) (iv) listing the types of payments to which the rules apply: calculating the amounts of tax that must be with- held and paid to the Commissioner under the rules: providing for certain adjustments to the amounts: providing some rules related to the payment of the amounts: the FBT rules by— (i) (ii) (iii) calculating the value of the beneﬁt provided: attributing certain fringe beneﬁts to employees: setting out the taxable value of certain fringe beneﬁts: providing options for the payment of FBT to the Commissioner: (iv) the ESCT rules and RSCT rules by setting out the payments to which the rules apply and calculating the amounts of tax that must be withheld and paid to the Commissioner under the rules.
(b) (c) Deﬁned in this Act: amount of tax, Commissioner, employee, employer, ESCT rules, FBT, FBT rules, fringe beneﬁt, fringe beneﬁt tax, pay, PAYE rules, RSCT rules Section RD 1(c): amended, on 1 April 2008, by section 538 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RD 1 list of deﬁned terms RSCT rules: inserted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
PAYE rules and PAYE income payments Introductory provisions RD 2 PAYE rules and their application Meaning The PAYE rules means— (a) (b) section BC 1 (Non-ﬁling and ﬁling taxpayers); and sections LA 6, LB 1, and LD 4 (which relate to tax credits); and sections RD 3 to RD 24; and sections RP 2 to RP 16 (which relate to PAYE inter- mediaries); and (c) (d) (1) 2580 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 3 (2) (3) (e) sections 15C to 15M, 24, 24B to 24P, 48, and 133, Part 9, and sections 167 to 169of the Tax Administration Act 1994.
Application The PAYE rules apply to a person who makes or is required to make a PAYE income payment and, in certain circumstances, to the person to whom the PAYE income payment is made.

Deceased employers The executor or administrator of a deceased employer must complete any uncompleted PAYE obligations of the employer.
Deﬁned in this Act: employer, PAYE income payment, PAYE rules Compare: 2004 No 35 ss NC 15(4), OB 1 “PAYE rules” Section RD 2(1)(b): substituted, on 6 January 2010, by section 502 of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 3 PAYE income payments (1) Meaning generally The PAYE rules apply to a PAYE income payment which— (a) means— (i) a payment of salary or wages, see section RD 5; or extra pay, see section RD 7; or a schedular payment, see section RD 8: (ii) (iii) does not include— (i) (b) (ii) (iii) an amount attributed under section GB 29 (Attri- bution rule: calculation): an amount paid to a shareholder-employee in the circumstances set out in subsection (2): an amount paid or beneﬁt provided, by a person (the claimant) who receives a personal service rehabilitation payment from which an amount of tax has been withheld at the rate speciﬁed in schedule 4, part I (Rates of tax for schedular pay- ments) or under section RD 18 (Schedular pay- ments without notiﬁcation), to another person for providing a key aspect of social rehabilitation re- ferred to in paragraph (c) of the deﬁnition of per- 2581 Part R s RD 3 Income Tax Act 2007 Reprinted as at 29 May 2012 sonal service rehabilitation payment in section YA 1 (Deﬁnitions).
(2) When subsections (3) and (4) apply: close companies Subsections (3) and (4) apply for an income year when a per- son is a shareholder-employee of a close company, and— (a) they do not derive as an employee salary or wages of a regular amount for regular pay periods— (i) (ii) of 1 month or less throughout the income year; or that total 66% or more of the annual gross income of the person in the corresponding tax year as an employee; or (b) an amount is paid as income that may later be allocated to them as an employee for the income year.
(3) Income in current tax year The person may choose to treat all amounts paid to them in the income year in their capacity as employee of the close com- pany as income other than from a PAYE income payment.

Income in later tax years (4) All amounts paid to the person in later income years in their capacity as employee of the close company are treated as in- come other than from a PAYE income payment.
If questions arise If a question arises whether the PAYE rules apply to all or part of a PAYE income payment, other than an amount referred to in subsections (2) to (4), the Commissioner must determine the matter.
Deﬁned in this Act: amount, annual gross income, close company, Commis- sioner, employee, extra pay, income, income year, pay, pay period, PAYE in- come payment, PAYE rules, salary or wages, schedular payment, shareholder- employee, tax year Compare: 2004 No 35 ss NC 1(2), OB 2 Section RD 3(1)(b)(ii): amended, on 1 July 2008, by section 539 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RD 3(1)(b)(iii): substituted (with effect on 1 July 2008), on 6 October 2009, by section 503(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 3(1)(b)(iii): added, on 1 July 2008, by section 539 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
(5) 2582 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 4 Section RD 3(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 503(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 3(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 503(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 4 Payment of amounts of tax to Commissioner Payments monthly or fortnightly (1) An employer or PAYE intermediary who withholds an amount of tax for a PAYE income payment must pay the amount to the Commissioner as follows (a) on a monthly basis, if they are an employer to whom section RD 22(3) or (4) applies: for 2 payment periods in a month, if paragraph (a) does not apply.
(b) (2) (3) Liability when amount not withheld If some or all of the amount of tax for a PAYE income payment is not withheld under subsection (1), the employee in relation to whom the payment is made must— (a) pay an amount equal to the amount of tax to the Com- missioner by the 20th day of the month following that in which the PAYE income payment was made; and provide an employer monthly schedule to the Commis- sioner by the date described in paragraph (a).
(b) When taxable activity ends Section RA 17 (Payment date when RWT exemption certiﬁ- cate expires) overrides subsection (1).
Deﬁned in this Act: amount, amount of tax, Commissioner, employee, em- ployer, employer monthly schedule, pay, PAYE income payment, PAYE inter- mediary Compare: 2004 No 35 ss NC 15(1), NC 16 Section RD 4(2): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 125(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
2583 Part R s RD 5 Income Tax Act 2007 Reprinted as at 29 May 2012 Types of PAYE income payments RD 5 Salary or wages (1) Meaning Salary or wages— (a) means a payment of salary, wages, or allowances made (b) (c) to a person in connection with their employment; and includes— (i) a bonus, commission, gratuity, overtime pay, or other pay of any kind; and a payment described in subsections (2) to (8); and an accident compensation earnings-related pay- ment; and (ii) (iii) does not include— (i) (ii) (iii) (iv) income described in section an amount of exempt income: an extra pay: a schedular payment: an amount of RD 3(3) and (4): an employer’s superannuation contribution other than a contribution referred to in subsection (9): a payment excluded by regulations made under this Act.
(v) (vi) (d) [Repealed] Employees’ expenditure on account (2) A payment of expenditure on account of an employee is in- cluded in their salary or wages.

Payments to working partners (3) A payment to a working partner under section DC 4 (Payments to working partners) is included in their salary or wages.

Payments to working owners (3B) A payment to a working owner under section DC 3B (Pay- ments to working owners) is included in their salary or wages.
Payments to past employees (4) A periodic payment of a pension, allowance, or annuity made to a person or their spouse, civil union partner, de facto partner, child, or dependant in connection with the past employment of the person is included in their salary or wages.
2584 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 5 (5) Payments to Governor-General, members of Parliament, and judicial ofﬁcers The following payments made under a determination of the Remuneration Authority are included in salary or wages (aa) (a) (b) salary made to the Governor-General: salary or allowances made to a member of Parliament: salary and principal allowances made to a judicial ofﬁ- cer.
(5B) A payment to a person made under section 7 of the Governor- General Act 2010 is included in the salary and wages of that person.
Certain beneﬁts and grants (6) A payment of the following beneﬁts or grants is included in salary or wages (a) (b) (bb) a gratuitous payment as described in paragraph (a) of the deﬁnition of pension in section CF 1(2) (Beneﬁts, pensions, compensation, and government grants): an income-tested beneﬁt: a veteran’s pension, other than a veteran’s pension paid under section 74J(2)(b) of the War Pensions Act 1954: (bc) New Zealand superannuation, other than New Zealand superannuation paid under section 26(2)(b) of the New Zealand Superannuation and Retirement Income Act 2001: a living alone payment: a basic grant and independent circumstances grant made under regulations made under section 193 of the Educa- tion Act 1964, section 303 of the Education Act 1989, or an enactment substituted for those sections.
(bd) (c) Parental leave payments (7) A parental leave payment made under Part 7A of the Parental Leave and Employment Protection Act 1987 is included in salary or wages.

Accommodation beneﬁts (8) A beneﬁt treated as income under section CE 1(1B) (Amounts derived in connection with employment) is included in salary or wages.
2585 Part R s RD 5 Income Tax Act 2007 Reprinted as at 29 May 2012 Cash contributions (9) An amount of an employer’s superannuation cash contribution that an employee chooses to have treated as salary or wages under section RD 68 is included in salary or wages.
Deﬁned in this Act: accident compensation earnings-related payment, accom- modation, amount, de facto partner, employer’s superannuation cash contribu- tion, employer’s superannuation contribution, employment, exempt income, ex- penditure on account of an employee, extra pay, income, income-tested bene- ﬁt, living alone payment, New Zealand superannuation, pay, salary or wages, schedular payment, veteran’s pension Compare: 2004 No 35 s OB 1 “salary or wages” Section RD 5(1)(b)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 504(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 5(1)(c)(v): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 126(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 5(1)(c)(v): substituted (with effect on 1 April 2008), on 6 October 2009, by section 504(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 5(1)(c)(vi): amended, on 1 April 2012, by section 8(1) of the Tax- ation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 5(1)(c)(vi): amended, on 1 April 2008, by section 133 of the Taxa- tion (KiwiSaver) Act 2007 (2007 No 110).

Section RD 5(1)(d): repealed, on 1 April 2012, by section 8(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section RD 5(3B) heading: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 126(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 5(3B): inserted, on 1 April 2011 (applying for income years be- ginning on or after 1 April 2011), by section 126(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section RD 5(5) heading: amended, on 23 November 2010, by section 24(1) of the Governor-General Act 2010 (2010 No 122).

Section RD 5(5)(aa): inserted, on 23 November 2010, by section 24(2) of the Governor-General Act 2010 (2010 No 122).

Section RD 5(5B): inserted, on 23 November 2010, by section 24(3) of the Governor-General Act 2010 (2010 No 122).
Section RD 5(6)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 504(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 5(6)(b): substituted, on 5 January 2010, by section 102 of the Tax- ation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
2586 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 6 Section RD 5(6)(bb): inserted, on 5 January 2010, by section 102 of the Tax- ation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 5(6)(bc): inserted, on 5 January 2010, by section 102 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 5(6)(bd): inserted, on 5 January 2010, by section 102 of the Tax- ation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 5(6)(c): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 122(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RD 5(8) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 504(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 5(8): added (with effect on 1 April 2008), on 6 October 2009, by section 504(5) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section RD 5(8): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RD 5(9) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 504(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 5(9): added (with effect on 1 April 2008), on 6 October 2009, by section 504(6) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section RD 5 list of deﬁned terms accommodation: inserted (with effect on 1 April 2008), on 6 October 2009, by section 504(7) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 5 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 504(8) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 6 Certain beneﬁts and payments (1) When this section applies This section applies when an employee receives— (a) an accommodation beneﬁt treated as income under sec- tion CE 1(1B) (Amounts derived in connection with em- ployment); or another beneﬁt in kind that is included in their salary or wages; or 1 or more of the following payments: (b) (c) 2587 Part R s RD 7 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (i) (ii) (iii) (iv) a superannuation payment: a pension: a retiring or other allowance: an annuity.
Value or amount included in salary or wages The value of the beneﬁt or amount of the payment is treated as— (a) (b) accruing from day to day; and included in the employee’s salary or wages for the pay period or, as applicable, as part of their salary or wages for the pay period.
When non-cash beneﬁt treated as paid If the employee receives the beneﬁt otherwise than in cash, the value is treated as paid— (a) for a beneﬁt that constitutes the only salary or wages of the employee, on the last day of the pay period; or for all other beneﬁts, when the last amount of salary or wages for the pay period is paid.
(b) Deﬁned in this Act: accommodation, employee, employment, pay, pay period, salary or wages Compare: 2004 No 35 s NC 4 Section RD 6(1)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 505(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 6(1)(a): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RD 6(1)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 505(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 6 list of deﬁned terms accommodation: inserted (with effect on 1 April 2008), on 6 October 2009, by section 505(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 7 Extra pay Meaning (1) An extra pay— (a) means a payment that— (i) is made to a person in connection with their em- ployment; and 2588 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 8 (ii) (iii) (iv) is not a payment regularly included in salary or wages payable to the person for a pay period; and is not overtime pay; and is made in 1 lump sum or in 2 or more instal- ments; and (b) (c) (d) includes a payment of the kind described in paragraph (a) made— (i) (ii) (iii) when the person retires from employment; or (iv) as a bonus, gratuity, or share of proﬁts; or as a redundancy payment; or as a result of a retrospective increase in salary or wages, but only to the extent described in subsec- tion (2); and includes an amount of income that a person derives under section CE 9 (Restrictive covenants) or CE 10 (Exit inducements) if the income is derived in connec- tion with an employment relationship between the per- son and the person who paid the amount; and does not include a payment of exempt income.
Limit on retrospective increase in salary or wages (2) A payment described in subsection (1)(b)(iv) is included in extra pay only to the extent to which,— (a) it accrues from the start of the increase until the start of the ﬁrst pay period in which the increase is included in salary or wages; and (b) when a week ends with a Saturday, the total of the in- crease for the week, and of the salary or wages for the week excluding the increase, and of any other salary or wages that the person earns for the week, is more than $4.
Deﬁned in this Act: amount, employment, exempt income, income, pay, pay period, salary or wages Compare: 2004 No 35 s OB 1 “extra pay” RD 8 Schedular payments Meaning (1) A schedular payment— (a) means— 2589 Part R s RD 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (i) (ii) a payment of a class set out in schedule 4 (Rates of tax for schedular payments); and in relation to a sale, the net amount paid after sub- tracting from the purchase price all commission, insurance, freight, classing charges and other ex- penses incurred by the seller in connection with the sale; and does not include— (i) (ii) (iii) salary or wages; or an extra pay; or a payment for services provided by a public au- thority, a local authority, a Maori authority, or a company, other than a non-resident contractor, a non-resident entertainer, or an agricultural, horti- cultural, or viticultural company; or a payment covered by an exemption certiﬁcate provided under section 24M of the Tax Admin- istration Act 1994; or a payment for services provided by a non-resi- dent contractor who has full relief from tax under a double tax agreement, and is present in New Zealand for 92 or fewer days in a 12-month period; or a contract payment for a contract activity or ser- vice of a non-resident contractor when the total amount paid for those activities to the contractor or another person on their behalf is $15,000 or less in a 12-month period.
(iv) (v) (vi) Protected payments The fact that a schedular payment may be protected against assignment or charge does not override a person’s obligation to withhold the amount of tax for the payment.

Determination of expenditure incurred The Commissioner may determine from time to time the amount or proportion of expenditure that a person incurs in deriving a particular schedular payment or class of schedular payments.
Deﬁned in this Act: agricultural, horticultural, or viticultural company, amount, amount of tax, Commissioner, company, contract activity or service, contract (2) (3) 2590 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 10 payment, double tax agreement, exemption certiﬁcate, extra pay, local author- ity, Maori authority, New Zealand, non-resident contractor, non-resident enter- tainer, pay, public authority, salary or wages, schedular payment Compare: 2004 No 35 s NC 21(f)–(h), Income Tax (Withholding Payments) Regulations 1979, regulations 2, 4, 6–8 Section RD 8(1)(b)(v): amended (with effect on 1 April 2008), on 6 October 2009, by section 506 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Calculating amounts of tax RD 9 Maximum amount When a person calculates an amount of tax for a PAYE income payment, they must use the maximum rate under schedule 2 (Basic tax rates for PAYE income payments) at the time for the payment and the person receiving the payment, unless this Act states otherwise.
Deﬁned in this Act: amount of tax, pay, PAYE income payment Compare: 2004 No 35 s NC 6(1A), (3) RD 10 Amounts of tax for PAYE income payments (1) PAYE income payments other than schedular payments The amount of tax for a PAYE income payment that a per- son must withhold and pay to the Commissioner under section RA 5 (Tax obligations for employment-related taxes) is the relevant amount under schedule 2 (Basic tax rates for PAYE in- come payments).
Subsections (2) and (3) and sections RD 12 to RD 20 override this subsection.
Choosing rate for extra pay (2) An employee who notiﬁes their employer of their tax code may choose to have the amount of tax for an extra pay ﬁxed as follows: (a) for an employee whose taxable income for the income year is expected to be not more than $48,000, the rate set out in schedule 2, part B, table 1, row 2; or for an employee whose taxable income for the income year is expected to be not more than $70,000, the rate set out in schedule 2, part B, table 1, row 3; or for other employees, the rate set out in schedule 2, part B, table 1, row 4.
(b) (c) 2591 Part R s RD 10 Income Tax Act 2007 Reprinted as at 29 May 2012 Relationship with section RD 17 (2B) Despite subsection (2), a person must not choose a rate set out in schedule 2, part B, table 1 that is lower than the rate that would apply to the amount of extra pay under section RD 17.
(b) Schedular payments The amount of tax for a schedular payment is determined— (a) at the relevant rate set out in schedule 4 (Rates of tax for schedular payments); and on the basis of the gross amount of the payment, whether— (i) (ii) some or all of the payment is income; and the full income tax liability lies with the person receiving the payment, or lies partly with an em- ployee or subcontractor of the person.
Tax tables The Commissioner may provide tables for the calculation of an amount of tax for a PAYE income payment that may in- corporate other relevant information.
Deﬁned in this Act: amount, amount of tax, Commissioner, employee, em- ployer, extra pay, gross, income, income tax liability, income year, notify, pay, PAYE income payment, schedular payment, tax code, taxable income Compare: 2004 No 35 ss NC 6, NC 8(1A), Income Tax (Withholding Payments) Regulations 1979, regulation 3 Section RD 10(2)(a): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 10(2)(a): amended, on 1 October 2008, by section 14(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RD 10(2)(b): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 10(2)(c): added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 10(2B) heading: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(2) of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 10(2B): inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 103(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
(3) (4) 2592 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 11 RD 11 Reduction in certain circumstances Special circumstances (1) Despite sections RD 2 to RD 10, the Commissioner may, in special circumstances, reduce the amount of tax for a PAYE income payment to an employee or a class of employees.

The PAYE rules then apply as if amended.
(2) (3) (4) When schedule or regulations inapplicable If the amount of tax for a PAYE income payment cannot be determined under schedule 2 (Basic tax rates for PAYE income payments) or under regulations made under this Act because of the size of the PAYE income payment, or the number of the employee’s dependants, or for any other reason, the amount of tax for the payment must be determined by the Commissioner, taking into account the factors considered in ﬁxing the amount of tax for other similar payments.
Income-tested beneﬁts and education allowances The amount of tax for a PAYE income payment that is an in- come-tested beneﬁt or an allowance paid under regulations made under section 303 of the Education Act 1989 must be de- termined by the Commissioner in consultation with the chief executive of the administering department or the Secretary of Education.
When Commissioner makes determination under section RD 8(3) If the Commissioner makes a determination under section RD 8(3) in relation to the amount or proportion of expenditure that a person incurs in deriving a schedular payment, the basis for calculating the amount of tax for the schedular payment is the reduced amount found after subtracting the amount or proportion of expenditure determined by the Commissioner from the amount of the payment.

This subsection overrides section RD 10(3).
Deﬁned in this Act: amount, amount of tax, chief executive of the administer- ing department, Commissioner, employee, income-tested beneﬁt, PAYE income payment, PAYE rules, schedular payment Compare: 2004 No 35 ss NC 6(1C), (1D), NC 13, Income Tax (Withholding Payments) Regulations 1979, regulation 6(3) 2593 Part R s RD 12 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 11(4) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 507(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 11(4): added (with effect on 1 April 2008), on 6 October 2009, by section 507(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 11 list of deﬁned terms amount: inserted (with effect on 1 April 2008), on 6 October 2009, by section 507(2) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 11 list of deﬁned terms schedular payment: added (with effect on 1 April 2008), on 6 October 2009, by section 507(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 11 compare note: amended (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 507(3) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Adjustments for certain PAYE income payments RD 12 Multiple payments of salary or wages When this section applies This section applies when an employee receives more than 1 payment of salary or wages in a week or part of a week that ends on a Saturday.

The employment may relate to 1 or more employment situations.
When this section does not apply This section does not apply— (a) when an employee leaves regular full-time employment before engaging in another regular full-time employ- ment; or to salary or wages from employment as a casual agri- cultural employee, election day worker, or non-resident seasonal worker.
(b) Treatment as 1 payment The total amount of tax for all payments of salary or wages is the amount that would be required to be withheld if all the payments were treated as 1 payment made by 1 employer for the week.
Deﬁned in this Act: amount of tax, casual agricultural employee, election-day worker, employee, employer, employment, non-resident seasonal worker, pay, salary or wages Compare: 2004 No 35 s NC 10 (1) (2) (3) 2594 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 13B Section RD 12(2)(b): substituted (with effect on 1 April 2009), on 6 October 2009, by section 508(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 12 list of deﬁned terms non-resident seasonal worker: inserted (with effect on 1 April 2009), on 6 October 2009, by section 508(2) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 13 Advance payments of salary or wages (1) (2) (3) When this section applies: increase in amount of tax This section applies when— (a) an employee receives from an employer a payment of salary or wages referred to in section RA 5(1)(a) and (c) (Tax obligations for employment-related taxes); and the amount of tax under schedule 2 (Basic tax rates for PAYE income payments) for all or part of the payment is increased; and the payment is made before the date of the increase.
(b) (c) When this section applies: becoming subject to PAYE rules This section also applies when all or part of a payment of salary or wages becomes subject to the PAYE rules, but the payment is made before the date on which it becomes subject to the rules.

Addition to amount of tax for next payment The amount of the difference caused by the increase referred to in subsection (1)(b) is added to the amount of tax for the next payment of salary or wages made by the employer to the employee.
Deﬁned in this Act: amount of tax, employee, employer, pay, PAYE rules, salary or wages Compare: 2004 No 35 s NC 11 Section RD 13(1)(a): substituted (with effect on 1 April 2008) on 6 October 2009, by section 509(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 13B Adjustments for payroll donations (1) When this section applies This section applies when an employee makes a payroll do- nation for a pay period for which they have a tax credit under section LD 4 (Tax credits for payroll donations).
2595 Part R s RD 14 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) Subtracting amount of tax credit The employer or PAYE intermediary must subtract the amount of the tax credit from the amount of tax for the employee’s PAYE income payment for the pay period and record the in- formation in the relevant employer monthly schedule.
Deﬁned in this Act: employee, employer, employer monthly schedule, pay period, PAYE income payment, PAYE intermediary, payroll donation, tax credit Section RD 13B: inserted, on 6 January 2010, by section 510 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 14 Changes to tax rates for salary or wages When subsection (2) applies Subsection (2) applies when a change occurs to the amounts of tax for PAYE income payments set out in schedule 2 (Basic tax rates for PAYE income payments).
(b) Determining amount of tax The amount of tax for a payment of salary or wages for the pay period in which the change occurs is determined as follows: (a) for a pay period of 1 month or less, the amount of tax for the full payment for the pay period is the altered amount: for a pay period of more than 1 month, the amount of tax is determined on the basis set out in schedule 2, clause 2, by— (i) determining the proportionate parts of the pay- ment before and after the change; and calculating each part of the relevant amount of tax; and adding together the relevant amounts of tax.
(ii) (iii) When subsection (4) applies Subsection (4) applies for a week when— (a) a change occurs to the amounts of tax for PAYE income payments set out in schedule 2; and an employee receives more than 1 payment of salary or wages for the week as described in section RD 12.
(b) (1) (2) (3) 2596 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 15 (4) (5) Determining amount of tax The total amount of tax for all payments of salary or wages for the week in which the change occurs is the amount determined under section RD 12.
Later payment for earlier services The amount of tax for a payment of salary or wages made after the date of the change for a pay period ending before the date in relation to services provided before the date must be calculated using the basic amounts of tax for PAYE income payments applicable in the pay period or week.
Deﬁned in this Act: amount of tax, employee, pay, pay period, PAYE income payment, salary or wages Compare: 2004 No 35 s NC 12 RD 15 Payments of salary or wages in pay periods (1) (2) (3) Payment for part of period If an employee who is in regular full-time employment is paid salary or wages for part of a pay period, the payment is treated as a payment for a full pay period.
Payment on production basis If an employee who is paid on a production basis for work performed as a piece worker or out-worker is paid salary or wages, the payment is treated as payment for the period that runs from the date the work starts to the date of its completion.

Payments in several sums If a PAYE income payment for a pay period is paid in 2 or more separate sums, those sums must be added together to determine the amount of tax for the payment.
When impractical to make payments at same time (4) Despite subsection (3), if it is impractical for an employer to pay an employee overtime pay and other salary or wages for a pay period at the same time, the employer may add the amount of the overtime pay of the employee to their salary or wages for a later pay period, but not their overtime pay if, for both pay periods,— (a) the amounts of the employee’s salary or wages are more or less the same; and 2597 Part R s RD 16 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) (b) (c) the amounts of tax withheld from the employee’s salary or wages are the same; and the employee has the same tax code.
Periods not coinciding For the purposes of subsection (4), if overtime pay is paid for a particular period that is the same length as a pay period but does not coincide with a pay period, it may be treated as over- time pay for the pay period in which the particular period ends.
Deﬁned in this Act: amount of tax, employee, employer, employment, pay, pay period, PAYE income payment, salary or wages, tax code, tax withheld Compare: 2004 No 35 s NC 2(2)–(4) RD 16 Payments to private domestic workers (1) When this section applies This section applies to a person who is employed as a private domestic worker by another person and— (a) the employer is the occupier, or 1 of the occupiers, of a house or premises used exclusively for residential pur- poses; and the employment— (i) (b) is for the performance of work in or about the house or premises, or a garden or grounds be- longing to the house or premises; and is not for a business carried on by the employer, or an occupation or calling of the employer; and is not regular full-time employment.
(ii) (iii) No amount of tax withheld (2) No amount of tax is required to be withheld for a PAYE income payment relating to the person’s employment as a private do- mestic worker when sections RA 8 (Liability of persons re- ceiving payments or beneﬁts) and RD 4(2) apply.
Deﬁned in this Act: amount of tax, business, employer, employment, PAYE income payment, private domestic worker Compare: 2004 No 35 s NC 2(1) 2598 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 17 RD 17 Payment of extra pay with other PAYE income payments (1) When this section applies This section applies when a person pays an amount of extra pay to an employee who also receives a PAYE income payment from the person, regardless of whether the extra pay is paid with or separately from a PAYE income payment.
The amount of tax for the extra pay is based on the sum of— (a) (b) the amount of the extra pay; and the annualised value of all PAYE income payments made to the employee in the period that starts 4 weeks before the date of the payment of the extra pay and ends on the date of that payment.

Calculating annualised value (1B) For the purposes of calculating the amount that is the annu- alised value referred to in subsection (1)(b), the amount of the extra pay referred to in subsection (1)(a) is excluded.
(2) Rates applying For the sum of the amounts referred to in subsection (1) listed in the following paragraphs, the amount of tax for the extra pay that must be withheld is the amount determined using the basic amounts of tax for PAYE income payments set out in the relevant row of schedule 2, part B, table 1 (Basic tax rates for PAYE income payments): (a) if the sum of the amounts is $14,000 or less, the amount determined by applying row 1: if the sum of the amounts is more than $14,000 but not more than $48,000, the amount determined by applying row 2: if the sum of the amounts is more than $48,000 but not more than $70,000, the amount determined by applying row 3: if the sum of the amounts is more than $70,000, the amount determined by applying row 4.
(b) (c) (d) When secondary tax codes apply (3) Despite subsection (2), if the person pays an amount of extra pay to an employee in relation to which the employee has notiﬁed the person that a secondary code under section 24B(3)(bb), (c), (d), or (e)of the Tax Administration Act 1994 2599 Part R s RD 17 Income Tax Act 2007 Reprinted as at 29 May 2012 applies, the rate under schedule 2, part B, table 1 applying to the extra pay is determined using the formula— extra pay + annualised amount + low threshold amount.
Deﬁnition of items in formula In the formula,— (a) (b) (c) extra pay is the amount of the employee’s extra pay: annualised amount is the amount given by subsections (1)(b) and (1B): low threshold amount is, as applicable,— (i) (ii) (iii) (iv) for secondary code SB, $0: for secondary code S, $14,001: for secondary code SH, $48,001: for secondary code ST, $70,001.
Deﬁned in this Act: amount, amount of tax, employee, extra pay, pay, PAYE income payment Compare: 2004 No 35 s NC 2(5) Section RD 17(1) heading: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 104(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 17(1): substituted (with effect on 1 April 2008), on 7 December 2009, by section 104(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 17(1B) heading: inserted (with effect on 1 April 2008), on 7 De- cember 2009, by section 104(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 17(1B): inserted (with effect on 1 April 2008), on 7 December 2009, by section 104(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 17(2) heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 17(2): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 17(3) heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RD 17(3): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RD 17(4) heading: added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

(4) 2600 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 18 Section RD 17(4): added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 104(2) of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).
RD 18 Schedular payments without notiﬁcation (1) (2) (3) (4) When this section applies This section applies when a person makes a schedular payment but the notiﬁcation required under section 24L of the Tax Ad- ministration Act 1994 has not been provided to them.

When this section does not apply This section does not apply when a person other than a company incorporates a company to obtain a reduction in an amount of tax for a schedular payment.
Additional amount of tax The person must withhold, in addition to the amount calculated under section RD 10(3), an amount of tax for the schedular payment determined as follows: (a) (ii) 5% of the amount of the schedular payment if— (i) the person receiving the payment is a company that is a non-resident contractor; and the non-resident contractor receives the payment other than as a result of a choice that is made for the purposes that include a purpose of defeating the intent and application of paragraph (b): 15% of the amount of the schedular payment in all other cases.
(b) Non-application to non-resident entertainers This section does not apply if the schedular payment is made to a non-resident entertainer.
Deﬁned in this Act: amount, amount of tax, company, non-resident contractor, non-resident entertainer, notify, pay, schedular payment Compare: 2004 No 35 s NC 7(2) Section RD 18(3) heading: substituted (with effect on 1 April 2008) on 6 Oc- tober 2009, by section 512(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 18(3): substituted (with effect on 1 April 2008) on 6 October 2009, by section 512(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2601 Part R s RD 19 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 18(4) heading: added (with effect on 1 April 2008) on 6 October 2009, by section 512(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 18(4): added (with effect on 1 April 2008) on 6 October 2009, by section 512(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

RD 19 Schedular payments to non-resident entertainers (1) (2) (3) When this section applies This section applies when a non-resident entertainer derives income from an activity or performance connected with any of the activities or performances described in the deﬁnition of non-resident entertainer.
Amounts withheld [Repealed] [Repealed] Amounts not withheld If the entertainer has received a schedular payment from which no amount of tax has been withheld, the entertainer must pay the amount of tax to the Commissioner by the 20th day of the month following that in which the payment was made, or by the date of their departure from New Zealand if that is earlier.
Deﬁned in this Act: amount, amount of tax, Commissioner, income, income tax liability, New Zealand, non-resident entertainer, pay, schedular payment, tax year Compare: Income Tax (Withholding Payments) Regulations 1979, regulations 10, 11 Section RD 19(2) heading: repealed (with effect on 1 April 2008), on 6 Octo- ber 2009, pursuant to section 513 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 19(2): repealed (with effect on 1 April 2008), on 6 October 2009, by section 513 of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

RD 20 Schedular payments to subcontractors When this section applies This section applies when a contractor is paid a schedular pay- ment for services provided under a contract, and a subcon- tractor has provided services under the contract.
(1) 2602 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 22 (2) Obligation to retain amount The PAYE rules apply to the contractor in relation to a payment made to the subcontractor in relation to the work carried out under the contract.
Deﬁned in this Act: pay, PAYE rules, schedular payment Compare: Income Tax (Withholding Payments) Regulations 1979, regulation 12 Paying amounts of tax RD 21 When amounts of tax not withheld or payment insufﬁcient (1) (2) (3) Employees’ obligations If, for any reason, some or all of the amount of tax for a PAYE income payment is not withheld at the time it is paid to an employee, the employee must— (a) provide an employer monthly schedule with the relevant details; and pay the amount of the deﬁciency.
(b) When person exempt or not liable to pay Subsection (1)(b) does not apply if the employee is exempt from paying the amount or is not liable for the amount of tax.

When payment less than amount of tax If the amount of a PAYE income payment is less than the amount of tax for the payment, the employee must pay the amount of the deﬁciency to their employer or PAYE intermedi- ary.
If the employee does not pay the amount of the deﬁciency to their employer or PAYE intermediary, they must pay the amount to the Commissioner under section RD 4(2).
Deﬁned in this Act: amount, amount of tax, Commissioner, employee, em- ployer, employer monthly schedule, pay, PAYE intermediary, PAYE income payment Compare: 2004 No 35 s NC 5 RD 22 Returns for amounts of tax paid to Commissioner Paying amount withheld with returns (1) An employer or a PAYE intermediary who withholds an amount of tax from a PAYE income payment must pay the amount to the Commissioner under section RD 4 and provide 2603 Part R s RD 22 Income Tax Act 2007 Reprinted as at 29 May 2012 an employer monthly schedule and a PAYE income payment form in relation to the amount.
(2) General rule The employer or PAYE intermediary must provide the PAYE income payment form referred to in subsection (1) by— (a) the 20th day of the month in which they withhold an amount of tax for a PAYE income payment in a ﬁrst payment period described in section RA 15(3) (Payment dates for interim and other tax payments): the 5th day of the month following that in which they withhold an amount of tax for a PAYE income pay- ment in a second payment period described in section RA 15(3), or if the month is December, by the 15th day of January.
(b) Employer monthly schedule (2B) The employer or PAYE intermediary must provide the em- ployer monthly schedule referred to in subsection (1) by the 5th day of the month following that in which they withhold an amount of tax for a PAYE income payment, or if the month is December, by the 15th day of January.
Returns when gross amounts of tax are less than $500,000 (3) Despite subsections (2) and (2B), an employer who meets the requirements of subsection (3B) must provide the employer monthly schedule and the PAYE income payment form by the 20th day of the month following that in which an amount of tax is withheld.
Requirements (3B) For the purposes of subsection (3), the employer must— (a) (b) not be a new employer; and have gross amounts of tax of less than $500,000 with- held under section RA 5(1)(a) and (c) (Tax obligations for employment-related taxes) for both— (i) (ii) PAYE income payments: employer’s superannuation cash contributions.
New employers (4) Despite subsections (2) and (2B), an employer who is a new employer must provide the employer monthly schedule and the PAYE income payment form by the 20th day of the month 2604 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 22 (5) (6) (7) following that in which an amount of tax is withheld until their gross amounts of tax for PAYE income payments and em- ployer’s superannuation cash contributions payable for the tax year are more than $500,000.
Thresholds For the purposes of determining whether the threshold referred to in subsections (3) and (4) is reached, if the employer ends their business and starts a new business, or operates 2 or more businesses at the same time, all amounts of tax withheld must be aggregated.
When business ended In addition to the requirements of subsections (2) to (4), if the employer stops carrying on a business in relation to which an amount of tax for a PAYE income payment has been withheld, they must notify the Commissioner of the cessation by the 15th day of the second month following the month in which the business is ended.
(b) (c) Single employer For the purposes of subsections (3) and (4), the following are treated as 1 employer: (a) 2 or more companies if they were a group of companies at a time in the relevant tax year: all partners in a partnership: all persons in whom property has become vested, or to whom the control of property has passed in the case of— (i) (ii) (iii) (iv) (v) an estate of a deceased person; or a trust; or a company in liquidation; or an assigned estate; or another ﬁduciary relationship.
Deﬁned in this Act: amount of tax, business, Commissioner, company, em- ployer, employer monthly schedule, employer’s superannuation cash contribu- tion, employer’s superannuation contribution, ﬁrst payment period, gross, group of companies, liquidation, notify, pay, PAYE income payment, PAYE income payment form, PAYE intermediary, second payment period, tax withheld, tax year Compare: 2004 No 35 s NC 15(1), (5), (6) 2605 Part R s RD 22 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 22 heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 514(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(1) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 514(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 22(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 514(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(2): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 127(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 22(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 514(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(2B) heading: inserted (with effect on 1 April 2008), on 21 De- cember 2010 (applying for the 2008–09 and later income years), by section 127(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 22(2B): inserted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 127(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section RD 22(3) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 514(4) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 22(3) heading: amended (with effect on 1 April 2009), on 6 October 2009, by section 514(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(3) heading: amended, on 1 April 2009, by section 15(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 22(3): substituted (with effect on 1 April 2008), on 6 October 2009, by section 514(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(3): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 127(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 22(3): amended, on 1 April 2009, by section 15(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
Section RD 22(3B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 514(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 22(3B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 514(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(3B)(b): amended (with effect on 1 April 2009), on 6 October 2009, by section 514(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2606 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 23 Section RD 22(4): substituted (with effect on 1 April 2008), on 6 October 2009, by section 514(7) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(4): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 127(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 22(4): amended (with effect on 1 April 2009), on 6 October 2009, by section 514(8) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22(4): amended, on 1 April 2009, by section 15(c) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 22(6): substituted (with effect on 1 April 2008), on 6 October 2009, by section 514(9) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 22 list of deﬁned terms employer monthly schedule: inserted (with effect on 1 April 2008), on 6 October 2009, by section 514(10) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 22 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 514(10) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 23 Bonds given by employers of certain non-resident employees (1) (2) (3) When this section applies This section applies if it cannot reasonably be determined at the time an employer or PAYE intermediary is required to withhold the amount of tax for a PAYE income payment whether the payment will be exempt income of an em- ployee under either section CW 19 (Amounts derived during short-term visits) or a double tax agreement.
Providing bond The employer or PAYE intermediary may apply to the Com- missioner to be released from their obligation to withhold the amount by providing a bond or other security for the amount that would be required to be withheld but for this section.
Consequences of acceptance of bond If the Commissioner accepts the bond or security referred to in subsection (2),— 2607 Part R s RD 23 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) the employer or PAYE intermediary must not withhold the amount of tax for a PAYE income payment to the employee; and information concerning the employee must not be in- cluded in an employer monthly schedule; and the no notiﬁcation rate referred to in section 24B(3)(h) of the Tax Administration Act 1994 must not be used in relation to the PAYE income payment.
When subsection (3) no longer applies If the employee later becomes liable to pay income tax because of an event provided for in an arrangement made under section BH 1 (Double tax agreements) or CW 19, the application of subsection (3) ends, and the employer or PAYE intermediary must withhold the amount of tax for a PAYE income payment made to the employee.
Employee’s liability If the Commissioner considers that the employee is liable for income tax in relation to a PAYE income payment from which no amount of tax is withheld because of the application of subsection (3), the Commissioner must notify the employer or PAYE intermediary, as applicable.

The employer or inter- mediary must then account for and pay the total amount of tax for all PAYE income payments that would have been due, or a lesser amount as the Commissioner determines.
(4) (5) Treatment of amount paid under subsection (5) (6) An amount paid to the Commissioner under subsection (5) is treated as the amount of tax for a PAYE income payment made on the date of the Commissioner’s notice.

Section 120U of the Tax Administration Act 1994 overrides this subsection.
Deﬁned in this Act: amount, amount of tax, arrangement, Commissioner, dou- ble tax agreement, employee, employer, employer monthly schedule, exempt income, income tax, notify, pay, PAYE income payment, PAYE intermediary Compare: 2004 No 35 s NC 18 Section RD 23(4): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
2608 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 25 RD 24 Exemption certiﬁcates for non-resident contractors (1) (2) When this section applies This section applies when— (a) (b) (c) a non-resident contractor derives an amount from a con- tract activity or service that is not income, whether be- cause of a double tax agreement or for another reason; or the contractor provides a bond or other security for the payment of any income tax payable on an amount de- rived by them from a contract activity or service; or the contractor has in the period of 24 months before the date of the application referred to in subsection (2) paid all income tax payable by them and complied with their obligations under the Inland Revenue Acts, and the Commissioner is satisﬁed that the contractor will continue to do this.
Exemption certiﬁcate The non-resident contractor may apply to the Commissioner to provide them with an exemption certiﬁcate under section 24M of the Tax Administration Act 1994 for a contract pay- ment made to them or another person acting on their behalf in relation to a contract activity or service set out in the certiﬁcate for which no amount of tax is to be withheld.
Deﬁned in this Act: amount, amount of tax, Commissioner, contract activity or service, contract payment, double tax agreement, exemption certiﬁcate, income, income tax, Inland Revenue Acts, non-resident contractor, pay Compare: 2004 No 35 s NC 18(1), Income Tax (Withholding Payments) Regu- lations 1979, regulation 5(3) Fringe beneﬁt tax (FBT) rules and fringe beneﬁts Introductory provisions RD 25 FBT rules and their application (1) Meaning The FBT rules means— (a) sections CX 2 to CX 38 (which relate to fringe beneﬁts); and 2609 Part R s RD 26 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) (d) (e) sections GA 2, GB 31, and GB 32 (which relate to FBT); and sections RD 26 to RD 63; and schedules 1, part C (Basic tax rates: income tax, ESCT, RWT, and attributed fringe beneﬁts) and 5 (Fringe bene- ﬁt values for motor vehicles); and sections 46B to 46E, 93, Part 7, and section 139B of the Tax Administration Act 1994.
Application The FBT rules apply to an employer who provides a fringe beneﬁt to their employee in connection with their employment.

Deﬁned in this Act: employee, employer, employment, FBT, FBT rules, fringe beneﬁt Compare: 2004 No 35 s OB 1 “FBT rules” (2) RD 26 Liability for FBT Liability (1) An employer who provides a fringe beneﬁt to an employee is liable to pay FBT under sections RD 27 to RD 57, choosing a method of payment described in subsection (2).
Payment options (2) An employer must choose 1 of the following options for the payment of FBT: (a) (b) (c) the single rate option, see section RD 58; or the alternate rate option, see section RD 59; or if eligible, the close company option, see section RD 60; or if eligible, the small business option, see section RD 61.

(d) Election (3) An employer may make an election under subsection (2)(a) or (b) by providing a return setting out the rate chosen.
Deﬁned in this Act: business, close company, employee, employer, FBT, fringe beneﬁt, pay Compare: 2004 No 35 s ND 1(1)–(3) 2610 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 28 Value of fringe beneﬁts RD 27 Determining fringe beneﬁt values (1) (2) (3) What sections RD 28 to RD 53 do Sections RD 28 to RD 53 set out the rules for determining the value of a fringe beneﬁt provided by an employer to an employee in connection with their employment.
The taxable value of a fringe beneﬁt when an employee pays an amount for receiving the beneﬁt is dealt with in sections RD 54 to RD 57.

When value cannot be ascertained If, under sections RD 28, RD 29, and RD 33 to RD 41, the value of a fringe beneﬁt cannot be ascertained, the value is the market value or otherwise as the Commissioner determines.
Meaning of market value In subsection (2), market value means the price, at the time at which the goods or services were provided to the employee, for which the goods or services would normally be sold in a sale— (a) (b) (c) made on ordinary trade terms; and (d) Deﬁned in this Act: amount, Commissioner, employee, employer, employment, fringe beneﬁt, market value, New Zealand, pay Compare: 2004 No 35 ss ND 1A(1), ND 1L in the open market in New Zealand; and freely offered; and to a member of the public at arm’s length.
RD 28 Private use of motor vehicle: calculation methods (1) What this section does This section limits the way an employer may use a method for calculating the value of the beneﬁt that they provide to an em- ployee by making a motor vehicle available for the employee’s private use.
Choosing method in ﬁrst return (2) When a person ﬁrst ﬁles a return relating to a vehicle for the purposes of this section, they may calculate the value of the beneﬁt using either of the valuation methods set out in sched- ule 5 (Fringe beneﬁt values for motor vehicles).
2611 Part R s RD 28 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Using method in ﬁrst return The person must use the method chosen in the ﬁrst return re- ferred to in subsection (2) in calculating the value of the beneﬁt for the length of time— (a) (b) starting after the end of the period of the ﬁrst return; and continuing to the earliest of the following dates: (i) (ii) the date of the disposal of the vehicle: the date on which the vehicle ceases to be leased by the employer or an associated person without a consecutive or successive lease of the vehicle by them: the date that is 5 years after start of the period of the ﬁrst return.
(iii) (4) Returns after 5 years In a return relating to the vehicle for a period beginning 5 years or more after the start of the period of the ﬁrst return, the per- son may calculate the value of the beneﬁt using either of the valuation methods set out in schedule 5.
Cost price valuation method (5) Despite subsections (3) and (4), the person must apply sched- ule 5, clause 1 or 2, using the cost price valuation method if— the vehicle is owned, leased, or rented by the employer (a) or an associated person; and the employer or the associated person owned, leased, or rented the vehicle— (i) (b) during the period of the ﬁrst return, if the period begins before 1 April 2006: before 1 April 2006.
(ii) (6) Exception: vehicle not subject to arrangement Subsection (5) does not apply if a ﬁrst return for the vehicle is for a period that starts on or after 1 April 2006 and the vehicle is not the subject of an agreement or arrangement referred to in section CX 7 (Employer or associated person treated as having right to use vehicle under arrangement).
2612 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 29 (7) Exception: 5 years after ﬁrst return Subsection (5) does not apply if the person owns the vehicle and a period of 5 years or more since the start of the period of the ﬁrst return has elapsed.
Deﬁned in this Act: arrangement, associated person, employee, employer, lease, motor vehicle, private use Compare: 2004 No 35 s ND 1A(1)–(1D) RD 29 Private use of motor vehicle: formulas (1) (2) (3) (4) (5) What this section does This section sets out the formulas for calculating the value of the beneﬁt that an employer provides to an employee by making a motor vehicle available for their private use.
Quarterly payment If FBT is paid quarterly, the value of the beneﬁt is calculated using the formula— days × schedule 5 amount 90.

Annual payment If FBT is paid on an annual basis, the value of the beneﬁt is the total of the amounts calculated under subsection (2) for the 4 quarters in the applicable tax year.

Payment by income year If FBT is paid on an income year basis, the value of the beneﬁt is calculated using the formula— days × schedule 5 amount 365.
Deﬁnition of items in formulas In the formula,— (a) in subsection (2), days refers to the number of days in the quarter on which the vehicle is made available for private use, reduced by the number of days on which the vehicle was a work-related vehicle, or 90, whichever is less: in subsection (4), days refers to the number of days in the income year on which the vehicle is made available (b) 2613 Part R s RD 30 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) for private use, reduced by the number of days on which the vehicle was a work-related vehicle: in subsections (2) and (4), schedule 5 amount refers to the amount calculated under schedule 5 (Fringe beneﬁt values for motor vehicles) as the value of the beneﬁt that would have been received for unlimited private use of the vehicle in that quarter or income year, as applicable.
(6) Test period To calculate the value of the beneﬁt, an employer may choose to use a test period under section RD 31 to establish private use.

Deﬁned in this Act: amount, employee, employer, FBT, income year, motor vehicle, private use, quarter, tax year, work-related vehicle Compare: 2004 No 35 s ND 1A(2)–(6) RD 30 Private use of motor vehicle: 24-hour period (1) (2) (3) When this section applies This section applies for the purposes of a calculation of the value of a beneﬁt under section RD 29.
Meaning of day In section RD 29(5)(a) and (b), in relation to a motor vehicle and the item days in the formulas, a day is— (a) a 24-hour period starting from a time in a day that a person who owns or leases the vehicle chooses; or a 24-hour period starting at midnight if paragraph (a) does not apply.
(b) Choosing starting point and notifying Commissioner For the purposes of subsection (2)(a), the person must— (a) choose a starting point for the day that is a whole num- ber of an hour after midnight; and notify the Commissioner of their election when ﬁling the next return relating to the vehicle.
(b) Elections (4) An election under subsection (2)(a)— (a) (b) is effective from the start of the quarter, income year, or tax year to which a return relates; and applies to all vehicles in relation to which the person ﬁles a return.
2614 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 31 (5) Hour applying for 2 income years If the person chooses under subsection (3)(a) a particular hour in the 24-hour period as the starting point of the day, that hour continues to apply to the use of the vehicle from the start of the relevant quarter, income year, or tax year, as applicable, for a minimum period of 2 income years.
When circumstances change (6) An employer may ask the Commissioner to amend the starting point of the 24-hour period, or to treat the election as revoked, if the employer’s circumstances have changed in a way that— (a) (b) makes the starting point no longer relevant to the em- is more than minor; and ployer’s business.
Deﬁned in this Act: business, Commissioner, day, employer, income year, motor vehicle, notify, quarter, tax year Compare: 2004 No 35 s ND 1AB RD 31 Motor vehicle test period (1) (2) (3) (4) Recording details for test period To establish the value of the beneﬁt provided through a motor vehicle being made available to an employee for their private use, an employer may choose to record the details of the use of the vehicle by the employee for a test period.
Number used in calculations The number of days on which a vehicle is available for an employee’s private use that is ascertained in the test period is the number used in the calculation in section RD 29(2).

For the calculation in section RD 29(4), the relevant number is the number of days ascertained in the test period multiplied by 4.

Quarter or 3 months for test period If FBT is paid quarterly or annually, the test period is a quarter.
If FBT is paid on an income year basis, the test period is 3 consecutive months of an income year.
Period showing pattern of use The employer must— (a) choose a test period that shows, or is likely to show, a pattern of use of the motor vehicle by the employee that 2615 Part R s RD 31 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) fairly represents the use of the vehicle by the employee over the whole of the applicable term; and keep a record of the test period, including accurate de- tails of the days in the period on which the vehicle is available for the employee’s private use.
Work-related vehicles In subsection (4), a day on which the vehicle is a work-related vehicle is treated as a day on which the vehicle is not available for private use.

Term of 3 years The number of days of availability for private use ascertained in the test period applies for a term of 3 years.
The term starts, as applicable, as follows: (a) if FBT is paid quarterly, on the ﬁrst day of the test period: if FBT is paid on an annual basis, on the ﬁrst day of the tax year in which the test period occurs: if FBT is paid on an income year basis, on the ﬁrst day of the income year in which the test period occurs.
(b) (c) Reduction of term The term referred to in subsection (6) is reduced if the number of days of actual private use of the motor vehicle is 20%, or more than 20%, higher than the number ascertained in the test period.

In this case, the term ends on the last day of the applic- able quarter, year, or income year.

If the employer chooses to start another test period, the existing term ends just before the start of the new term.
When test period no longer representative If the Commissioner considers that the result ascertained in the test period does not, or does no longer, fairly represent the actual private use of the motor vehicle by the employee, the Commissioner may notify the employer that the term will end on a particular date.

Following notiﬁcation, the employer must not use that result again.
Deﬁned in this Act: Commissioner, employee, employer, FBT, income year, motor vehicle, notify, private use, quarter, tax year, work-related vehicle Compare: 2004 No 35 s ND 1B(1)–(6) (5) (6) (7) (8) 2616 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 33 RD 32 Replacement motor vehicles For the purposes of section RD 31, a replacement motor ve- hicle is treated in the same way as the vehicle it replaces if the result ascertained in the test period is likely to be fairly repre- sentative of the average availability for the private use of the vehicle during the term.
Deﬁned in this Act: motor vehicle, private use Compare: 2004 No 35 s ND 1B(7) RD 33 Subsidised transport (1) Percentage of highest public fare The value of a beneﬁt that an employer provides to their em- ployee in subsidised transport is 25% of the highest fare the employer charges the public for the equivalent transport in terms of class, extent, and occasion.

This subsection is over- ridden by subsection (2).


When beneﬁt provided under arrangement (2) Despite section CX 2(2) (Meaning of fringe beneﬁt), if the fringe beneﬁt is provided under an arrangement with a third person, the value of the beneﬁt is determined under subsection (3).
(3) Percentage or actual payment If a third person provides the employee with subsidised trans- port under an arrangement with their employer, the value of the beneﬁt is the greatest of— (a) 25% of the highest fare the employer charges the public for the equivalent transport in terms of class, extent, and occasion; and 25% of the highest fare the third person charges the pub- lic for the equivalent transport in terms of class, extent, and occasion, if the third person is a company in the same group of companies as the employer; and the amount that the employer has paid or is liable to pay the person for the beneﬁt provided.
(b) (c) 2617 Part R s RD 34 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) GST In this section, for a registered person who may claim input tax for subsidised transport, amount means the GST-inclusive amount.
Deﬁned in this Act: amount, arrangement, company, employee, employer, fringe beneﬁt, group of companies, GST, input tax, pay, subsidised transport Compare: 2004 No 35 s ND 1C RD 34 Employment-related loans: value using prescribed interest rates When this section applies This section applies when an employer provides a beneﬁt to their employee in an employment-related loan and the em- ployer does not choose to determine the value of the beneﬁt under section RD 35.
Amount of interest or amount under ﬁnancial arrangement The value of the beneﬁt in a period is the amount by which the prescribed interest on the loan is more than— (a) the amount of interest that accrued on the loan in the period; or (b) when the loan is a ﬁnancial arrangement and it is appro- priate for the nature of the loan, the income that would have accrued to the employer’s beneﬁt in the period as calculated under the yield to maturity method.
Meaning of prescribed interest For the purposes of this section, prescribed interest means,— except as provided in paragraph (b), the amount of in- (a) terest that would have accrued on the loan during the quarter or tax year had the interest been calculated on the daily balance of that loan at the prescribed rate of interest: for loans made on or before 31 March 1985, the interest on which is not subject to review, the amount of interest that would have accrued on the loan during the quarter or tax year had the interest been calculated on the daily balance of the loan at the non-concessionary rate of in- terest for— (i) the tax year in which the agreement to make the loan was signed; or (b) (1) (2) (3) 2618 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 35 (ii) if the agreement was not in writing, the year in which the loan was agreed to by all parties.
Deﬁned in this Act: amount, employee, employer, employment-related loan, ﬁnancial arrangement, income, interest, non-concessionary rate of interest, pre- scribed interest, quarter, tax year Compare: 2004 No 35 ss ND 1D, ND 1G RD 35 Employment-related loans: value using market interest rates Choosing to use market interest rate (1) An employer who is in the business of lending money to the public may choose to value a beneﬁt provided to their em- ployee in an employment-related loan using the market interest on the loan.
(2) Value of beneﬁt The value of the beneﬁt referred to in subsection (1) in a period is the amount by which the market interest on the loan is more than— (a) the amount of interest that accrued on the loan in the period; or (b) when the loan is a ﬁnancial arrangement and it is appro- priate having regard to the nature of the loan, the income that would have accrued to the employer’s beneﬁt in the period as calculated under the yield to maturity method.
Using method for 2 income years (3) Having made an election under subsection (1), the employer must use the method for the income year to which the election relates and for the next income year.

Notifying Commissioner of change to method (4) An employer may not change the method of calculating the value of the beneﬁt for an income year unless the employer notiﬁes the Commissioner of the proposed change at least 1 year before the start of the income year in which the change is to occur.
(5) Market interest In this section, market interest means the amount of interest calculated at the interest rate that would apply to a borrower belonging to a group of persons to whom a loan of the kind 2619 Part R s RD 36 Income Tax Act 2007 Reprinted as at 29 May 2012 provided to the employee is offered when the group meets the following requirements: (a) the group has a comparable credit risk to the group to which the employee belongs; and (b) membership of the group arises from a factor or factors that do not include a connection between a member and the employer; and the group is sufﬁcient in number to ensure a transaction on an arm’s-length basis.
(c) Calculating amount of interest For the purposes of subsection (5), the amount of interest is the amount accrued on the loan during the quarter or tax year calculated on the daily balance of the loan at the rate referred to in the subsection.
Deﬁned in this Act: amount, business, Commissioner, employee, employer, employment-related loan, ﬁnancial arrangement, group of persons, income, in- come year, interest, market interest, notify, quarter, tax year Compare: 2004 No 35 s ND 1DB (6) RD 36 Repayment of employment-related loans Repayment at start of tax year For the purposes of sections RD 34 and RD 35, an amount of income of an employee applied in an income year to repay an employment-related loan provided to the employee is treated as applied towards repayment on the ﬁrst day of the income year or, if the date of the advance of the loan falls after that day, the later date.
Limitation Subsection (1) applies only when an employee derives income that— (a) is salary or wages, an extra pay, a dividend, or interest; and is payable to the employee without any amount of tax withheld under the PAYE rules, the RWT rules, or the NRWT rules; and is income of the employee in the tax year in which it is applied to repay the loan, or in an earlier income year.
(b) (c) (1) (2) 2620 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 37 (3) (4) Amounts derived and applied in different tax years Subsection (4) applies when an employee derives income that— (a) (b) is applied to repay an employment-related loan; and relates to an income year after the income year in which it is applied to repay the loan.
Treatment of amount The employee may treat the amount as derived in the earlier income year, but must notify the Commissioner of their deci- sion within the time allowed to the employer for providing a return of income for the income year, or a longer time if the Commissioner allows.
Deﬁned in this Act: amount, amount of tax, Commissioner, dividend, em- ployee, employer, employment-related loan, extra pay, income, income year, interest, notify, NRWT rules, pay, PAYE rules, return of income, RWT rules, salary or wages, tax year Compare: 2004 No 35 s ND 1E Section RD 36(2)(b): substituted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 128(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section RD 36 list of deﬁned terms amount of tax: inserted (with effect on 1 April 2008), on 21 December 2010, by section 128(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 36 list of deﬁned terms non-resident passive income: amended (with effect on 1 April 2008), on 21 December 2010, by section 128(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section RD 36 list of deﬁned terms NRWT rules: inserted (with effect on 1 April 2008), on 21 December 2010, by section 128(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section RD 36 list of deﬁned terms resident passive income: amended (with effect on 1 April 2008), on 21 December 2010, by section 128(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section RD 36 list of deﬁned terms RWT rules: inserted (with effect on 1 April 2008), on 21 December 2010, by section 128(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

RD 37 Contributions to superannuation schemes (1) Amount of contribution The value of a beneﬁt that an employer provides in contribut- ing to a superannuation scheme for an employee is the amount of the contribution made by the employer.
2621 Part R s RD 38 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) GST In this section, for a registered person who may claim input tax for a contribution to a superannuation scheme, amount means the GST-inclusive amount.
Deﬁned in this Act: amount, contribution, GST, employee, employer, input tax, superannuation scheme Compare: 2004 No 35 s ND 1H RD 38 Contributions to funds, trusts, and insurance premiums (1) (2) (3) (4) Sickness, accident, or death beneﬁt fund The value of the beneﬁt that an employer provides in contribut- ing to a sickness, accident, or death beneﬁt fund for an em- ployee is the amount of the contribution made by the employer.
Funeral trust The value of the beneﬁt that an employer provides in contribut- ing to a funeral trust for an employee is the amount of the con- tribution made by the employer.

Speciﬁed insurance premium The value of the beneﬁt that an employer provides in paying an insurance premium described in section CX 16 (Contributions to life or health insurance) for an employee is the amount of the premium paid by the employer.
Insurance fund of friendly society The value of the beneﬁt that an employer provides in contribut- ing to an insurance fund of a friendly society for an employee is the amount of the contribution made by the employer.
Deﬁned in this Act: amount, contribution, employee, employer, friendly soci- ety, sickness, accident, or death beneﬁt fund, speciﬁed insurance premium Compare: 2004 No 35 s ND 1I RD 39 Beneﬁts provided by charitable organisations Value of beneﬁt The value of a beneﬁt under section CX 25(2) (Beneﬁts pro- vided by charitable organisations) that a charitable organisa- tion provides in a short-term charge facility is the sum of— (a) the amount that the organisation pays for or towards buying or hiring the goods and services obtained by the employee under the short-term charge facility: (1) 2622 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 39 (b) (c) any interest incurred in relation to buying or hiring the goods and services: when the short-term charge facility is a credit card or charge card provided for an employee’s use solely for purposes unconnected with the organisation or its oper- ations, the associated account or service fee.
(2) (3) (4) When subsections (3) and (4) apply Subsections (3) and (4) apply in a tax year to an employer that is a charitable organisation when— (a) the employer provides a beneﬁt to their employee in a short-term charge facility that is a fringe beneﬁt under section CX 25(1); and the employer is required to pay FBT for the tax year on a quarterly basis; and the value of the beneﬁt in the short-term charge facility in the ﬁrst quarter of the tax year is no more than 5% of the employee’s salary or wages for the tax year.
(b) (c) Employer’s liability The employer’s liability to pay FBT on a beneﬁt provided in a quarter of the tax year depends on whether the taxable value of all the beneﬁts (the accumulated value) that the employer provides to the employee in the period from the start of the tax year to the end of the quarter is more than 5% of the em- ployee’s salary or wages for the tax year (the threshold value).
Calculation of liability The employer is liable to pay FBT for a quarter of a tax year on the following amounts: (a) zero, if the accumulated value for the quarter is no more than the threshold value: the accumulated value if the quarter is the ﬁrst in the tax year for which the accumulated value is more than the threshold value: the taxable value of all the beneﬁts provided in the quar- ter, if neither paragraph (a) or (b) applies.
(b) (c) Deﬁned in this Act: amount, charitable organisation, employee, employer, FBT, fringe beneﬁt, interest, quarter, salary or wages, short-term charge facility, tax year Compare: 2004 No 35 ss ND 1IB, ND 8B 2623 Part R s RD 40 Income Tax Act 2007 Reprinted as at 29 May 2012 RD 40 Goods (1) Market value or cost The value of a fringe beneﬁt that an employer provides to an employee in goods is determined as follows: (a) when the person providing the goods manufactured, produced, or processed them, their market value: (b) when the person providing the goods bought them, or paid for them to be bought, dealing at arm’s length with the supplier of the goods, the cost of the goods to the person: if the person providing the goods is a company included in a group of companies, then, as the person chooses, the value of the beneﬁt under either paragraph (a) or (b), applying the provisions as if the group of companies were 1 company.
(c) Sale in open market (2) Despite subsection (1), if the value of the fringe beneﬁt as de- termined under that subsection would be more than the amount that would have been paid to the employer for the purchase of the goods in a sale described in paragraphs (a) to (d), then the value is treated as that amount.
The sale must be— (a) (b) (c) made on ordinary trade terms; and (d) at retail in the open market in New Zealand; and freely offered; and to a member of the public with whom the employer is at arm’s length.
Some deﬁnitions In this section,— cost, for a registered person who may claim input tax for the goods, means the GST-inclusive cost of the goods bought or the amount that the person paid for the goods market value means the lowest price, at the time at which the goods were provided to the employee, for which identical goods were sold by the same person to an arm’s length buyer, whether wholesaler, retailer, or the public, in the open market in New Zealand in a sale freely offered and made on ordinary trade terms (3) 2624 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 41 price, for a registered person who may claim input tax for goods that they manufacture, produce, or process, means the GST-inclusive price of those goods to that person.
Deﬁned in this Act: amount, company, cost, employee, employer, group of companies, GST, identical goods, input tax, market value, New Zealand, pay, price, registered person Compare: 2004 No 35 s ND 1J RD 41 Services (1) (2) (3) Price, amount paid, or fee The value of a fringe beneﬁt that an employer provides to an employee in services is,— (a) when an employer normally provides the services as part of their business, the price charged by the em- ployer— (i) (ii) at the time they provided the services; and for the same or similar services to the public in the open market in New Zealand; and on ordinary trade or professional terms between buyers and sellers independent of each other: (iii) (c) (b) when an employer pays for the services to be provided, dealing at arm’s length with the supplier of the services, the amount paid or payable: if neither paragraph (a) nor (b) applies, the price or fee that the employer or supplier providing the services would at that time have charged the public, had they provided the same or similar services to the public in the open market in New Zealand on ordinary trade or professional terms.
Exclusions This section does not apply to a service that consists of making available a motor vehicle for private use, providing an employ- ment-related loan, or providing subsidised transport.
Services provided to group of employees For the purposes of this section, a person who provides ser- vices to an employee belonging to a group of employees is treated as providing the same or similar services to the pub- lic in the open market in New Zealand on ordinary trade or 2625 Part R s RD 42 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) professional terms if the person provides the same or similar services to a group of persons that— (a) (b) negotiates the transaction on an arm’s-length basis; and is comparable in number to the group of employees.
Some deﬁnitions In this section,— amount, for a registered person who may claim input tax for that service, means the GST-inclusive amount fee and price, for a registered person who may claim input tax for that service, means the GST-inclusive fee or price.
Deﬁned in this Act: amount, business, employee, employer, employment-re- lated loan, fee, fringe beneﬁt, GST, input tax, motor vehicle, New Zealand, pay, price, private use, registered person, subsidised transport Compare: 2004 No 35 s ND 1K RD 42 Goods at staff discount Goods discounted for employees This section applies when an employer sells goods in the nor- mal course of their business to an employee when all the fol- lowing apply: (a) the retail price of identical goods is $200 or less to an arm’s length buyer in the open market in New Zealand in a sale freely offered and made on ordinary trade terms; and the price of the goods to the employee is lower than their cost to the employer, the difference resulting from a staff discount that the employer normally provides to employees; and at the time of the sale, the staff discount is no more than 5% of the price of identical goods in the circumstances referred to in paragraph (a).
(b) (c) Cost of goods The goods are treated as having been sold at a price equal to the cost of the goods to the employer.
Deﬁned in this Act: business, cost, employee, employer, identical goods, New Zealand, price Compare: 2004 No 35 s ND 1N (1) (2) 2626 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 44 RD 43 Goods on special with staff discount (1) Sale of identical goods This section applies when an employer sells goods to an em- ployee on a day when the employer is offering identical goods for sale in the normal course of their business at a special price and when all the following apply: (a) the price of the identical goods is $200 or less to an arm’s length buyer in the open market in New Zealand in a sale freely offered and made on ordinary trade terms; and the price of the goods to the employee is lower than their cost to the employer, the difference resulting from a staff discount that the employer offers to the employee in addition to any other discount; and just before or after the sale to the employee, a reasonable quantity of the identical goods is available in the open market in New Zealand; and the price is at least 95% of the cost of the goods to the employer, or at least 95% of the price on the day of the sale of the identical goods to the public in the open market in New Zealand, whichever is less.
(b) (c) (d) (2) Cost of goods The goods are treated as having been sold at a price equal to the cost of the goods to the employer.
Deﬁned in this Act: business, cost, employee, employer, identical goods, New Zealand, price Compare: 2004 No 35 s ND 1O RD 44 Goods sold by group companies For the purposes of sections RD 42 and RD 43, if a company that is included in a group of companies sells goods to an em- ployee of another company in the group, the sale is treated as if it were made directly from employer to employee.
Deﬁned in this Act: company, employee, employer, group of companies Compare: 2004 No 35 s ND 1P(2) 2627 Part R s RD 45 Income Tax Act 2007 Reprinted as at 29 May 2012 RD 45 Unclassiﬁed beneﬁts Liability limited (1) An employer is liable to pay FBT on an unclassiﬁed beneﬁt only within the limits described in this section.
Quarterly payment (2) When FBT is paid quarterly, an employer is liable for FBT on an unclassiﬁed beneﬁt provided to an employee in a quarter only if— (a) the total taxable value of all unclassiﬁed beneﬁts pro- vided in the quarter by the employer to the employee is more than $300; or the total taxable value of all unclassiﬁed beneﬁts pro- vided in the last 4 quarters including the current quar- ter by the employer to all employees of the employer, whether accounted for on a quarterly or an income year basis, is more than $22,500.
(b) Yearly payment (3) When FBT is paid on either an annual basis or an income year basis, except when subsection (4) applies, an employer is li- able for FBT on unclassiﬁed beneﬁts provided to an employee in the tax year or income year only if— (a) the total taxable value of all unclassiﬁed beneﬁts pro- vided in the tax year or income year by the employer to the employee is more than $1,200; or the total taxable value of all unclassiﬁed beneﬁts pro- vided in the tax year or income year by the employer to all employees of the employer is more than $22,500.
(b) Period longer or shorter than income year (4) When an employer accounts for FBT on an income year basis, and the period for which they have accounted under section RD 60 differs from an income year for the reasons described in subsection (5), an employer is liable for FBT on unclassiﬁed beneﬁts provided in the period only if— (a) the total taxable value of all unclassiﬁed beneﬁts pro- vided in the period by the employer to an employee is more than the ﬁgure that is the same fraction or multiple of $1,200 as the number of days in the period is a frac- tion or multiple of 365; or 2628 Reprinted as at 29 May 2012 (b) Income Tax Act 2007 Part R s RD 46 the total taxable value of all unclassiﬁed beneﬁts pro- vided in the period by the employer to all employees of the employer is more than the ﬁgure that is the same fraction or multiple of $22,500 as the number of days in the period is a fraction or multiple of 365.
(5) (6) Reasons for difference In subsection (4), the income year for which the employer has accounted may be longer or shorter than the normal income year because the employer has either— (a) (b) started or ceased business during that income year; or chosen, with the agreement of the Commissioner, to ﬁle a return under this subpart for the income year ending with the date of the annual balance of their accounts.
Employer and associated persons In this section, employer includes a person associated with them at any time in the relevant period.

Deﬁned in this Act: associated person, balance date, business, Commissioner, employee, employer, FBT, income year, pay, quarter, return of income, tax year, unclassiﬁed beneﬁt Compare: 2004 No 35 s ND 1Q Section RD 45(2)(a): amended, on 1 April 2009, by section 16(a) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).
Section RD 45(2)(b): amended, on 1 April 2009, by section 16(b) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 45(3)(a): amended, on 1 April 2009, by section 16(c) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 45(3)(b): amended, on 1 April 2009, by section 16(d) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).
Section RD 45(4)(a): amended, on 1 April 2009, by section 16(e) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 45(4)(b): amended, on 1 April 2009, by section 16(f) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

RD 46 Adjustments for unclassiﬁed beneﬁts on amalgamation (1) When employer ceases to exist This section applies when a company that is an employer ends its existence on amalgamation or when a new company is es- tablished on amalgamation.
An adjustment is allowed for un- classiﬁed beneﬁts in the period in which the amalgamation oc- curs.

2629 Part R s RD 46 Income Tax Act 2007 Reprinted as at 29 May 2012 Quarterly payment If the amalgamating company pays FBT quarterly, an adjust- ment must be made in the quarter in which the amalgamation occurs reducing the ﬁgure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula— $22,500 × number of days in the quarter after amalgamation days in the quarter.
Adjustment in quarter of amalgamation If the amalgamated company pays FBT quarterly, and the amalgamated company is a new company established on amalgamation, an adjustment must be made in the quarter in which the amalgamation occurs reducing the ﬁgure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula— $22,500 × number of days in the quarter before amalgamation days in the quarter.
Annual payment If the amalgamating company pays FBT annually, an adjust- ment must be made for the year in which the amalgamation occurs reducing the ﬁgure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula— $22,500 × number of days in the year after amalgamation 365.
Adjustment in year of amalgamation If the amalgamated company pays FBT annually, and the amalgamated company is a new company established on amalgamation, an adjustment must be made for the year in which the amalgamation occurs reducing the ﬁgure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula— (2) (3) (4) (5) 2630 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 47 $22,500 × number of days in the year before amalgamation 365.
Deﬁned in this Act: amount, amalgamated company, amalgamating company, amalgamation, company, employer, FBT, pay, quarter, unclassiﬁed beneﬁt, year Compare: 2004 No 35 s ND 1R Section RD 46(2): amended, on 1 April 2009, by section 17(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 46(2) formula: amended, on 1 April 2009, by section 17(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
Section RD 46(3): amended, on 1 April 2009, by section 17(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 46(3) formula: amended, on 1 April 2009, by section 17(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 46(4): amended, on 1 April 2009, by section 17(c) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 46(4) formula: amended, on 1 April 2009, by section 17(c) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
Section RD 46(5): amended, on 1 April 2009, by section 17(d) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 46(5) formula: amended, on 1 April 2009, by section 17(d) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
Attributing fringe beneﬁts to employees RD 47 Attribution of certain fringe beneﬁts (1) (b) What this section applies to This section applies when an employer provides a fringe bene- ﬁt by— (a) making available a motor vehicle for an employee’s pri- vate use under section CX 6 (Private use of motor ve- hicle): providing an employment-related loan to an employee under section CX 10 (Employment-related loans) but not a loan by a life insurer under section CX 11 (Em- ployment-related loans: loans by life insurers): providing to an employee a beneﬁt with a taxable value of $1,000 or more in a year for each of the following categories: (i) subsidised transport under section CX 9 (Sub- sidised transport): (c) 2631 Part R s RD 48 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) (iii) (iv) (v) a contribution to a superannuation scheme under section CX 13 (Contributions to superannuation schemes): a contribution to a sickness, accident, or death beneﬁt fund under section CX 14 (Contributions to sickness, accident, or death beneﬁt funds): a contribution to a funeral trust under section CX 15 (Contributions to funeral trusts): the payment of a speciﬁed insurance premium or a contribution to an insurance fund of a friendly society under section CX 16 (Contributions to life or health insurance): (2) (d) providing unclassiﬁed beneﬁts to an employee under section CX 2(1)(b)(ii) (Meaning of fringe beneﬁt) with a total taxable value of $2,000 or more in a year.
Attributing fringe beneﬁt to employee The employer must attribute the fringe beneﬁt to the employee, calculating the FBT liability under section RD 50.
Deﬁned in this Act: employee, employer, employment-related loan, FBT, friendly society, fringe beneﬁt, life insurer, loan, motor vehicle, pay, private use, sickness, accident, or death beneﬁt fund, speciﬁed insurance premium, subsidised transport, superannuation scheme, unclassiﬁed beneﬁt Compare: 2004 No 35 s ND 3(1), (1A) RD 48 When attributed beneﬁts provided to more than 1 employee If an employer provides a fringe beneﬁt to which section RD 47 applies to more than 1 employee, the employer must attribute the beneﬁt to the employee who mainly uses or receives it in a quarter or income year, as applicable.
If the employer cannot determine which employee mainly uses or receives the beneﬁt, they must pool the beneﬁt under section RD 53.
Deﬁned in this Act: contribution, employee, employer, fringe beneﬁt, income year, quarter Compare: 2004 No 35 s ND 3(2) 2632 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 50 RD 49 Application of thresholds to attributed beneﬁts (1) (2) When this section applies This section applies when the value of a fringe beneﬁt de- scribed in section RD 47 is above or below the threshold re- ferred to in that section.
Below threshold If the taxable value of a beneﬁt under section RD 47(1)(c) and (d) is under the relevant threshold, the employer must either— attribute all fringe beneﬁts with an annual taxable value (a) under the relevant threshold that fall within the particu- lar category; or pool the value of the beneﬁt under section RD 53.
(b) Exception for subsidised transport (3) Despite section RD 47(1)(c)(i), if the employer provides sub- sidised transport under section CX 9 (Subsidised transport) with a taxable value over the threshold, they may pool the value of the beneﬁt under section RD 53 if all their employees have the same or a similar entitlement to the fringe beneﬁt.
(4) Amending thresholds The Governor-General by Order in Council may determine the amount of the thresholds referred to in section RD 47, setting out the ﬁrst tax year in which the threshold is to apply.
Deﬁned in this Act: amount, employee, employer, fringe beneﬁt, subsidised transport, tax year Compare: 2004 No 35 ss ND 3(4)–(7), ND 4, ND 16 RD 50 Employer’s liability for attributed beneﬁts (1) (2) When this section applies This section applies when an employer is required to attribute the value of a fringe beneﬁt to an employee under sections RD 47 and RD 49.
Tax liability The employer’s FBT liability in relation to the employee is the amount calculated using the formula— tax on all-inclusive pay – tax on cash pay.
Deﬁnition of items in formula In the formula,— (3) 2633 Part R s RD 50 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) tax on all-inclusive pay is the amount determined at the rate set out in schedule 1, part C, table 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) on the amount of the employee’s all-inclusive pay calculated using the formula in section RD 51(2): tax on cash pay is the amount calculated under section RD 51(3)(b) or (4)(b).
Exception for shareholder-employees and persons with attributed income If the employer has an exception for an employee under sec- tion RD 52 in a tax year, and the employer pays FBT at the rate of 42.86% of the taxable value of the attributed fringe bene- ﬁts under section RD 52(3)(a), the employer must deduct the FBT payable in the tax year from the result of the formula in subsection (2).
Further option Instead of calculating FBT under subsections (2) and (4), an employer may choose to pay FBT at the rate of 49.25% on the taxable value of the attributed fringe beneﬁts.

Deﬁned in this Act: amount, employee, employer, FBT, fringe beneﬁt, pay, tax year Compare: 2004 No 35 s ND 5(3)–(6) Section RD 50(3)(a): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RD 50(4): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 64(2)(a) of the Taxation (Budget Meas- ures) Act 2010 (2010 No 27).

Section RD 50(4): amended (with effect on 1 April 2010), on 28 May 2010 (ap- plying for the 2010–11 income year and later income years), by section 64(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 50(5): amended, on 1 April 2011 (applying for the 2011–12 in- come year and later income years), by section 64(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 50(5): amended (with effect on 1 April 2010), on 28 May 2010 (ap- plying for the 2010–11 income year and later income years), by section 64(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 50(5): amended, on 1 April 2009, by section 29(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

(4) (5) 2634 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 51 RD 51 Calculation of all-inclusive pay (1) (2) (3) When this section applies This section applies to determine the amount of an employee’s all-inclusive pay for the purposes of section RD 50.
Calculation The amount of an employee’s all-inclusive pay is calculated using the formula— cash pay – tax on cash pay + taxable value of all fringe beneﬁts.
Deﬁnition of items in formula for major shareholder If the employee is a major shareholder, the items in the formula are— (a) cash pay is the cash pay of the employee for the income year in which the fringe beneﬁt is attributed that is paid to the employee by the employer or a related employer, and includes— (i) a dividend and interest derived by the employee from their employer; and a dividend and interest derived by the employee from a related employer: (ii) (b) (c) tax on cash pay is the tax on the cash pay of the em- ployee calculated using the basic rate of income tax set out in schedule 1, part A, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts),— (i) treating the cash pay as if it were the only taxable income of the employee: [Repealed] (ii) taxable value of all fringe beneﬁts is— (i) the taxable value of all fringe beneﬁts attributed to the employee in the tax year; and the taxable value of all fringe beneﬁts attributed to a person associated with the employee in the income year if the person does not receive the fringe beneﬁts as an employee of the employer.
(ii) 2635 Part R s RD 51 Income Tax Act 2007 Reprinted as at 29 May 2012 Deﬁnition of items in formula for person who is not major shareholder If the employee is not a major shareholder, the items in the formula are— (a) cash pay is the cash pay of the employee for the tax year in which the fringe beneﬁt is attributed that is paid to the employee by the employer or a related employer: tax on cash pay is the tax on the cash pay of the em- ployee calculated using the basic rate of income tax set out in schedule 1, part A, clause 1,— (i) treating the cash pay as if it were the only taxable income of the employee: [Repealed] (ii) taxable value of all fringe beneﬁts is the taxable value of all fringe beneﬁts attributed to the employee in the tax year.
(b) (c) Timing of amounts In this section, the cash pay of a shareholder-employee who derives an amount of pay referred to in paragraph (b) or (c) of the deﬁnition of pay in subsection (6) is treated as derived in the income year following the income year in which it was received or attributed.
Some deﬁnitions In this section,— pay means— (a) (b) (c) salary or wages; and income to which section RD 3(2) to (4) applies; and an amount attributed under section GB 29 (Attribution rule: calculation); and an extra pay; and a schedular payment (d) (e) related employer means a branch or division of an employer, or a person associated with the employer.
Deﬁned in this Act: amount, associated person, dividend, employee, employer, extra pay, FBT, fringe beneﬁt, income, income tax, income year, interest, major shareholder, pay, related employer, resident in New Zealand, salary or wages, schedular payment, shareholder-employee, tax, tax credit, tax year, taxable in- come Compare: 2004 No 35 ss ND 5(1), (2), ND 7, ND 7A (4) (5) (6) 2636 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 52 Section RD 51(3)(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 515 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 51(3)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RD 51(3)(b)(i): amended (with effect from 1 April 2008), on 29 May 2008, by section 43(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RD 51(3)(b)(ii): repealed, on 1 April 2008, by section 43(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section RD 51(4)(b)(i): amended (with effect from 1 April 2008), on 29 May 2008, by section 43(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RD 51(4)(b)(ii): repealed, on 1 April 2008, by section 43(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
RD 52 Calculation for certain employees when information lacking (1) (2) (3) When this section applies This section applies in relation to the following persons when an employer does not have sufﬁcient information to complete a calculation under section RD 50 or RD 51: (a) a shareholder-employee who derives salary or wages, or income to which section RD 3(2) to (4) applies; or an employee receiving attributed income under section GB 29 (Attribution rule: calculation) from a company or trust that is their employer.
(b) Calculations under sections RD 50 and RD 51 not required Sections RD 50 and RD 51 do not apply in the tax year or income year, as applicable, in which the employer is required to attribute a fringe beneﬁt to the employee.
Alternative rates The employer must either— (a) pay FBT at the rate of 42.86% of the taxable value of the fringe beneﬁts attributed for the tax year, and apply sections RD 50 and RD 51 to the beneﬁts in the next tax year; or 2637 Part R s RD 53 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) pay FBT at the rate of 49.25% of the taxable value of the fringe beneﬁts attributed for the tax year.
Deﬁned in this Act: company, employee, employer, FBT, fringe beneﬁt, in- come, income year, pay, salary or wages, shareholder-employee, tax year Compare: 2004 No 35 s ND 5A Section RD 52(3)(a): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 65(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 52(3)(a): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 65(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 52(3)(b): amended, on 1 April 2011 (applying for the 2011–12 in- come year and later income years), by section 65(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 52(3)(b): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 65(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 52(3)(b): amended, on 1 April 2009, by section 30(1) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).
RD 53 Pooling non-attributed beneﬁts When this section applies This section applies in a tax year when an employer provides a fringe beneﬁt that is— (a) (b) a beneﬁt provided to a former employee; or an employment-related loan provided by a life insurer under section CX 11 (Employment-related loans: loans by life insurers); or a beneﬁt to which section RD 48 applies that cannot be attributed to a particular employee; or an attributed beneﬁt to which section RD 49(2) applies; or subsidised transport to which section RD 49(3) applies.
(c) (d) (e) Pooling value The employer must pool the value of the beneﬁts.
Final quarter pooling For the ﬁnal quarter of the tax year, the employer must create 2 pools, 1 for each of the following groups of persons: (a) the ﬁrst pool is for an employee who is a major share- holder, or a person associated with an employee who (1) (2) (3) 2638 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 54 (4) is a major shareholder (unless that person receives the fringe beneﬁt as an employee of the employer): the second pool is for all other employees.
(b) Final quarter calculation The employer must calculate FBT for the ﬁnal quarter of the tax year on the annual taxable value of the pooled fringe bene- ﬁts— (a) (b) Deﬁned in this Act: associated person, employee, employer, employment-re- lated loan, FBT, fringe beneﬁt, group of persons, life insurer, major shareholder, quarter, subsidised transport, tax year Compare: 2004 No 35 s ND 6 at the rate of 49.25% for the ﬁrst pool; and at the rate of 42.86% for the second pool.
Section RD 53(4)(a): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 66(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 53(4)(a): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 66(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 53(4)(a): amended, on 1 April 2009, by section 31(1) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 53(4)(b): amended, on 1 April 2011 (applying for the 2011–12 in- come year and later income years), by section 66(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 53(4)(b): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 66(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Taxable value of fringe beneﬁts RD 54 Value of and payments towards fringe beneﬁts (1) (2) (3) Value of beneﬁt The taxable value of a fringe beneﬁt is the value of the beneﬁt.

Subsection (2) overrides this subsection.


Reduction for payment by employee If an employee pays an amount for receiving a fringe beneﬁt, the value of the beneﬁt is reduced by the amount paid.

When associate pays amount If section GB 32 (Beneﬁts provided to employee’s associates) applies, the value of the beneﬁt is reduced when a person as- sociated with the employee pays an amount for the beneﬁt.
2639 Part R s RD 55 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Exclusions This section does not apply to— (a) (b) an employment-related loan: a payment to acquire or improve an asset if receiving or using the asset does not constitute a fringe beneﬁt.
Deﬁned in this Act: amount, associated person, employee, employment-related loan, fringe beneﬁt, pay Compare: 2004 No 35 ss GC 15(3), (4), ND 1S Section RD 54 compare note: amended (with effect on 1 April 2008), on 6 Octo- ber 2009, by section 516 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 55 Private use of motor vehicle: taxable value in cases of part ownership If a fringe beneﬁt is provided by making available a motor ve- hicle to an employee for their private use, and the vehicle is owned in part by the employee (or, if section GB 32 (Beneﬁts provided to employee’s associates) applies, a person associ- ated with the employee), the taxable value of the fringe beneﬁt is determined under section RD 56 or RD 57.
Deﬁned in this Act: associated person, employee, fringe beneﬁt, motor vehicle, private use Compare: 2004 No 35 s ND 1T RD 56 Private use of motor vehicle: when schedular value not used When this section applies This section applies when the employer has not valued the motor vehicle using schedule 5, clause 9 (Fringe beneﬁt values for motor vehicles).
Reduction In the calculation of the taxable value of the fringe beneﬁt, the value of the beneﬁt determined under sections RD 28 to RD 30 is reduced by an amount that is the applicable percentage of the cost (determined including GST under schedule 5, clause 8(a)) of the motor vehicle to the employee or the associated person as follows: (a) if FBT is paid quarterly, 2.5%: (1) (2) 2640 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 56 (3) (4) (5) (b) (c) if FBT is paid on an annual basis, 2.5% for each quarter in which the vehicle was part-owned by the employee or the associated person: if FBT is paid on an income year basis, 10%.
When period longer or shorter than income year In subsection (2)(c) and section RD 57(2)(c) and (3), if the period for which the employer accounts for FBT differs from a normal income year for the reasons described in subsection (4), the amount by which the taxable value of the fringe bene- ﬁt is reduced is a percentage of the cost (determined including GST under schedule 5, clause 8(a)) of the motor vehicle to the employer or the associated person equal to the amount calcu- lated using the formula— 10% × number of days in period 365.
Reasons for difference The period for which the employer has accounted may be longer or shorter than the normal income year because the em- ployer has either— (a) (b) started or ceased business during that income year; or chosen, with the agreement of the Commissioner, to provide a fringe beneﬁt return for the income year end- ing with the date of the annual balance of their accounts.
When vehicle owned less than whole year If an employee has not been part-owner of the motor vehicle for the whole of the income year, or the period referred to in subsection (4), a reduction under this section is reduced by the proportion of the number of days of the income year or period for which the employee was not a part-owner to the total number of days of that income year or period.
Deﬁned in this Act: amount, associated person, business, Commissioner, em- ployee, employer, FBT, fringe beneﬁt, GST, income year, motor vehicle, pay, quarter Compare: 2004 No 35 s ND 1U Section RD 56(1): amended, on 1 April 2008, by section 540(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RD 56(2): amended, on 1 April 2008, by section 540(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
2641 Part R s RD 57 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 56(3): amended, on 1 April 2008, by section 540(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

RD 57 Private use of motor vehicle: when schedular value used When this section applies This section applies when an employer has valued the motor vehicle using schedule 5, clause 9 (Fringe beneﬁt values for motor vehicles).
Reduction In the calculation of the taxable value of the fringe beneﬁt, the value of the beneﬁt determined under sections RD 28 to RD 30 is reduced by an amount that is the applicable percentage of the cost, determined excluding GST, under schedule 5, clause 6(a) in the following way: (a) when FBT is paid quarterly, by a percentage calculated using the formula— 2.5 + (2.5 × schedule 5 rate): (b) when FBT is paid on an annual basis, by a percentage for each quarter in which the vehicle was part-owned by the employee or associated person calculated using the formula— (c) 2.5 + (2.5 × schedule 5 rate): when FBT is paid on an income year basis, by a per- centage calculated using the formula— 10 + (10 × schedule 5 rate).
Schedule 5 rate In the formulas, schedule 5 rate is the rate of GST speciﬁed in schedule 5, clause 6(b), (c), (d), or (e) for the employer and the relevant quarter and relevant income year, as applicable.

Deﬁned in this Act: amount, associated person, employee, employer, FBT, fringe beneﬁt, GST, income year, motor vehicle, pay, quarter Compare: 2004 No 35 s ND 1V Section RD 57(1): amended, on 1 April 2008, by section 541 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
(1) (2) (3) 2642 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 59 Options for payment of FBT RD 58 Single rate option Rate for all quarters (1) An employer who chooses to pay their FBT liability under the single rate option must pay FBT at the rate of 49.25% of the taxable value of a fringe beneﬁt for each of the 4 quarters of a tax year.
Replacing ﬁnal quarter calculation (2) Despite subsection (1), an employer may ask the Commis- sioner to replace the FBT liability determined for the ﬁnal quarter under this section with an amount calculated under sec- tion RD 59(4).

The employer must provide the information necessary for the calculation.
Deﬁned in this Act: amount, Commissioner, employer, FBT, fringe beneﬁt, pay, quarter, tax year Compare: 2004 No 35 ss ND 1(2)(b), (4), ND 2(2) Section RD 58(1): substituted, on 1 April 2011 (applying for the 2011–12 in- come year and later income years), by section 67(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

RD 59 Alternate rate option (1) (2) (3) (4) Election This section applies when an employer chooses to pay their FBT liability under the alternate rate option.
First three quarters The employer may pay FBT for any or all of the ﬁrst 3 quarters of a tax year at 43% of the taxable value of a fringe beneﬁt.

Alternate rate The employer must pay FBT at the rate of 49.25% of the tax- able value of a fringe beneﬁt for any of the ﬁrst 3 quarters of a tax year for which they do not pay at the rate of 43% under subsection (2).
Final quarter For the ﬁnal quarter of the tax year, the employer must calcu- late the total pay of each employee under sections RD 50 and RD 53 for the tax year and subtract the amount of FBT payable for the previous 3 quarters of the tax year.

2643 Part R s RD 60 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) Decision irrevocable The decision to use the alternate rate option cannot be changed after the return is ﬁled.
Deﬁned in this Act: amount, employee, employer, FBT, fringe beneﬁt, pay, quarter, tax year Compare: 2004 No 35 ss ND 1(2)(a), ND 2(1)–(4), ND 10(1) Section RD 59(2): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 68(2)(a) of the Taxation (Budget Meas- ures) Act 2010 (2010 No 27).
Section RD 59(2): amended (with effect on 1 April 2010), on 28 May 2010 (ap- plying for the 2010–11 income year and later income years), by section 68(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 59(3): substituted, on 1 April 2011 (applying for the 2011–12 in- come year and later income years), by section 68(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
RD 60 Close company option When this section applies This section applies in an income year when an employer that is a close company provides a fringe beneﬁt to a shareholder- employee if, in the preceding income year,— (a) the gross amounts of tax for both PAYE income pay- ments and employer’s superannuation cash contribu- tions withheld under section RA 5(1)(a) and (c) (Tax obligations for employment-related taxes) for the tax year were no more than $500,000; or the only beneﬁt provided by the employer was a fringe beneﬁt— (i) arising under section CX 6(1) (Private use of motor vehicle); and limited to making available to shareholder-em- ployees 1 vehicle or 2 vehicles for their private use; or (ii) (b) (c) the employer did not employ any employees.
Income year basis The employer may choose to pay their FBT liability on an in- come year basis, informing the Commissioner of their decision in writing or by telephone no later than— (a) the last day of the ﬁrst quarter of the relevant income year; or (1) (2) 2644 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 60 (b) the last day of the quarter in which the employer ﬁrst starts employing employees, if subsection (1)(c) ap- plies.
(3) Rate or calculation The employer must pay FBT on the taxable value of fringe beneﬁts in the income year in which they make their election and in later income years either— (a) at the rate of 49.25% of the taxable value of a fringe beneﬁt; or by calculating for the relevant income year the total pay of each employee under sections RD 50 and RD 53.
(b) Replacing rate with calculated liability (4) Despite subsection (3), the employer may ask the Commis- sioner to replace the FBT liability determined under subsec- tion (3)(a) with a calculation under subsection (3)(b).

The em- ployer must provide the information necessary for the calcu- lation.
(5) (6) Part-periods If an income year for which an employer chooses to pay FBT on an income year basis does not start on the same day as the ﬁrst day of a quarter, the employer must treat the period between the ﬁrst day of the quarter in which the ﬁrst day of the income year falls and the ﬁrst day of the income year as if it were a quarter.
More than 1 business If an employer ceases business and starts a new business, or operates 2 or more businesses at the same time, the total of all amounts of tax withheld under section RA 5(1)(a) and (c) must be aggregated.
Deﬁned in this Act: amount of tax, business, close company, Commissioner, employee, employer, employer’s superannuation cash contribution, FBT, fringe beneﬁt, gross, income year, pay, PAYE income payment, quarter, shareholder- employee, tax year Compare: 2004 No 35 ss ND 1(2)(c), (5), ND 14, ND 15(7), (8) Section RD 60(1): substituted, on 1 April 2009, by section 18(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
Section RD 60(1)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 517(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2645 Part R s RD 61 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 60(1)(a): amended (with effect on 1 April 2009), on 6 October 2009, by section 517(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 60(2)(b): amended, on 1 April 2009, by section 18(2) of the Taxa- tion (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 60(3)(a): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 69(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section RD 60(3)(a): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 69(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 60(3)(a): amended, on 1 April 2009, by section 8(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 60(6): amended (with effect on 1 April 2008), on 6 October 2009, by section 517(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 60 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 517(4)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 60 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 517(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 61 Small business option When this section applies This section applies when an employer provides a fringe bene- ﬁt to an employee who is not a shareholder-employee in a tax year if, for the preceding tax year,— (a) the gross amounts of tax for both PAYE income pay- ments and employer’s superannuation cash contribu- tions withheld under section RA 5(1)(a) and (c) (Tax obligations for employment-related taxes) for the tax year were no more than $500,000; or the employer did not employ any employees.
(b) Annual basis The employer may choose to pay their FBT liability on an annual basis, informing the Commissioner of their decision in writing or by telephone no later than— (a) 30 June in the relevant tax year; or (1) (2) 2646 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 61 (b) the last day of the quarter in which the employer ﬁrst starts employing employees, if subsection (1)(b) ap- plies.
(3) Rate or calculation The employer must pay FBT on the taxable value of fringe beneﬁts in the tax year in which they make their election and in later tax years either— (a) at the rate of 49.25% of the taxable value of a fringe beneﬁt; or by calculating for the relevant tax year the total pay of each employee under sections RD 50 and RD 53.
(b) Replacing rate with calculated amount (4) Despite subsection (3), the employer may ask the Commis- sioner to replace the FBT liability determined under subsec- tion (3)(a) with a calculation under subsection (3)(b).

The em- ployer must provide the information necessary for the calcu- lation.

(5) (6) Quarters in year For the purposes of subsection (3), the tax year is treated as if it were 4 consecutive quarters.
More than 1 business If an employer ceases business and starts a new business, or operates 2 or more businesses at the same time, the total of all amounts of tax withheld under section RA 5(1)(a) and (c) must be aggregated.
Deﬁned in this Act: amount of tax, business, Commissioner, employee, em- ployer, employer’s superannuation cash contribution, employer’s superannu- ation contribution, FBT, fringe beneﬁt, gross, pay, PAYE income payment, quarter, shareholder-employee, tax year Compare: 2004 No 35 ss ND 1(2)(c), (4), (5), ND 13 Section RD 61(1)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 518(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 61(1)(a): amended (with effect on 1 April 2009), on 6 October 2009, by section 518(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 61(1)(a): amended, on 1 April 2009, by section 19 of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

Section RD 61(3)(a): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 70(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
2647 Part R s RD 62 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 61(3)(a): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 70(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section RD 61(3)(a): amended, on 1 April 2009, by section 9(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 61(6): amended (with effect on 1 April 2008), on 6 October 2009, by section 518(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 61 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 518(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 62 Changes in payment periods No changes for simple or alternate rate options (1) An employer’s decision to pay FBT on a quarterly basis under the single rate option or the alternate rate option cannot be changed.
(2) When requirements for yearly basis no longer met If an employer who has chosen for a tax year to pay FBT on an income year basis or on an annual basis no longer meets the relevant requirements of section RD 60(1) or RD 61(1), the employer must pay their FBT liability for fringe beneﬁts provided to employees on or after the ﬁrst day of the tax year under the single rate option or the alternate rate option.
Choosing to change to quarterly basis (3) An employer who has chosen for a tax year to pay FBT on an income year basis or on an annual basis, may choose at any time to pay FBT on a quarterly basis.
When change takes effect (4) An employer who chooses to change their payment period under subsection (3) must pay their FBT liability on a quar- terly basis for a fringe beneﬁt provided from— (a) the ﬁrst day of the next tax year, if the employer previ- ously paid on an annual basis; or the ﬁrst day of the next income year of the employer, if the employer previously paid on an income year basis; or another date agreed by the employer and the Commis- sioner.
(b) (c) 2648 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 63 (5) (6) Choosing to change to income year basis If an employer who is eligible to use the close company op- tion has been paying FBT on a quarterly basis, and chooses to change to payment on an income year basis, a calculation must be made under section RD 59 for the period— (a) beginning immediately after the end of the last full tax year for which the employer pays FBT on a quarterly basis: ending immediately before the start of the ﬁrst income year for which the election applies.
(b) Part-periods If an employer changes their payment period from an income year to a quarter, and the day referred to in subsection (4)(b) is not the same day as the ﬁrst day of a quarter, then for the purposes of the payment of FBT, the employer must treat the period between that day and the ﬁrst day of the next quarter as if it were a quarter.
Deﬁned in this Act: close company, Commissioner, employee, employer, FBT, income year, pay, quarter, tax year Compare: 2004 No 35 ss ND 2(4), ND 14(2B), ND 15 RD 63 When employer stops employing staff (1) (2) Who this section applies to This section applies in a tax year to an employer who stops employing staff and does not intend to replace them.

But this section does not apply to an employer who continues to pro- vide a fringe beneﬁt to a former employee.
Treated as ﬁnal quarter The employer must pay FBT under section RD 59, treating the quarter of the tax year in which the employment ended as if it were the ﬁnal quarter.
Single rate option (3) As an alternative to the application of section RD 50(2) or RD 53(3), the employer may choose to pay FBT under the single rate option— (a) making the calculation in relation to the period from the start of the tax year to the date on which the employer stops employing staff; and 2649 Part R s RD 64 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) taking into account any earlier payments of FBT made in relation to an employee.
Deﬁned in this Act: employee, employer, FBT, fringe beneﬁt, pay, quarter, tax year Compare: 2004 No 35 s ND 8 Employer’s superannuation contribution tax (ESCT) rules and employer’s superannuation contributions Introductory provisions RD 64 ESCT rules and their application (1) (2) Meaning The ESCT rules means— (a) section CX 49 (Employer’s superannuation contribu- tions); and sections RD 65 to RD 71; and sections 15C to 15M, 24J to 24P, 47, 48, and Part 9 of the Tax Administration Act 1994.
(b) (c) Application The ESCT rules apply to an employer who makes an em- ployer’s superannuation contribution.
Deﬁned in this Act: employer, employer’s superannuation contribution, ESCT rules Compare: 2004 No 35 ss NE 1, OB 1 “SSCWT rules” RD 65 Employer’s superannuation cash contributions Contribution in money for beneﬁt of employees (1) An employer’s superannuation cash contribution means an employer’s superannuation contribution paid in money either to a superannuation fund or under the KiwiSaver Act 2006 to the Commissioner for later payment to a superannuation fund.
Determining amount of contribution The amount of an employer’s superannuation cash contribu- tion is the sum of— (a) the amount of the contribution received by the super- annuation fund or, for a contribution paid to the Com- missioner under the KiwiSaver Act 2006, received by (2) 2650 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 65 the Commissioner for payment to the superannuation fund; and the amount of tax withheld for the employer’s super- annuation contribution.
(b) Payment of amount of tax (3) An employer who makes an employer’s superannuation cash contribution on behalf of an employee must pay to the Com- missioner the amount of tax for the contribution.

The amount is payable in 2 payment periods in a month as set out in section RA 15 (Payment dates for interim and other tax payments) un- less they are an employer to whom section RD 22(3) applies.

Subsection (4) overrides this subsection.
Contributions to KiwiSaver schemes and complying superannuation funds [Repealed] [Repealed] Formula: subsection (4)(b)(i) [Repealed] [Repealed] Formula: subsection (4)(b)(ii) [Repealed] [Repealed] Deﬁnition of items in formulas [Repealed] [Repealed] Contributions to complying superannuation funds [Repealed] [Repealed] Formula: subsection (8)(c)(i) [Repealed] [Repealed] (4) (5) (6) (7) (8) (9) Formula: subsection (8)(c)(ii) [Repealed] [Repealed] (10) Deﬁnition of items in formulas 2651 Part R s RD 65 Income Tax Act 2007 Reprinted as at 29 May 2012 [Repealed] [Repealed] (11) When contribution paid [Repealed] [Repealed] Some deﬁnitions [Repealed] [Repealed] Deﬁned in this Act: amount, amount of tax, Commissioner, employee, em- ployer, employer’s superannuation cash contribution, ESCT, pay, superannu- ation fund Compare: 2004 No 35 ss NE 2(2), NE 3, NE 3B, NE 6, OB 1 “employer’s superannuation contribution”, “speciﬁed superannuation contribution” Section RD 65 heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 519(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 65(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 519(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 65(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 519(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 65(2)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 519(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 65(3): amended (with effect on 1 April 2008), on 6 October 2009, by section 519(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 65(4) heading: repealed, on 1 April 2012, pursuant to section 9(1) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 65(4): repealed, on 1 April 2012, by section 9(1) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 65(5) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 65(5): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(6) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(6): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 65(7) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(7): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
(12) (13) 2652 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 65 Section RD 65(8) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(8): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 65(9) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(9): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(10) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 65(10): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(11) heading: repealed, on 1 April 2009, pursuant to section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RD 65(11): repealed, on 1 April 2009, by section 55(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section RD 65(12) heading: repealed (with effect on 1 April 2008), on 6 Octo- ber 2009, pursuant to section 519(10) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 65(12): repealed (with effect on 1 April 2008), on 6 October 2009, by section 519(10) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 65(13) heading: repealed, on 1 April 2012, pursuant to section 9(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 65(13): repealed, on 1 April 2012, by section 9(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 65 list of deﬁned terms complying fund calculation period: re- pealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section RD 65 list of deﬁned terms complying fund rules: repealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 65 list of deﬁned terms complying superannuation fund: re- pealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section RD 65 list of deﬁned terms compulsory employer contribution: re- pealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section RD 65 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 519(12) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 65 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 519(12) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

2653 Part R s RD 66 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RD 65 list of deﬁned terms KiwiSaver calculation period: repealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section RD 65 list of deﬁned terms KiwiSaver contribution: repealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Meas- ures) Act 2011 (2011 No 23).

Section RD 65 list of deﬁned terms KiwiSaver scheme: repealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section RD 65 list of deﬁned terms salary or wages: repealed, on 1 April 2012, by section 9(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

RD 66 Complying fund rules [Repealed] Section RD 66: repealed, on 1 April 2012, by section 10 of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Calculating amounts of tax RD 67 Calculating amounts of tax for employer’s superannuation cash contributions The amount of tax for an employer’s superannuation cash con- tribution is–– (a) the amount determined under schedule 1, part D, clause 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts); or 33% of the employer’s superannuation cash contribu- tion, if the employer chooses 33% and the contribution is to a deﬁned beneﬁt fund.
(b) Deﬁned in this Act: amount, amount of tax, deﬁned beneﬁt fund, employer, employer’s superannuation cash contribution Section RD 67: replaced, on 1 April 2012, by section 123 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
RD 68 Choosing to have amount treated as salary or wages Amount treated as salary or wages (1) With the agreement of their employer who makes an em- ployer’s superannuation cash contribution on their behalf, an employee may choose to have some or all of an employer’s superannuation cash contribution made on their behalf treated as salary or wages under the PAYE rules.
2654 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 70 (2) Revoking election The employee’s election is valid until revoked in writing.

Deﬁned in this Act: employee, employer, employer’s superannuation cash con- tribution, PAYE rules, salary or wages Compare: 2004 No 35 s NE 2A(1), (2) Section RD 68(1) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 521(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 68(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 521(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 68(2) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 521(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 68(2): added (with effect on 1 April 2008), on 6 October 2009, by section 521(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 68 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 521(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 68 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 521(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

RD 69 Choosing different rates for employer’s superannuation cash contributions [Repealed] Section RD 69: repealed, on 1 April 2012, by section 12 of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
RD 70 Calculating amounts of tax on failure to withhold (1) When this section applies This section applies when an employer or PAYE intermediary does not withhold under section RD 65(3) an amount of tax for an employer’s superannuation cash contribution.

Calculation of amount of tax The amount of tax is calculated using the formula— (2) tax rate tax rate 1 × contribution to fund tax already paid.
2655 Part R s RD 71 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Deﬁnition of items in formula In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) at the time the contribution was made: contribution to fund is the amount of the contribu- tion received by the superannuation fund excluding the amount of tax: tax already paid is any amount of tax for the contribu- tion that has already been paid.
(b) (c) Deﬁned in this Act: amount, amount of tax, basic rate, employer, employer’s superannuation cash contribution, pay, PAYE intermediary, superannuation fund Compare: 2004 No 35 s NE 5 Section RD 70(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 523(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 70(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RD 70 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 523(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 70 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 523(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RD 71 Amounts of tax treated as paid to and received by superannuation funds In determining whether an employer has met their obligation to pay a contribution to a superannuation fund— (a) the employer or their PAYE intermediary is treated as having paid to the superannuation fund an amount of tax withheld under the ESCT rules or the PAYE rules, if applicable; and the fund is treated as having received the amount re- ferred to under paragraph (a); and the payment referred to in paragraph (a) and the receipt referred to in paragraph (b) are treated as having oc- (b) (c) 2656 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RD 72 curred when the superannuation fund received the em- ployer’s superannuation cash contribution.
Deﬁned in this Act: amount of tax, employer, employer’s superannuation cash contribution, ESCT rules, pay, PAYE intermediary, PAYE rules, superannuation fund Compare: 2004 No 35 s NE 6 Section RD 71(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 524(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 71(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 524(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 71 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 524(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RD 71 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 524(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Tax on certain withdrawals from superannuation funds [Repealed] Heading: repealed, on 1 April 2011, by section 114 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
RD 72 Recovery of tax paid by superannuation funds [Repealed] Section RD 72: repealed, on 1 April 2011, by section 114 of the Taxation (An- nual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Mat- ters) Act 2010 (2010 No 109).
Subpart RE—Withholding tax on resident passive income (RWT) Contents Introductory provisions RE 1 RWT rules and their application RE 2 Resident passive income Page 2659 2659 2657 Income Tax Act 2007 Reprinted as at 29 May 2012 Withholding obligations RE 3 Obligation to withhold RWT RE 4 Persons who have withholding obligations RE 5 No withholding obligation in certain circumstances RE 6 When obligation to withhold unreasonable RE 7 When resident passive income paid to trustees RE 8 When resident passive income paid to nominees RE 9 Agents’ or trustees’ obligations in relation to certain dividends RE 10 Special rule relating to payments of interest RE 10B Amounts withheld from distributions to holders of FIF attributing interests RE 11 Notiﬁcation by companies Calculating amounts of tax RE 12 Interest RE 13 Dividends other than non-cash dividends RE 14 Non-cash dividends other than bonus issues in lieu RE 15 Bonus issues in lieu RE 16 Taxable Maori authority distributions RE 17 Replacement payments under share-lending arrangements RE 18 Payments made by RWT proxies RE 19 Choosing other rates Paying amounts of tax RE 20 Paying RWT RE 21 Basis for payment of RWT RE 22 When payment treated as non-resident passive income RE 23 When amount of tax treated as FDP credit RE 24 When amount of tax treated as Maori authority credit RE 25 When amount of tax treated as imputation credit RE 26 Payment by proxy RWT exemption certiﬁcates RE 27 RWT exemption certiﬁcates RE 28 When certiﬁcates expire RE 29 Establishing whether person holds certiﬁcate RE 30 When unincorporated bodies hold certiﬁcates Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 2 Introductory provisions RE 1 RWT rules and their application (1) (2) Meaning The RWT rules means— (a) (b) this subpart; and sections LA 4, LA 6, and LB 3 (which relate to tax credits for RWT); and sections 15N, 25 to 28, 32E to
 32L, 50 to 55, 78D, and 99, Part 9, sections 170 to 172, and 185 of the Tax Administration Act 1994.
(c) Application The RWT rules apply to a person who pays an amount of resi- dent passive income.

Deﬁned in this Act: amount, pay, resident passive income, RWT rules Compare: 2004 No 35 s OB 1 “RWT rules” Section RE 1(1)(c): amended (with effect on 1 April 2008), on 7 December 2009, by section 105(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
RE 2 Resident passive income Interest, dividends, and certain distributions (1) Resident passive income means an amount paid to a person to the extent to which it consists of— (a) (b) (c) interest: a dividend: a taxable Maori authority distribution other than a re- tirement scheme contribution: a replacement payment paid to a person under a share- lending arrangement.

(d) (2) (3) Exclusions and inclusions Subsections (3) to (5) override subsection (1).
Exclusions from interest The following amounts are excluded from interest under this section: (a) (b) exempt interest: interest derived by a person who holds an RWT exemp- tion certiﬁcate issued under section RE 27: interest that is non-resident passive income: (c) 2659 Part R s RE 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (d) (e) (f) (g) interest derived from outside New Zealand by a non- resident: interest that is exempt income under section CW 27 (Certain income derived by transitional resident): interest paid by a company and derived by another com- pany when both companies are part of the same group of companies at the time of the payment: interest paid to an intermediary— (i) by a client in relation to the operation of a tax pooling account; or by the Commissioner under section RP 18 (De- posits in tax pooling accounts): (ii) (h) interest payable under section 120D or Part 7 of the Tax Administration Act 1994.
Inclusions in interest For the purposes of this section, the following amounts are treated as interest and not as a dividend: (a) a dividend that a building society pays to a member in relation to a withdrawable share in the society: a dividend that a friendly society pays to its member in relation to a share in the society.
(b) Exclusions from dividends The following amounts are excluded from a dividend under this section: (a) a dividend that is exempt income— (i) through the application of either of sections CW 9 and CW 10 (which relate to income from equity); or under section CW 27 (Certain income derived by transitional resident); or under section CW 64 (Exemption under other Acts): (ii) (iii) (b) an amount treated as a dividend under— (i) section CB 34(5)(a) (Amounts derived by mem- bers from mutual associations); or sections GB 23 to GB 25 (which relate to exces- sive remuneration): (ii) (bb) (c) a dividend from a portfolio investment entity: an amount of attributed repatriation: (4) (5) 2660 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 2 (d) (e) (f) (g) (h) (i) a dividend derived by a person who holds an RWT ex- emption certiﬁcate issued under section RE 27: a dividend that is non-resident passive income: a dividend derived by a non-resident other than a divi- dend that has a source in New Zealand: a dividend paid by a company and derived by another company when both are part of the same group of com- panies at the time of the payment: a dividend that is excluded income under section CX 50B (Contributions to retirement savings schemes) or would be excluded income under that section in the absence of subsection (2)(a) and (b): a dividend other than a non-cash dividend that— (i) has an imputation ratio, FDP ratio, or combined imputation and FDP ratio of 30/70 or more; and is paid by a unit trust or group investment fund (or RWT proxy on their behalf) that has not withheld RWT from any earlier dividend: (ii) (j) a dividend treated as derived by a person under section GB 1(3) (Arrangements involving dividend stripping).
(6) Beneﬁciary income If a person derives an amount described in this section in their capacity as trustee and the amount is beneﬁciary income, the amount is treated as not derived by the trustee.

Trustees’ RWT substitution payment (7) A trustee may pay an amount of money (the RWT substitu- tion payment) to the relevant beneﬁciary that is equal to or less than the amount of RWT withheld for an amount to which subsection (6) applies (the RPI beneﬁciary income).
(8) Effect of RWT substitution payment The RWT substitution payment is treated as an amount of resi- dent passive income that is beneﬁciary income, with the same nature as the RPI beneﬁciary income.

There is no liability or obligation to withhold RWT in relation to the RWT substitu- tion payment.
Deﬁned in this Act: amount, attributed repatriation, beneﬁciary, beneﬁciary income, building society, combined imputation and FDP ratio, Commissioner, company, dividend, excluded income, exempt income, exempt interest, friendly society, FDP ratio, group investment fund, group of companies, imputation ra- 2661 Part R s RE 2 Income Tax Act 2007 Reprinted as at 29 May 2012 tio, interest, New Zealand, non-cash dividend, non-resident, non-resident pas- sive income, pay, portfolio investment entity, replacement payment, resident passive income, RWT, RWT exemption certiﬁcate, RWT proxy, RWT substi- tution payment, share, share-lending arrangement, source in New Zealand, tax pooling account, taxable Maori authority distribution, trustee, unit trust, with- drawable share Compare: 2004 No 35 s NF 1(2), (4), (5) Section RE 2(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 525(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RE 2(1)(c): amended, on 1 April 2008, by section 542(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 2(3)(c): amended (with effect on 1 April 2008), on 6 October 2009, by section 525(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RE 2(5)(a)(i): amended (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 127(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RE 2(5)(bb): inserted (with effect from 1 April 2008), on 29 May 2008, by section 44(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remed- ial Matters) Act 2008 (2008 No 36).
Section RE 2(5)(f): amended, on 21 December 2010, by section 129(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section RE 2(5)(g): amended, on 1 April 2008, by section 542(2) of the Taxa- tion (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 2(5)(h): added, on 1 April 2008, by section 542(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 2(5)(i): added, on 1 April 2008, by section 542(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 2(5)(j): added (with effect on 1 April 2008), on 7 December 2009, by section 106(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RE 2(7) heading: added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 124(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RE 2(7): added (with effect on 1 April 2008), on 29 August 2011 (apply- ing for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 124(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RE 2(8) heading: added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 124(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
2662 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 2 Section RE 2(8): added (with effect on 1 April 2008), on 29 August 2011 (apply- ing for the 2008–09 and later income years if the trustee has taken a tax position in a tax return that is consistent with subsection (1)), by section 124(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RE 2 list of deﬁned terms beneﬁciary: inserted (with effect on 1 April 2008), on 29 August 2011, by section 124(2) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).

Section RE 2 list of deﬁned terms combined imputation and FDP ratio: in- serted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 2 list of deﬁned terms derived from New Zealand: repealed, on 21 December 2010, by section 129(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section RE 2 list of deﬁned terms excluded income: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 2 list of deﬁned terms FDP ratio: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 2 list of deﬁned terms group investment fund: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).
Section RE 2 list of deﬁned terms imputation ratio: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 2 list of deﬁned terms non-cash dividend: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 2 list of deﬁned terms portfolio investment entity: inserted (with effect from 1 April 2008), on 29 May 2008, by section 44(2) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RE 2 list of deﬁned terms resident in New Zealand: repealed (with effect on 1 April 2008), on 6 October 2009, by section 525(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RE 2 list of deﬁned terms RWT: inserted, on 1 April 2008, by sec- tion 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 2 list of deﬁned terms RWT proxy: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 2 list of deﬁned terms RWT substitution payment: inserted (with effect on 1 April 2008), on 29 August 2011, by section 124(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

2663 Part R s RE 3 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RE 2 list of deﬁned terms source in New Zealand: inserted, on 21 De- cember 2010, by section 129(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section RE 2 list of deﬁned terms unit trust: inserted, on 1 April 2008, by section 542(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Withholding obligations RE 3 Obligation to withhold RWT Obligation to withhold and pay (1) A person to whom section RE 1(2) applies is liable to withhold resident withholding tax (RWT) and pay the amount to the Commissioner if they make the payment and— (a) they have an obligation to withhold an amount of tax under section RE 4 and are not excluded under sections RE 5 and RE 6 from meeting the obligation: [Repealed] they are an RWT proxy in relation to the payment.
(b) (c) (2) Non-cash dividends For the purposes of subsection (1), if the payment is a non-cash dividend, the person must calculate the amount of tax under section RE 14 and pay the amount to the Commissioner.
Deﬁned in this Act: amount, amount of tax, Commissioner, non-cash dividend, pay, RWT, RWT proxy Compare: 2004 No 35 s NF 2(1A), (1AB) Section RE 3(1)(a): substituted (with effect on 1 April 2008), on 6 October 2009, by section 526(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RE 3(1)(b): repealed (with effect on 1 April 2008), on 6 October 2009, by section 526(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

RE 4 Persons who have withholding obligations Requirements (1) A person referred to in section RE 3(1)(a) must meet at least 1 requirement of each of subsections (2) and (3) in relation to a payment of resident passive income.
Requirement for person The person must be, at the time the payment is made,— (a) resident in New Zealand; or (2) 2664 Reprinted as at 29 May 2012 (b) Income Tax Act 2007 Part R s RE 4 if not resident in New Zealand,— (i) carrying on a taxable activity in New Zealand through a ﬁxed establishment in New Zealand; and not excluded under subsection (4).
(ii) (3) (4) Requirements for person and payment In addition to meeting a requirement of subsection (2), 1 of the following requirements must be met at the time the payment is made: (a) (b) the person holds an RWT exemption certiﬁcate: the payment is made in whole or in part in carrying on a taxable activity, whether or not the person acts as agent or trustee for another person: the payment is a dividend: the payment is a taxable Maori authority distribution: the payment is a replacement payment under a share- lending arrangement.
(c) (d) (e) When person not treated as resident or carrying on taxable activity For the purposes of subsection (2), a person who is not resi- dent in New Zealand and is carrying on a taxable activity in New Zealand through a ﬁxed establishment in New Zealand, is treated as not meeting the requirements of the subsection if they establish that, at the time the payment is made,— (a) either,— (i) (ii) for interest or a dividend, the payment is at- tributable to or effectively connected with a ﬁxed establishment of the person outside New Zealand; or for a dividend, the company is not resident in New Zealand; and (b) all amounts payable in relation to money lent or shares to which the payment relates are payable in a currency other than New Zealand currency.
Currency conversion (5) A person who is required to withhold RWT in relation to a payment of resident passive income that is in a currency other 2665 Part R s RE 5 Income Tax Act 2007 Reprinted as at 29 May 2012 than New Zealand currency may withhold and pay the amount of the RWT in the foreign currency.
(6) (7) Conversion rates: credit For the purposes of subsection (5), in the calculation of the amount of RWT to be credited against income tax, the amount must be converted to New Zealand currency at the option of the person deriving the resident passive income at either— (a) the close of trading spot exchange rate on the day the RWT is paid; or an exchange rate speciﬁed by the Commissioner for this purpose in relation to the month in which the RWT is paid.
(b) Conversion rates: payment For the purposes of subsection (5), in the calculation of the amount of RWT to be paid to the Commissioner, the amount must be converted to New Zealand currency either at— (a) the close of trading spot exchange rate on the ﬁrst work- ing day of the month after the month in which the day the RWT is withheld; or a conversion rate applying under section OB 60(6) (Im- putation credits attached to dividends) if the resident passive income is a dividend and the person required to withhold RWT under subsection (5) is an Australian ICA company that chooses to use that rate.
(b) Deﬁned in this Act: amount, Australian ICA company, close of trading spot exchange rate, Commissioner, company, dividend, ﬁxed establishment, income tax, interest, money lent, New Zealand, pay, replacement payment, resident in New Zealand, resident passive income, RWT, RWT exemption certiﬁcate, share, share-lending arrangement, taxable activity, taxable Maori authority dis- tribution, trustee, working day Compare: 2004 No 35 s NF 2(3), (4) Section RE 4(6): amended (with effect on 30 June 2009), on 6 October 2009, by section 527(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RE 4 list of deﬁned terms FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 527(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RE 5 No withholding obligation in certain circumstances When this section applies This section applies when a person (person A)— (1) 2666 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 6 (2) (3) (a) (b) pays an amount to another person (person B); or receives a payment while acting as agent or bare trustee for person B.
No obligation if person B exempt For the purposes of determining whether person A is required under section RE 4 to withhold RWT, the payment is treated as not consisting of resident passive income if person A has established that person B holds an RWT exemption certiﬁcate issued under section RE 27.
No obligation if person B transitional resident If person A receives an amount of resident passive income while acting as agent or bare trustee for person B, they are not required to withhold RWT in relation to the amount when— (a) person B notiﬁes person A that— (i) (ii) they are a transitional resident for a period; and an amount paid during the period from a particu- lar source is exempt income of person B under section CW 27 (Certain income derived by tran- sitional resident); and (b) (c) person A receives the payment during the period from the particular source; and person A has no reasonable grounds for believing that the payment is not exempt income of person B under section CW 27.
Deﬁned in this Act: amount, exempt income, notify, pay, resident passive in- come, RWT, RWT exemption certiﬁcate, transitional resident, trustee Compare: 2004 No 35 s NF 2(7), (7B) RE 6 When obligation to withhold unreasonable (1) (2) When this section applies This section applies when a person (person A) who is a person listed in a paragraph in section 32E(2)(a) to (h) of the Tax Administration Act 1994— (a) (b) makes a payment at person B’s request.
receives an amount from another person (person B); or No obligation if unreasonable For the purposes of determining whether person A is required under section RE 4 to withhold RWT, the payment is treated 2667 Part R s RE 7 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) as not consisting of resident passive income of person B to the extent to which— (a) person A could not reasonably be expected to be aware that the payment was resident passive income; or for an amount that is a redemption payment, person A could not reasonably be expected to be aware of the amount that consisted of resident passive income.
Deﬁned in this Act: amount, pay, redemption payment, resident passive income, RWT Compare: 2004 No 35 s NF 2(8) RE 7 When resident passive income paid to trustees (1) Who this section applies to This section applies when— (a) (b) (c) an amount is paid to a person (person A) who is acting as trustee for another person (person B) at the time; and some or all of the amount is resident passive income other than a replacement payment under a share-lending arrangement; and person A— (i) does not hold an RWT exemption certiﬁcate at the time of the payment; and is paid the amount in the conduct of a taxable activity carried on by them; and is not a nominee to whom section RE 8 applies.
(ii) (iii) Obligation to withhold (2) At the time the payment is made and to the extent to which it has not already been withheld, person A must withhold RWT for the payment and pay it to the Commissioner.

(3) Relationship with section RE 9 Section RE 9 overrides this section.
Deﬁned in this Act: amount, Commissioner, nominee, pay, replacement pay- ment, resident passive income, RWT, RWT exemption certiﬁcate, share-lending arrangement, taxable activity, trustee Compare: 2004 No 35 s NF 3(1), (2) RE 8 When resident passive income paid to nominees Who this section applies to This section applies when— (1) 2668 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 9 (a) (b) (c) an amount is paid to a person (person A) who is a nom- inee for another person (person B) at the time; and some or all of the amount is resident passive income; and person A— (i) holds an RWT exemption certiﬁcate at the time of the payment; or is paid the amount in the conduct of a taxable activity carried on by them.
(ii) Obligation to withhold (2) At the time the payment is received and to the extent to which it has not already been withheld, person A must withhold RWT for the payment and pay it to the Commissioner.

(3) Relationship with section RE 9 Section RE 9 overrides this section.
Deﬁned in this Act: amount, Commissioner, nominee, pay, resident passive income, RWT, RWT exemption certiﬁcate, taxable activity Compare: 2004 No 35 s NF 3(1) RE 9 Agents’ or trustees’ obligations in relation to certain dividends (1) (2) (3) When this section applies This section applies when an agent or trustee is required to withhold RWT from certain dividends.
Dividends other than those having the nature of interest To the extent to which the resident passive income consists of a dividend other than a dividend treated as interest, an amount of tax that must be withheld under section RE 3 is treated as an amount to which the RWT rules apply.
Non-cash dividends To the extent to which the resident passive income consists of a non-cash dividend, the trustee or agent must pay to the Commissioner an amount equal to the amount of tax for the dividend as if it were the amount of tax required to be withheld and paid under the RWT rules.
2669 Part R s RE 10 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Obligation of person paying not overridden This section does not override the obligation of the person who pays the resident passive income to the agent or trustee to with- hold RWT for the payment under section RE 4.
Deﬁned in this Act: amount, amount of tax, Commissioner, dividend, dividend treated as interest, non-cash dividend, pay, resident passive income, RWT, RWT rules, trustee Compare: 2004 No 35 s NF 3(3)–(5) Section RE 9(2): substituted (with effect on 30 June 2009), on 6 October 2009, by section 528(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RE 9 list of deﬁned terms FDP rules: repealed (with effect on 30 June 2009), on 6 October 2009, by section 528(2) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RE 10 Special rule relating to payments of interest (1) Threshold for amounts of interest This section applies to a person who— (a) (b) pays resident passive income consisting of interest; and either does not hold an RWT exemption certiﬁcate at the time of the payment, or is described in section 32E(2)(k) or (l) of the Tax Administration Act 1994 or holds a certiﬁcate under section 32I of that Act; and has paid an amount of resident passive income consist- ing of interest that totals less than $5,000 in the tax year before the tax year in which the payment is made; and (d) would be liable to withhold RWT for the resident pas- (c) sive income in the absence of this section.
Minimum amount (2) Despite section RE 4(3), the person is required to withhold the amount of tax for the payment only if the total resident passive income consisting of interest paid by the person in the tax year in which the payment is made is more than $5,000.
Deﬁned in this Act: amount, amount of tax, interest, pay, resident passive in- come, RWT, RWT exemption certiﬁcate, tax year Compare: 2004 No 35 s NF 2(5) 2670 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 10B RE 10B Amounts withheld from distributions to holders of FIF attributing interests (1) (2) (3) (4) When this section applies This section applies when— (a) (b) (c) (b) a distribution is made to a holder of an attributing inter- est in a FIF; and section CD 36 (Foreign investment fund income) or EX 59(2) (Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method) applies to the distribution; and an amount is withheld by the payer from the distribution because the payer has treated the distribution as resident passive income subject to the RWT rules.
Treatment of amount The amount withheld is treated as— (a) RWT for the purposes of this subpart and subpart LA (General rules for tax credits), and sections LB 3 (Tax credits for resident withholding tax), and RM 1 to RM 10 (which relate to refunds); and tax paid in excess for the purposes of Part 10B of the Tax Administration Act 1994.

Treatment of distribution The distribution is treated as resident passive income for the purposes of the sections listed in subsection (2).
Refunds Subsection (2) does not apply if the payer or the holder applies under section RM 8(4) or (5) (Overpaid RWT or NRWT), as applicable, for a refund in relation to the amount withheld be- fore the next 31 March after the date on which the amount of tax was withheld.
Deﬁned in this Act: amount of tax, attributing interest, FIF, pay, resident passive income, RWT, tax Section RE 10B: inserted (with effect on 1 April 2008), on 7 December 2009, by section 107(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
2671 Part R s RE 11 Income Tax Act 2007 Reprinted as at 29 May 2012 RE 11 Notiﬁcation by companies (1) (2) (3) (4) When this section applies This section applies when a company that is not a trustee or a Maori authority is entitled to receive a payment of resident pas- sive income other than a replacement payment under a share- lending arrangement.

Notiﬁcation required The company must notify the person making the payment that they are a company.
Withholding rate The person making the payment must withhold RWT for the payment at the relevant rate set out in schedule 1, part D, clause 4 (Basic tax rates: income tax, ESCT, RSCT, RWT, and at- tributed fringe beneﬁts) for a payment made on or after the date of notiﬁcation.

Consequence of failure to notify If the company does not notify the person making the payment, the person must apply the higher withholding rate set out in section RE 19(3).
Deﬁned in this Act: company, Maori authority, notify, pay, replacement pay- ment, resident passive income, RWT, share-lending arrangement, trustee Compare: 2004 No 35 s NF 2B Section RE 11(3): amended (with effect on 1 April 2008), on 6 October 2009, by section 529(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RE 11(3): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Calculating amounts of tax RE 12 Interest When this section applies This section applies when a person makes a payment of resi- dent passive income that consists of interest.

Calculation of amount of tax The amount of tax for the payment that the person must with- hold and pay to the Commissioner is calculated using the for- mula— (1) (2) 2672 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 12 (tax rate × (interest paid + foreign withholding tax)) – foreign withholding tax.
(3) Deﬁnition of items in formula In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D, clause 3 or 4 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): interest paid is the interest paid before the amount of tax is determined: foreign withholding tax is the amount of foreign with- holding tax paid or payable on the interest paid.
(b) (c) Modiﬁcation for 2009–10 (4) Despite subsection (3)(a), the amount of tax that the person must withhold and pay may, if the person chooses, be calcu- lated, under subsection (3), using a tax rate of 0.38 if— (a) the payment of resident passive income is made in the 2009–10 tax year; and the tax rate under subsection (3)(a) would be 0.39 in the absence of this subsection.
(b) Modiﬁcation for companies and portfolio investment entities for 2010–11 tax year (5) Despite subsection (3)(a), the amount of tax that the person must withhold and pay may, if the person chooses, be calcu- lated under subsection (3) using a tax rate of 0.30 if— (a) the payment of resident passive income that consists of interest is made in the 2010–11 tax year to— a portfolio investment entity; or (i) a company that is not a trustee or a Maori author- (ii) ity; and (b) the tax rate under subsection (3)(a) would be 0.33 in the absence of this subsection.
Deﬁned in this Act: amount of tax, Commissioner, company, foreign withhold- ing tax, income year, interest, Maori authority, pay, portfolio investment entity, resident passive income, trustee Compare: 2004 No 35 s NF 2(1)(a) Section RE 12(3)(a) tax rate: amended (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 530(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
2673 Part R s RE 13 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RE 12(3)(a) tax rate: amended (with effect from 1 April 2008), on 15 December 2008, by section 33(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RE 12(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 12(4) heading: added, on 1 April 2009, by section 33(2) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RE 12(4): added, on 1 April 2009, by section 33(2) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section RE 12(5) heading: added, on 1 April 2010 (applying for the 2010–11 income year), by section 108(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RE 12(5) heading: amended (with effect on 1 April 2010), on 7 Septem- ber 2010, by section 115(1) of the Taxation (Annual Rates, Trans-Tasman Sav- ings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section RE 12(5): added, on 1 April 2010 (applying for the 2010–11 income year), by section 108(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RE 12(5)(a): substituted (with effect on 1 April 2010), on 7 September 2010, by section 115(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section RE 12 list of deﬁned terms company: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RE 12 list of deﬁned terms income year: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RE 12 list of deﬁned terms Maori authority: inserted (with effect on 1 April 2010), on 7 September 2010, by section 115(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section RE 12 list of deﬁned terms portfolio investment entity: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RE 12 list of deﬁned terms trustee: inserted (with effect on 1 April 2010), on 7 September 2010, by section 115(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
RE 13 Dividends other than non-cash dividends When this section applies This section applies when a person makes a payment of resi- dent passive income that consists of a dividend other than a non-cash dividend.
(1) 2674 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 13 (2) (3) Calculation of amount of tax The amount of tax for the payment that the person must with- hold and pay to the Commissioner is calculated using the for- mula— (tax rate × (dividend paid + tax paid or credit attached)) – tax paid or credit attached.
Deﬁnition of items in formula In the formula,— (a) (b) (c) tax rate is the basic rate set out in schedule 1, part D, clause 5 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): dividend paid is the amount of the dividend paid before the amount of tax is determined: tax paid or credit attached is the total of the following amounts: (i) (ii) if the dividend is paid in relation to shares issued by an imputation credit account (ICA) company, the amount of an imputation credit attached to the dividend: if the dividend is paid in relation to shares is- sued by a company not resident in New Zealand, the amount of foreign withholding tax paid or payable on the amount of dividend: if the dividend is paid in relation to shares is- sued by a company resident in New Zealand, the amount of an FDP credit attached to the dividend.
Deﬁned in this Act: amount, amount of tax, Commissioner, company, dividend, FDP credit, foreign withholding tax, ICA company, imputation credit, non-cash dividend, pay, resident in New Zealand, resident passive income, share Compare: 2004 No 35 s NF 2(1)(b) (iii) Section RE 13(3)(a) tax rate: amended (with effect from 1 April 2008), on 29 May 2008, by section 45 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Section RE 13(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

2675 Part R s RE 14 Income Tax Act 2007 Reprinted as at 29 May 2012 RE 14 Non-cash dividends other than bonus issues in lieu When this section applies This section applies when a person makes a payment of resi- dent passive income that consists of a non-cash dividend other than a bonus issue in lieu.
Calculation of amount of tax The amount of tax for the payment that the person must pay under subsection (4) to the Commissioner is calculated using the formula— (tax rate × dividend paid) tax rate 1 tax paid or credit attached.
Deﬁnition of items in formula In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D, clause 5 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): dividend paid is the amount of the dividend paid before the amount of tax is determined: tax paid or credit attached is the total of the following amounts: (i) if the dividend is paid in relation to shares issued by an ICA company, the amount of an imputation credit attached to the dividend: if the dividend is paid in relation to shares is- sued by a company not resident in New Zealand, the amount of foreign withholding tax paid or payable on the amount of dividend: if the dividend is paid in relation to shares is- sued by a company resident in New Zealand, the amount of an FDP credit attached to the dividend.
(ii) (iii) (b) (c) Treatment as if amount of tax withheld For the purposes of subsection (2), the person must pay to the Commissioner the amount calculated as if it were the amount of tax required to be withheld and paid under the RWT rules.
Deﬁned in this Act: amount, amount of tax, bonus issue in lieu, Commis- sioner, company, FDP credit, foreign withholding tax, ICA company, imput- (1) (2) (3) (4) 2676 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 15 ation credit, non-cash dividend, pay, resident in New Zealand, resident passive income, RWT rules, share Compare: 2004 No 35 s NF 2(1)(c), (2) Section RE 14(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RE 15 Bonus issues in lieu (1) (2) (3) When this section applies This section applies when a person makes a payment of resi- dent passive income that consists of a dividend that is a bonus issue in lieu.

Calculation of amount of tax The amount of tax for the payment is calculated using the for- mula— (tax rate × (alternative amount + tax paid or credit attached)) – tax paid or credit attached.
Deﬁnition of items in formula In the formula,— (a) (b) (c) tax rate is the basic rate set out in schedule 1, part D, clause 5 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): alternative amount is the amount of money offered as an alternative to the bonus issue before the amount of tax is determined: tax paid or credit attached is the total of the following amounts: (i) if the dividend is paid in relation to shares issued by an ICA company, the amount of an imputation credit attached to the dividend: if the dividend is paid in relation to shares is- sued by a company not resident in New Zealand, the amount of foreign withholding tax paid or payable on the amount of dividend: (ii) 2677 Part R s RE 16 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) if the dividend is paid in relation to shares is- sued by a company resident in New Zealand, the amount of an FDP credit attached to the dividend.
Deﬁned in this Act: amount, amount of tax, bonus issue in lieu, company, divi- dend, FDP credit, foreign withholding tax, ICA company, imputation credit, pay, resident in New Zealand, resident passive income, share Compare: 2004 No 35 s NF 2(1)(d) Section RE 15(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RE 16 Taxable Maori authority distributions (1) (2) When this section applies This section applies when a Maori authority makes a payment of resident passive income that consists of a taxable Maori authority distribution in the form of a sum of money or an amount of a credit in the balance of an account with the Maori authority.
Calculation of amount of tax The amount of tax for the payment that the Maori authority must withhold and pay to the Commissioner is calculated us- ing the formula— (tax rate × (distribution amount + credit attached)) – credit attached.
Non-cash amounts (3) Despite subsection (2), if the resident passive income is not paid in cash, the amount of tax for the payment that the Maori authority must pay to the Commissioner is calculated using the formula— (tax rate × distribution amount) tax rate 1 credit attached.
Deﬁnition of items in formulas In the formulas in subsections (2) and (3),— (a) tax rate is the basic rate set out in schedule 1, part D, clause 6 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): distribution amount is the amount of the distribution before the amount of tax is determined: (b) (4) 2678 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 17 (c) credit attached is the amount of the Maori authority credit attached to the distribution.
Deﬁned in this Act: amount, amount of tax, Commissioner, Maori authority, Maori authority credit, pay, resident passive income, taxable Maori authority distribution Compare: 2004 No 35 s NF 2(1)(e), (f) Section RE 16(4)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RE 17 Replacement payments under share-lending arrangements (1) (2) (3) When this section applies This section applies when a person makes a payment of resi- dent passive income that consists of a replacement payment under a share-lending arrangement.

Calculation of amount of tax The amount of tax for the payment is calculated using the for- mula— tax rate × payment tax rate 1 credit attached transferred credit FDP credit transferred.
Deﬁnition of items in formula In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D, clause 5 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): payment is the amount of the replacement payment excluding an imputation credit attached under section OB 64 (Replacement payments): credit attached is the amount of an imputation credit attached to the replacement payment under section OB 64: credit transferred is the amount of an imputation credit shown in a credit transfer notice relating to the replace- ment payment: (b) (c) (d) 2679 Part R s RE 18 Income Tax Act 2007 Reprinted as at 29 May 2012 (e) FDP credit transferred is the amount of an FDP credit shown in a credit transfer notice relating to the replace- ment payment.
Deﬁned in this Act: amount, amount of tax, credit transfer notice, FDP credit, imputation credit, pay, replacement payment, resident passive income, share- lending arrangement Compare: 2004 No 35 s NF 2(1)(g) Section RE 17(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RE 18 Payments made by RWT proxies Calculation of amount of tax (1) A person who is an RWT proxy for a person paying resident passive income that consists of a dividend must withhold an amount of tax for the payment calculated using the formula— tax rate × amount paid 1 rate.
Deﬁnition of items in formula In the formula,— (a) (2) tax rate is the basic rate set out in schedule 1, part D, clause 3 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): (b) amount paid is the amount of the dividend paid.
Deﬁned in this Act: amount, amount of tax, dividend, pay, resident passive income, RWT proxy Compare: 2004 No 35 s NF 2(1B) Section RE 18(2)(a) tax rate: amended (with effect on 1 April 2008), on 7 Sep- tember 2010 (applying for the 2008–09 and later income years), by section 116(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, Kiwi- Saver, and Remedial Matters) Act 2010 (2010 No 109).
Section RE 18(2)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

RE 19 Choosing other rates When this section applies This section applies when a person (person A) is entitled to receive resident passive income other than a replacement pay- ment under a share-lending arrangement.
(1) 2680 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 20 (2) Person choosing rate Person A may notify the person who is required to withhold the amount of tax for the payment to use 1 of the rates set out in schedule 1, part D, clause 3 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts).
Company choosing rate (3) Despite subsection (1), if person A is a company, they may notify the person making the payment to withhold the amount of tax for the payment at the rate set out in schedule 1, part D, clause 4.

(4) Application of rate The rate chosen under subsection (2) or (3) applies to amounts of tax withheld from the date on which notice is given.
Deﬁned in this Act: amount of tax, company, notify, pay, replacement payment, resident passive income, share-lending arrangement, tax withheld Compare: 2004 No 35 ss NF 2A(1), (3), NF 2D(1), (3) Section RE 19 heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 109(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RE 19(2): amended (with effect from 1 April 2008), on 29 May 2008, by section 46(a) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RE 19(2): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section RE 19(3): amended (with effect from 1 April 2008), on 29 May 2008, by section 46(b) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Paying amounts of tax RE 20 Paying RWT A person who is required under the RWT rules to withhold RWT must pay the amount of tax to the Commissioner under sections RA 15 and RA 16 (which relate to payment dates and the basis on which the payment dates are set).
Deﬁned in this Act: amount of tax, Commissioner, pay, RWT, RWT rules Compare: 2004 No 35 s NF 4(1), (2) 2681 Part R s RE 21 Income Tax Act 2007 Reprinted as at 29 May 2012 RE 21 Basis for payment of RWT (1) (2) (3) (4) When this section applies Subsections (2) to (5) apply for the purposes of section RA 6(1) (Withholding and payment obligations for passive income) to a person who is required under the RWT rules to withhold RWT for resident passive income consisting of interest.
Interest of more than $500 in total If the person estimates for a tax year that they will be required to withhold more than $500 in total for each month of the tax year, they must pay the amount of tax to the Commissioner on a monthly basis.
Interest of less than $500 in total If the person estimates for a tax year that they will be required to withhold less than $500 in total for each month of the tax year, they must pay the amount of tax to the Commissioner in 2 instalments as described in section RA 15 (Payment dates for interim and other tax payments).
When subsection (5) applies Subsection (5) applies when the person has withheld more than $500 in total amounts of tax for a 2 month-period from the start of 1 month in a tax year to the end of the month following that month.

Total in 2-month period (5) Despite subsections (2) and (3), the person must pay the total amount of tax to the Commissioner for the 2-month period by the 20th day of the month following the end of the period.
(6) When subsection (7) applies Subsection (7) applies for the purposes of section RA 6(1) to a person who is required under the RWT rules to withhold RWT for resident passive income consisting of a dividend, a replace- ment payment, or a taxable Maori authority distribution.

2682 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 22 (7) Dividends, replacement payments, and taxable Maori authority distributions The person must pay the amount of tax to the Commissioner on a monthly basis.
Deﬁned in this Act: amount of tax, Commissioner, dividend, interest, pay, re- placement payment, resident passive income, RWT, RWT rules, tax year, tax- able Maori authority distribution Compare: 2004 No 35 s NF 4(1)–(5), (7), (8) RE 22 When payment treated as non-resident passive income (1) (2) (3) When this section applies This section applies when— (a) a person (person A) is required to pay an amount that would be treated as resident passive income in the ab- sence of this section to another person (person B); and person A receives resident passive income as agent or trustee for person B.
(b) No liability If person A concludes on reasonable grounds after making rea- sonable inquiries that an amount is non-resident passive in- come derived by person B, and person A has complied with their obligations under this Act and the Tax Administration Act 1994 in relation to paying non-resident withholding tax (NRWT) to the Commissioner, they have no liability under the RWT rules in relation to the amount.
Payment derived by non-resident For the purposes of determining person A’s liability under the RWT rules, the amount is treated as derived by a non-resident.
Deﬁned in this Act: amount, Commissioner, pay, non-resident, non-resident passive income, NRWT, resident passive income, RWT rules, trustee Compare: 2004 No 35 s NF 5 Section RE 22(1)(a): substituted (with effect on 1 April 2008), on 7 December 2009, by section 110(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RE 22 list of deﬁned terms resident in New Zealand: repealed (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
2683 Part R s RE 23 Income Tax Act 2007 Reprinted as at 29 May 2012 RE 23 When amount of tax treated as FDP credit (1) (2) When this section applies This section applies when a company withholds RWT for resi- dent passive income consisting of a dividend other than a divi- dend treated as interest.
FDP credit The amount is treated as an FDP credit attached to the dividend by the company which is treated as a FDPA company for the purposes of sections LE 6, LF 1, LF 3, LF 4, and LF 9 (which relate to the amount and treatment of FDP credits), and section 185 of the Tax Administration Act 1994.
Deﬁned in this Act: company, dividend, dividend treated as interest, FDPA company, FDP credit, resident passive income, RWT Compare: 2004 No 35 s NF 8(1) Section RE 23(2): amended, on 1 April 2008, by section 543 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

RE 24 When amount of tax treated as Maori authority credit (1) (2) When this section applies This section applies when a Maori authority withholds an amount of tax for a taxable Maori authority distribution.
Maori authority credit The amount is treated as a Maori authority credit attached to the distribution by the Maori authority for the purposes of sec- tions LO 1 to LO 4, OK 16, OK 19, and OK 20 (which relate to the amount and treatment of Maori authority credits).
Deﬁned in this Act: amount of tax, Maori authority, Maori authority credit, taxable Maori authority distribution Compare: 2004 No 35 s NF 8A(1) RE 25 When amount of tax treated as imputation credit (1) When this section applies This section applies when a share user under a share-lending arrangement withholds under the RWT rules an amount of tax for a replacement payment.
Imputation credit The amount of tax withheld— (2) 2684 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 27 (a) (b) is treated for the share supplier as an imputation credit attached to the replacement payment in addition to an imputation credit that the share user attached to the pay- ment under section OB 64 (Replacement payments); and does not give rise under section LB 3 (Tax credits for resident withholding tax) to a tax credit or refund for the share supplier.
Deﬁned in this Act: amount of tax, imputation credit, replacement payment, RWT rules, share-lending arrangement, share supplier, share user, tax credit Compare: 2004 No 35 s NF 8B RE 26 Payment by proxy An RWT proxy who is required to withhold RWT in relation to a payment of resident passive income is treated as having withheld the amount from the payment at the time the payment is made.
Deﬁned in this Act: amount, pay, resident passive income, RWT, RWT proxy Compare: 2004 No 35 s NF 4(9) RWT exemption certiﬁcates RE 27 RWT exemption certiﬁcates Application (1) A person may apply to the Commissioner for an RWT exemp- tion certiﬁcate if— (a) they are a person listed in section 32E(2) of the Tax Administration Act 1994; and they meet the requirements of section 32G of that Act.
(b) When certiﬁcate expires (2) An RWT exemption certiﬁcate expires if— (a) (b) the holder loses the basis of their exemption; or the Commissioner cancels the certiﬁcate under section 32L of the Tax Administration Act 1994.

(3) Notifying Commissioner If the holder of an RWT exemption certiﬁcate becomes aware they no longer meet the requirements, they must notify the 2685 Part R s RE 28 Income Tax Act 2007 Reprinted as at 29 May 2012 Commissioner under section 32K of the Tax Administration Act 1994.
Deﬁned in this Act: Commissioner, notify, RWT exemption certiﬁcate Compare: 2004 No 35 ss NF 9(1), NF 11(1), (2) RE 28 When certiﬁcates expire (1) (2) When this section applies This section applies in a month when a person’s RWT exemp- tion certiﬁcation expires.

But the section does not apply if the person continues to be required to withhold RWT in the course of carrying out a taxable activity.
Payment of outstanding amounts of tax The person must pay to the Commissioner all amounts of RWT withheld and not paid to the Commissioner by the 20th day of the month following the month in which the certiﬁcate expired.
Deﬁned in this Act: amount, Commissioner, pay, RWT, RWT exemption cer- tiﬁcate, taxable activity Compare: 2004 No 35 s NF 4(6) RE 29 Establishing whether person holds certiﬁcate When this section applies This section applies for the purposes of section RE 5(2) to set out the ways available to person A to establish whether person B is a person holding an RWT exemption certiﬁcate.
Requirements Person A may establish that— (a) they have taken reasonable steps to conﬁrm that person B is a person listed in section 32E(2)(a) to (h) of the Tax Administration Act 1994; or except in relation to a person listed in section 32E(2)(k) or (l) or to whom a certiﬁcate has been provided under section 32I, they have been given person B’s tax ﬁle number and have been notiﬁed that person B holds an RWT exemption certiﬁcate; or they have seen person B’s certiﬁcate and have taken reasonable steps to conﬁrm that person B is the person named in the certiﬁcate.
(b) (c) (1) (2) 2686 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 29 (3) (4) (5) Additional requirements In addition to the requirements of subsection (2), the follow- ing requirements must be met in relation to person B’s RWT exemption certiﬁcate: (a) no notice of cancellation has been published in the Gazette— (i) for interest, more than 5 working days before the date on which the money was lent: for a dividend or a taxable Maori authority distri- bution, more than 5 working days before the date on which payment was made: (ii) (b) (c) person A has not been advised by the Commissioner or person B of a cancellation of a certiﬁcate more than 5 working days before the date on which payment is made: person A has no other grounds for believing that person B is not eligible for a certiﬁcate.
Later certiﬁcate For the purposes of subsection (3)(a) and (b), if a notice of can- cellation has been published or if person A has been advised as described, the requirements are still met if— (a) a certiﬁcate has been provided to person B and notiﬁed in the Gazette in the period that is after the notice of cancellation and more than 5 working days before the date on which the payment is made; or person A has seen a certiﬁcate provided to person B after the date of publication of the notice of cancellation.
(b) When person B listed or income of particular type For the purposes of this section, person A has no ground for believing that the payment is income derived by a person other than person B when— (a) person B is a person listed in section 32E(2)(a) to (h) of the Tax Administration Act 1994; and 2687 Part R s RE 30 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) the payment is not interest, a dividend, or a taxable Maori authority distribution derived by person B as trustee on behalf of a third person.
Deﬁned in this Act: Commissioner, dividend, income, interest, notice, notify, pay, RWT exemption certiﬁcate, tax ﬁle number, taxable Maori authority dis- tribution, trustee, working day Compare: 2004 No 35 s NF 2(7) RE 30 When unincorporated bodies hold certiﬁcates (1) (2) (3) (4) (5) When this section applies This section applies when— (a) an unincorporated body that is carrying on a taxable activity holds an RWT exemption certiﬁcate; and the exemption relates to the carrying on of the taxable activity.
(b) Treatment of payments made by unincorporated bodies For the purposes of the RWT rules, a payment that the body makes in the course of carrying on the taxable activity is treated as a payment made by the body and not by a member of the body.

This subsection overrides subsection (7).


Treatment of payments to members of unincorporated bodies For the purposes of the RWT rules, a payment made to a mem- ber of the body in their capacity as a member and in the course of carrying on the taxable activity of the body is treated as a payment made to the body and not to the member.
Joint and several liability for amounts of tax Each member of the body is jointly and severally liable for the RWT that the body is required to pay for as long as the member remains part of the body.
Natural persons, partnerships, joint ventures, trustees For the purposes of subsection (4),— (a) if the member is a natural person, their estate is liable after their death for an amount payable that remains un- paid: if the body is a partnership, joint venture, or the trustees of a trust, a member continues as a member until the date the Commissioner is notiﬁed of a change of mem- bership.
(b) 2688 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RE 30 (6) (7) (8) Members and committees Subsection (7) applies to an unincorporated body other than a partnership, joint venture, or the trustees of a trust, when the business of the body is managed by the members or a commit- tee of its members.
Responsibility of committee ofﬁcers and members If something is required to be done under the RWT rules by or on behalf of the body, each member holding ofﬁce as presi- dent, chair, treasurer, secretary, or a similar ofﬁce is jointly and severally responsible.

In default, each member holding ofﬁce bears the responsibility.

Action taken by 1 ofﬁcer or commit- tee member is sufﬁcient.
Joint and several liability for actions required If something is required to be done under the RWT rules by or on behalf of the body, each member is jointly and severally liable to do it.

However, action taken by 1 member is sufﬁcient.

Subsection (7) overrides this subsection.

Changes in membership (9) A change in membership of the unincorporated body has no effect for the purposes of the RWT rules.

Subsection (5)(b) overrides this subsection.


(10) Some deﬁnitions In this section,— member means a partner, joint venturer, a trustee, or a member of a body.

Deﬁned in this Act: amount, member, partner, partnership, pay, RWT, RWT exemption certiﬁcate, RWT rules, taxable activity, trustee Compare: 2004 No 35 s NF 10 Section RE 30(10) partnership and partner: repealed, on 1 April 2008, by section 22(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Subpart RF—Withholding tax on non-resident passive income (NRWT) Contents RF 1 NRWT rules and their application Introductory provisions Page 2690 2689 Part R s RF 1 Income Tax Act 2007 Reprinted as at 29 May 2012 RF 2 Non-resident passive income 2692 RF 3 Obligation to withhold amounts of tax for non-resident 2694 Withholding obligations passive income RF 4 Non-resident passive income received by agents and others RF 5 When amounts of tax already withheld RF 6 When amounts of tax not withheld or partly withheld Calculating amounts of tax RF 7 General rate for NRWT RF 8 Certain dividends RF 9 When dividends fully imputed or fully credited RF 10 Non-cash dividends RF 11 Dividends paid to companies associated with non-residents RF 11B Certain dividends paid to certain non-residents RF 12 Interest paid by approved issuers or transitional residents RF 12B Interest derived jointly with residents RF 12C Amount derived from non-resident life insurer becoming resident Paying amounts of tax RF 13 Basis for payment of amounts of tax for non-resident passive income RF 14 Treatment of FDP credits RF 15 Commissioner’s power to vary amounts of tax RF 16 Relationship with RSCT rules 2695 2696 2696 2697 2697 2698 2700 2703 2704 2704 2705 2706 2707 2707 2707 2708 Introductory provisions RF 1 NRWT rules and their application Meaning The NRWT rules means— this subpart; and (a) section LB 5 (Tax credits for non-resident withholding (b) tax); and sections LJ 1 to LJ 3, LJ 6, and LJ 7 (which relate to tax credits for foreign income tax); and (c) (1) 2690 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 1 (d) (e) sections LK 1 to LK 5, and LK 7 (which relate to tax credits related to attributed CFC income); and sections 32M, 49, 100, Part 9, and sections 165B and 185 of the Tax Administration Act 1994.
Application The NRWT rules apply to a person who makes a payment that consists of non-resident passive income.

What this section does not apply to This section does not apply to an amount referred to in section CC 1(2)(a) to (d) (Land) to which section CC 9 (Royalties) applies.
(2) (3) Exception: certain income from land (4) Despite subsection (3), this section does apply to non-resident passive income that is an amount paid for— (a) the exploitation of, or right to exploit, plant material or a naturally occurring material or mineral arising in or on the land: the removal of, or right to remove, plant material or a naturally occurring material or mineral arising in or on the land.
(b) Deﬁned in this Act: amount, non-resident passive income, NRWT rules, pay Compare: 2004 No 35 s OB 1 “NRWT rules” Section RF 1(3) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 111(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RF 1(3): added (with effect on 1 April 2008), on 7 December 2009, by section 111(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 1(4) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 111(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RF 1(4): added (with effect on 1 April 2008), on 7 December 2009, by section 111(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 1 list of deﬁned terms amount: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
2691 Part R s RF 2 Income Tax Act 2007 Reprinted as at 29 May 2012 RF 2 Non-resident passive income Interest, certain dividends, and royalties (1) Non-resident passive income means income having a source in New Zealand that a non-resident derives and that consists of— (a) (b) (c) a dividend other than an investment society dividend: a royalty: an investment society dividend when the non-resident is not engaged in business in New Zealand through a ﬁxed establishment in New Zealand: interest when the non-resident is not engaged in busi- ness in New Zealand through a ﬁxed establishment in New Zealand.
(d) Exclusions The following amounts derived by a non-resident are excluded from non-resident passive income: (a) (b) an amount of exempt income: an amount of income to which section CV 17 (Non- resident ﬁlm renters) applies: an amount of excluded income under sections CX 56B and CX 56C (which relate to attributed PIE income), as applicable.
(c) When subsection (4) applies Subsection (4) applies in an income year when a person derives non-resident passive income consisting of— (a) (b) a dividend other than an investment society dividend: a royalty for the use, production, or reproduction of, or for the right to use, produce, or reproduce, a literary, dramatic, musical, or artistic work in which copyright subsists: interest or a royalty derived by a life insurer from a company resident in New Zealand when the interest or royalty is treated as arising as a result of the life insurer’s election under section EY 49 (Non-resident life insurer becoming resident): interest or an investment society dividend when the per- son paying and the person deriving the interest or divi- dend are not associated persons.
(c) (d) (2) (3) 2692 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 2 (4) Final withholding If the person is a ﬁling taxpayer, the schedular income tax liability for the corresponding tax year under section BC 7 (Income tax liability of person with schedular income) for schedular income that is non-resident passive income is de- termined by the amount of tax required to be withheld under this Part.
Exception: minimum amount (5) Despite subsection (4), if a person derives non-resident passive income consisting of interest, investment society dividends, or a royalty other than those described in subsection (3), the person’s income tax liability for the corresponding tax year is the greater of— (a) the sum of the total non-resident withholding tax (NRWT) for which they are liable and the amount that would be their income tax liability for the tax year if they had not derived non-resident passive income in the tax year: the amount that would be their income tax liability in the absence of this subsection.
(b) (6) (7) (8) Company deriving minimum amount For the purposes of subsection (5) for a company, if the total amount of non-resident passive income and other income de- rived by the company in the corresponding tax year is not more than $1,000, the income tax liability of the company for the tax year is the sum referred to in subsection (5)(a).

Application of ﬁnancial arrangements rules The ﬁnancial arrangements rules do not apply to the calcula- tion of an amount of non-resident passive income.
Interest payable by Commissioner For interest payable under Part 7 of the Tax Administration Act 1994, NRWT withheld by the Commissioner is treated as paid on the date it is withheld.

Sections 50, 55, 100, and Part 9 of that Act do not apply to the Commissioner and that interest, but the other provisions of the NRWT rules do apply.
Deﬁned in this Act: amount, amount of tax, associated person, business, Com- missioner, company, dividend, excluded income, exempt income, ﬁling tax- payer, ﬁnancial arrangements rules, ﬁxed establishment, income, income tax liability, interest, investment society dividend, life insurer, New Zealand, non- 2693 Part R s RF 3 Income Tax Act 2007 Reprinted as at 29 May 2012 resident, non-resident passive income, NRWT, NRWT rules, pay, resident in New Zealand, royalty, schedular income, schedular income tax liability, source in New Zealand, tax year Compare: 2004 No 35 ss NG 1(2)–(4), NG 3, NG 4 Section RF 2(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 531(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 2(1): amended, on 21 December 2010, by section 130(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section RF 2(2)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 531(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 2(2)(c): added (with effect on 1 April 2008), on 6 October 2009, by section 531(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 2(2)(c): amended (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 130(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Section RF 2(2)(c): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 531(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 2(5): amended (with effect on 1 April 2008), on 6 October 2009, by section 531(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 2 list of deﬁned terms derived from New Zealand: repealed, on 21 December 2010, by section 130(3)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Section RF 2 list of deﬁned terms excluded income: inserted (with effect on 1 April 2008), on 6 October 2009, by section 531(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 2 list of deﬁned terms source in New Zealand: inserted, on 21 De- cember 2010, by section 130(3)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).

Withholding obligations RF 3 Obligation to withhold amounts of tax for non-resident passive income Withholding amount of tax (1) A person who makes a payment of non-resident passive in- come must withhold the amount of tax for the payment and pay it to the Commissioner.
The obligation to withhold arises under section RA 6(2) (Withholding and payment obligations for passive income) at the time of payment.

2694 Reprinted as at 29 May 2012 Exclusion Income Tax Act 2007 Part R s RF 4 (2) Despite subsection (1), no obligation to withhold NRWT arises in relation to an amount treated as a dividend under section GB 1(3) (Arrangements involving dividend stripping).
Deﬁned in this Act: amount, amount of tax, Commissioner, dividend, non-resi- dent passive income, NRWT, pay Compare: 2004 No 35 s NG 8(1) Section RF 3(1) heading: inserted (with effect on 1 April 2008), on 7 December 2009, by section 112(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3(2) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 112(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RF 3(2): added (with effect on 1 April 2008), on 7 December 2009, by section 112(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3 list of deﬁned terms amount: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RF 3 list of deﬁned terms dividend: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3 list of deﬁned terms NRWT: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).
RF 4 Non-resident passive income received by agents and others (1) (2) When this section applies This section applies when— (a) an agent or other person in New Zealand receives a pay- ment of non-resident passive income on behalf of a per- son entitled to the payment; and some or all of the amount of tax for the payment has not been withheld.
(b) Obligation to withhold: agent or other person The agent or other person must withhold the amount of tax referred to in subsection (1)(b) for the payment and pay it to the Commissioner.

The obligation to withhold arises at the time of receipt.
2695 Part R s RF 5 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Notifying agent or other person If, in the circumstances described in subsection (1)(a), the per- son paying the non-resident passive income has withheld the amount of tax for the payment, they must notify the agent or other person of the amount withheld.

Notiﬁcation must be made at the time the payment is made.
Deﬁned in this Act: amount of tax, Commissioner, New Zealand, non-resident passive income, notify, pay Compare: 2004 No 35 s NG 8(2), (3) RF 5 When amounts of tax already withheld A person is not required to withhold NRWT when some or all of the payment consists of resident passive income to the extent to which the amount of tax has already been collected.
Deﬁned in this Act: amount of tax, non-resident passive income, NRWT, pay, resident passive income Compare: 2004 No 35 s NF 2(6) RF 6 When amounts of tax not withheld or partly withheld Person as ﬁling taxpayer (1) When a person is required under section RA 6(2) (Withhold- ing and payment obligations for passive income) to withhold NRWT and does not withhold the full amount required under this Part, the person deriving the non-resident passive income is treated for this purpose as a ﬁling taxpayer.
When amount treated as dividend (1B) A person who derives non-resident passive income that is a dividend under section GB 1(3) (Arrangements involving divi- dend stripping) is treated as a ﬁling taxpayer.

Debt payable The amount of tax referred to in subsection (1) as not with- held is a debt payable by the person to the Commissioner, and is treated as having become due under section RA 10 (When obligations not met).
Non-cash dividends Subsection (2) applies in relation to a non-cash dividend de- scribed in section RF 10 as if the amount equal to the amount of tax for the dividend were the amount payable.

(2) (3) 2696 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 8 (4) Commissioner’s powers to recover In recovering the amount, the Commissioner may take the steps the Commissioner thinks ﬁt in relation to the person in default or liable to pay, whether or not they are the same per- son.
Deﬁned in this Act: amount, amount of tax, Commissioner, ﬁling taxpayer, non-cash dividend, non-resident passive income, NRWT, pay Compare: 2004 No 35 s NG 13 Section RF 6(1B) heading: inserted (with effect on 1 April 2008), on 7 Decem- ber 2009, by section 113(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 6(1B): inserted (with effect on 1 April 2008), on 7 December 2009, by section 113(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Calculating amounts of tax RF 7 General rate for NRWT (1) When this section applies This section applies to a payment of non-resident passive in- come other than a payment to which sections RF 8 to RF 12 apply.

Calculation of amount of tax The amount of tax is calculated using the formula— (2) payment × 0.15.
Deﬁned in this Act: amount of tax, non-resident passive income, NRWT, pay Compare: 2004 No 35 s NG 2(1)(c) RF 8 Certain dividends (1) When this section applies This section applies when a person makes a payment of non- resident passive income that consists of a dividend, except to the extent to which the payment is— (a) (b) an investment society dividend; or a supplementary dividend under subpart LP (Tax credits for supplementary dividends); or [Repealed] a fully imputed dividend; or an amount of a dividend that is fully credited for FDP; or (c) (d) (e) 2697 Part R s RF 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (f) [Repealed] Calculation of amount of tax The amount of tax is calculated using the formula— (2) dividend payment × 0.3.
Deﬁned in this Act: amount of tax, dividend, FDP, fully imputed, investment society dividend, non-resident passive income, pay, supplementary dividend Compare: 2004 No 35 s NG 2(1)(a) Section RF 8(1)(c): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 128(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 8(1)(f): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 128(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 8 list of deﬁned terms CTR additional dividend: repealed (with effect on 1 July 2011), on 7 May 2012, by section 128(2) of the Taxation (Inter- national Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 8 list of deﬁned terms fully credited for conduit tax relief: repealed (with effect on 1 July 2011), on 7 May 2012, by section 128(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 8 list of deﬁned terms fully imputed: inserted (with effect on 1 April 2008), on 6 October 2009, by section 532 of the Taxation (International Taxa- tion, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RF 9 When dividends fully imputed or fully credited When this section applies This section applies for the purposes of sections RF 8, RF 10, and RF 11B to determine the extent to which a dividend is fully imputed or fully credited for FDP.

Fully imputed The extent to which a dividend is fully imputed is calculated using the formula— (imputation credit amount + supplementary dividend amount) × 1 tax rate tax rate.
Deﬁnition of items in formula In the formula in subsection (2),— (a) imputation credit amount is the amount of an imput- ation credit attached to the dividend: (1) (2) (3) 2698 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 9 (4) (5) (6) (7) (b) (c) supplementary dividend amount is the amount of a supplementary dividend payable under subpart LP (Tax credits for supplementary dividends) for the dividend: tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2, (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the tax year in which the dividend is paid.
Fully credited for FDP The extent to which a dividend is fully credited for FDP is calculated using the formula— FDP credit amount tax rate.

Deﬁnition of items in formula In the formula in subsection (4),— (a) FDP credit amount is the amount of FDP credit at- tached to the dividend: tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2.
(b) Fully credited for conduit tax relief [Repealed] [Repealed] Deﬁnition of item in formula [Repealed] [Repealed] Deﬁned in this Act: amount, dividend, FDP, FDP credit, imputation credit, income tax, pay, supplementary dividend, tax year Compare: 2004 No 35 ss NG 2(3), (4), OB 1 “fully conduit tax relief credited” Section RF 9(1): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 129(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 9(1): amended, on 1 February 2010, by section 114 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RF 9(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 533(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 9(3)(c) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
2699 Part R s RF 10 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RF 9(6) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 9(6): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 9(7) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 9(7): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 129(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 9 list of deﬁned terms fully credited for conduit tax relief: repealed (with effect on 1 July 2011), on 7 May 2012, by section 129(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
RF 10 Non-cash dividends (1) (2) (3) When subsections (2) to (5) apply Subsections (2) to (5) apply when a person makes a payment of non-resident passive income that consists of a non-cash divi- dend to the extent to which the amount is not fully imputed.

When amount not taxable bonus issue The amount of tax, when the payment is not a taxable bonus issue, is calculated using the formula— (rate A (1 A rate × dividend payment) + (rate B × amount paid).
Deﬁnition of items in formula In the formula in subsection (2),— (a) (b) rate A is the rate of tax set out in section RF 8: dividend payment is the amount of the dividend paid to the extent to which the amount of the dividend is not fully imputed or fully credited for FDP, as described in section RF 9(2) and (4), disregarding the amount of tax to be withheld: rate B is the rate set out in section RF 7: (c) 2700 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 10 (4) (5) (d) amount paid is the amount of the dividend paid to the extent to which the amount of the dividend is fully cred- ited for FDP, as described in section RF 9(4), disregard- ing the amount of tax to be withheld.
When amount taxable bonus issue The amount of tax, when the payment is a taxable bonus issue, is calculated using the formula— (rate A × dividend payment) + (rate B × amount paid).
Deﬁnition of items in formula In the formula in subsection (4),— (a) (b) rate A is the rate of tax set out in section RF 8: dividend payment is the amount of the dividend paid calculated under section CD 7(2) or CD 8(3) (which relate to bonus issues)— (i) other than a dividend referred to in the item bonus issue: to the extent to which the amount of the dividend is not fully imputed or fully credited for FDP (as described in sections RF 9 and RF 14), before the amount of tax is withheld: (ii) (c) (d) (e) rate B is the rate of tax set out in section RF 7: amount paid is the amount of the dividend calculated under section CD 7(2) or CD 8(3) together with the amount of an FDP credit attached to the dividend to the extent to which the amount of the dividend is fully cred- ited for FDP, as described in section RF 9(4), before the amount of tax is withheld.
[Repealed] Fully imputed non-cash dividends (5B) When a payment of non-resident passive income consists of a non-cash dividend, the rate of NRWT payable on the amount is 0% to the extent to which the amount is fully imputed.

Amount treated as amount withheld and paid under NRWT rules (6) A person who is liable under this section for NRWT must pay the amount to the Commissioner.
The amount is treated as if it 2701 Part R s RF 10 Income Tax Act 2007 Reprinted as at 29 May 2012 were an amount withheld and paid under the NRWT rules for the purposes of this Act and the Tax Administration Act 1994.
Amount part of dividend [Repealed] [Repealed] Deﬁned in this Act: amount, amount of tax, Commissioner, dividend, FDP, FDP credit, fully imputed, non-cash dividend, non-resident passive income, NRWT, NRWT rules, pay, tax, taxable bonus issue Compare: 2004 No 35 ss NG 2(1)(b)(ii), NG 9 Section RF 10(1) heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 534(1) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 10(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 534(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 10(2) formula: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 534(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 10(3)(a): replaced (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 130(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 10(4) formula: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 10(5)(d): amended (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 130(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 10(5)(e): repealed (with effect on 1 July 2011 and applying for in- come years beginning on or after that date), on 7 May 2012, by section 130(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 10(5B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 534(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 10(5B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 534(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 10(7) heading: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, pursuant to section 130(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 10(7): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 130(4) of (7) 2702 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 11 the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 10 list of deﬁned terms CTR additional dividend: repealed (with effect on 1 July 2011), on 7 May 2012, by section 130(5) of the Taxation (Inter- national Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 10 list of deﬁned terms fully credited for conduit tax relief: re- pealed (with effect on 1 July 2011), on 7 May 2012, by section 130(5) of the Tax- ation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section RF 10 list of deﬁned terms fully imputed: inserted (with effect on 1 April 2008), on 6 October 2009, by section 534(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 10 compare note: amended (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 534(5) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
RF 11 Dividends paid to companies associated with non-residents (1) When this section applies This section applies when— (a) a non-resident formerly held a share in a company (company A) resident in New Zealand; and (b) while the non-resident held the share, company A was (c) (d) associated with the non-resident; and the non-resident has disposed of the share to another company (company B) that is resident in New Zealand and associated with the non-resident; and some or all of the price for which company B acquired the share remains after the acquisition unpaid or ow- ing in any way to the non-resident, whether or not the amount is secured.
Dividend derived (2) While an amount of the price remains unpaid or owing, a divi- dend paid to company B in relation to the share is treated as having been paid to the non-resident and as derived as a divi- dend by the non-resident at the time the dividend is paid.
Deﬁned in this Act: amount, company, dividend, non-resident, pay, resident in New Zealand, share Compare: 2004 No 35 s NG 14 Section RF 11 heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 535(1) of the Taxation (International Taxa- tion, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2703 Part R s RF 11B Income Tax Act 2007 Reprinted as at 29 May 2012 Section RF 11(1)(b): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 535(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 11(1)(c): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 535(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 11 list of deﬁned terms control: repealed, on 1 April 2010, by sec- tion 594 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RF 11B Certain dividends paid to certain non-residents The rate of NRWT payable on a payment of non-resident pas- sive income is 0% to the extent to which the payment is a fully imputed dividend paid to a non-resident by a company, if–– (a) the non-resident has a 10% or more direct voting interest in the company: the non-resident has less than a 10% direct voting inter- est in the company and, but for this section, the post- treaty tax rate for the dividend is less than 15%.
Deﬁned in this Act: company, direct voting interest, dividend, non-resident, non-resident passive income, NRWT, pay, post-treaty tax rate (b) Section RF 11B: inserted, on 1 February 2010, by section 115 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
RF 12 Interest paid by approved issuers or transitional residents When this section applies This section applies in relation to an amount of non-resident passive income that consists of— (a) interest that— (i) is paid by an approved issuer under a registered security; and is derived by a person not associated with the ap- proved issuer except by being a beneﬁciary of a trust established for the main purpose of protect- ing and enforcing beneﬁciaries’ rights under the registered security; and is not a payment to which section RF 12B ap- plies: (ii) (iii) (b) interest that— (1) 2704 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 12B (2) (3) (i) (ii) (iii) (iv) is paid by a transitional resident in relation to money borrowed by them while non-resident; and is not paid in relation to a business carried on through a ﬁxed establishment in New Zealand; and is derived by a person not associated with the transitional resident; and is not a payment to which section RF 12B applies.
Zero-rating The rate of NRWT payable on the amount is 0%.

Interest paid under registered securities For the purposes of the NRWT rules, an amount of interest is paid by an approved issuer under a registered security only if it is treated as paid in relation to a registered security under section 86I of the Stamp and Cheque Duties Act 1971.
Deﬁned in this Act: amount, approved issuer, associated person, business, com- pany, ﬁxed establishment, income, interest, life insurer, New Zealand, non-resi- dent, non-resident passive income, NRWT, NRWT rules, pay, registered secur- ity, resident in New Zealand, transitional resident Compare: 2004 No 35 s NG 2(1)(b)(i), (ib) Section RF 12: substituted (with effect on 1 April 2008), on 6 October 2009, by section 536(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RF 12(1)(a)(ii): replaced (with effect on 1 April 2010), on 7 May 2012 (applying for the 2010–11 and later income years), by section 131(1) of the Tax- ation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section RF 12(3): amended (with effect on 1 April 2008), on 7 December 2009, by section 116 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
RF 12B Interest derived jointly with residents (1) When payment derived jointly with resident If a person makes a payment of non-resident passive income that consists of interest derived by 2 or more persons jointly and at least 1 person deriving the interest is a New Zealand resident, the amount of tax for the payment is calculated using the formula— (tax rate × (interest paid + foreign withholding tax)) foreign withholding tax.
2705 Part R s RF 12C Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) Deﬁnition of items in formula In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D, clause 3 or 4 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): interest paid is the amount of interest paid before the amount of tax is determined: foreign withholding tax is the amount of foreign with- holding tax paid or payable on the amount of interest paid.
(b) (c) Treatment as ﬁling taxpayer For the purposes of this section, the New Zealand resident re- ferred to in subsection (1) is treated as a ﬁling taxpayer.
Deﬁned in this Act: amount, amount of tax, ﬁling taxpayer, foreign withholding tax, interest, New Zealand resident, non-resident passive income, pay Compare: 2004 No 35 s NG 2(1)(ab) Section RF 12B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 536(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RF 12C Amount derived from non-resident life insurer becoming resident When this section applies This section applies when an amount of non-resident passive income is— (a) derived by a life insurer from a company resident in New Zealand; and treated as income as a result of the granting of the in- surer’s application under section EY 49 (Non-resident life insurer becoming resident).

(b) Zero-rating The rate of NRWT payable on the amount is 0%.
Deﬁned in this Act: amount, company, life insurer, New Zealand, non-resident passive income, NRWT, pay, resident in New Zealand Compare: 2004 No 35 s NG 2(1)(b)(iii) Section RF 12C: inserted (with effect on 1 April 2008), on 6 October 2009, by section 536(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(1) (2) 2706 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RF 15 Paying amounts of tax RF 13 Basis for payment of amounts of tax for non-resident passive income (1) (2) (3) When this section applies This section applies when a person estimates for a tax year that they will not be required by the NRWT rules to withhold total NRWT of $500 or more.

Two instalments The person may pay to the Commissioner the amount withheld for the tax year in 2 instalments.
When threshold reached during tax year If the threshold amount of $500 is reached at a time in a tax year, the person must pay to the Commissioner— (a) the amount of tax withheld from the start of the tax year to the end of the month in which the threshold is reached; and for the remainder of the tax year, the amount of tax on a monthly basis.
(b) Deﬁned in this Act: amount of tax, Commissioner, NRWT, NRWT rules, pay, tax withheld, tax year Compare: 2004 No 35 s NG 11(1)–(3) RF 14 Treatment of FDP credits A person who is required under the NRWT rules to withhold NRWT for non-resident passive income consisting of a divi- dend is treated as having withheld the amount of tax to the extent of an amount of an FDP credit attached to the dividend.
Deﬁned in this Act: amount of tax, dividend, FDP credit, non-resident passive income, NRWT, NRWT rules Compare: 2004 No 35 s NG 2(2) RF 15 Commissioner’s power to vary amounts of tax (1) Special circumstances For the purposes of meeting the special circumstances of a case or class of cases, the Commissioner may— (a) relieve a person from an obligation to withhold NRWT under section RA 6(2) (Withholding and payment obli- gations for passive income), RF 3, RF 4, or RF 10; or 2707 Part R s RF 16 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) vary the amount of tax that a person must withhold under section RA 6(2).
(2) Exclusion for certain payments of interest This section does not apply to an amount of tax for a pay- ment of interest derived jointly with a person resident in New Zealand as described in section RF 12(1).

NRWT rules apply as if amended (3) On the exercise of a power under subsection (1), the NRWT rules apply in the particular case as if they were amended in the way in which the power is exercised.
Deﬁned in this Act: amount of tax, Commissioner, interest, NRWT, NRWT rules, pay, resident in New Zealand Compare: 2004 No 35 s NG 10 RF 16 Relationship with RSCT rules When this section applies This section applies when a retirement scheme contributor makes a retirement scheme contribution for a person who is non-resident and pays RSCT for the contribution.
NRWT The contributor is treated as having withheld from the contri- bution an amount of NRWT equal to the lesser of— (a) (b) the amount of RSCT paid: the NRWT payable in relation to the contribution.

Treatment of balance Section LB 6 (Tax credits for RSCT) applies to any balance of RSCT paid.
Deﬁned in this Act: non-resident, NRWT, pay, retirement scheme contribution, retirement scheme contributor, RSCT Compare: 2004 No 35 s NG 16B Section RF 16: added, on 1 April 2008, by section 544 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
(1) (2) (3) 2708 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RG 1 Subpart RG—Payments for foreign dividends (FDP) [Repealed] Subpart RG: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Contents Introductory provisions [Repealed] RG 1 RG 2 FDP rules and their application [Repealed] Foreign dividends [Repealed] Obligation to make payments [Repealed] RG 3 Obligation to pay FDP [Repealed] Calculation of payments [Repealed] RG 4 Calculating amount of FDP [Repealed] Adjustments to payments [Repealed] Page 2709 2710 2710 2710 RG 5 Credit balance in branch equivalent tax account [Repealed] RG 6 Using loss balances [Repealed] RG 7 Reduction of payments for conduit tax relief [Repealed] 2710 2711 2711 Introductory provisions [Repealed] Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RG 1 FDP rules and their application [Repealed] Section RG(1): repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2709 Part R s RG 2 Income Tax Act 2007 Reprinted as at 29 May 2012 RG 2 Foreign dividends [Repealed] Section RG(2): repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Obligation to make payments [Repealed] Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

RG 3 Obligation to pay FDP [Repealed] Section RG 3: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Calculation of payments [Repealed] Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

RG 4 Calculating amount of FDP [Repealed] Section RG 4: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Adjustments to payments [Repealed] Heading: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

RG 5 Credit balance in branch equivalent tax account [Repealed] Section RG 5: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
2710 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RH 1 RG 6 Using loss balances [Repealed] Section RG 6: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
RG 7 Reduction of payments for conduit tax relief [Repealed] Section RG 7: repealed (with effect on 30 June 2009), on 6 October 2009, by section 540(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Subpart RH—Withholding tax on retirement scheme contributions Subpart RH: inserted, on 1 April 2008, by section 545 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Contents RH 1 RSCT rules and their application RH 2 Retirement scheme contributions RH 3 Retirement savings schemes RH 4 Retirement scheme contributors RH 5 Calculating amounts of tax for retirement scheme Calculating amounts of tax contribution RH 6 Calculating amounts of tax on failure to withhold Page 2711 2712 2713 2714 2715 2715 RH 1 RSCT rules and their application (1) Meaning The RSCT rules means— (a) (b) (c) this subpart; and section BE 1(5B) (Withholding liabilities); and section CX 50B (Contributions to retirement savings schemes); and section LB 6 (Tax credits for RSCT); and section LE 7B (Credit of RSCT for imputation credit); and (d) (e) 2711 Part R s RH 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (f) (g) (h) (i) (j) section LO 2B (Credit of RSCT for Maori authority credit); and section MB 1(5B) (Adjustments for calculation of fam- ily scheme income); and section MB 6 (Treatment of distributions from retire- ment savings schemes); and schedule 1, part D, clause 7; and sections 28C and 48B and Part 9 of the Tax Administra- tion Act 1994.
Application The RSCT rules apply to a retirement scheme contributor who makes a retirement scheme contribution.

Deﬁned in this Act: retirement scheme contribution, retirement scheme con- tributor, RSCT rules Compare: 2004 No 35 s OB 1 “RSCWT rules” Section RH 1: inserted, on 1 April 2008, by section 545 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
(2) RH 2 Retirement scheme contributions Contribution for beneﬁt of members (1) A retirement scheme contribution means a contribution in money by a retirement scheme contributor to a retirement sav- ings scheme for the beneﬁt of a person who is a member of, or who has an ownership interest in, the contributor.

(2) (3) Tax credits For the purposes of subsection (1), money includes an amount of an imputation credit or a Maori authority credit.
Determining amount of contribution The amount of a retirement scheme contribution is the sum of— (a) the amount of the contribution received by the retire- ment savings scheme and not withheld under subsection (5) on behalf of the retirement scheme contributor; and the amount of tax for the retirement scheme contribu- tion.
(b) Payment of amount of tax (4) A retirement scheme contributor who pays an amount that rep- resents a retirement scheme contribution must withhold and 2712 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RH 3 (5) pay to the Commissioner the amount of tax for the contribu- tion.

The amount is payable monthly under section RA 15 (Payment dates for interim and other tax payments).
Appointment of agent For the purposes of subsection (4), a contributor may appoint the retirement savings scheme as agent in relation to the cal- culation and payment of the amount of tax.
Deﬁned in this Act: amount, amount of tax, Commissioner, imputation credit, Maori authority credit, retirement savings scheme, retirement scheme contribu- tion, retirement scheme contributor Compare: 2004 No 35 ss NEB 1(2), NEB 2, NEB 3(1)(a), OB 1 “retirement scheme contribution” Section RH 2: inserted, on 1 April 2008, by section 545 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
RH 3 Retirement savings schemes Requirements for entity (1) An entity is a retirement savings scheme for a person if the entity— (a) (b) (c) is a portfolio investment entity; and holds funds from a retirement scheme contribution for the person; and has rules (the distribution rules) governing the distri- bution by the entity of funds in which the person has an interest that— (i) are approved by the Commissioner as fair and reasonable; and (ii) meet the requirements of subsection (2).
(2) Requirements for rules The rules must provide that— (a) (b) the availability of a distribution to the person is re- stricted before the person reaches an age of retirement set out in the rules: the person is not permitted to make a withdrawal before the age of retirement other than a withdrawal— (i) to repay a student loan under the Student Loan Scheme Act 2011: to pay fees and expenses related to tertiary edu- cation: (ii) 2713 Part R s RH 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) (iv) (v) to buy a home if the person does not own one: that the person would be permitted to make if the scheme were a KiwiSaver scheme under the KiwiSaver Act 2006: in the distribution in circumstances set out rules that have been approved under subsection (1)(c)(i): (c) the entity may require the person to provide information to ensure that the requirements relating to a withdrawal are met.
Deﬁned in this Act: Commissioner, income year, portfolio investment entity, retirement savings scheme, retirement scheme contribution, retirement scheme contributor Compare: 2004 No 35 s NEB 5 Section RH 3: inserted, on 1 April 2008, by section 545 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RH 3(2)(b)(i): amended, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
RH 4 Retirement scheme contributors An entity is a retirement scheme contributor for a person for an income year if— the entity is— (a) (i) the trustee of a widely-held trust that is a unit trust: a company other than a close company: a Maori authority; and (ii) (iii) the person is a unit holder, shareholder, or member of the entity: in or before the income year, the entity makes a payment intended to be a retirement scheme contribution for the person.
(b) (c) Deﬁned in this Act: close company, company, income year, Maori author- ity, pay, retirement savings scheme, retirement scheme contribution, retirement scheme contributor, shareholder, trustee, unit holder, unit trust, widely-held trust Compare: 2004 No 35 s NEB 6 Section RH 4: inserted, on 1 April 2008, by section 545 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
2714 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RH 6 Calculating amounts of tax Heading: inserted, on 1 April 2008, by section 545 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

RH 5 Calculating amounts of tax for retirement scheme contribution The amount of tax for a retirement scheme contribution is the amount determined under schedule 1, part D, clause 7 (Basic tax rates: income tax, ESCT, RSCT, RWT, and at- tributed fringe beneﬁts).
Deﬁned in this Act: amount of tax, retirement scheme contribution Compare: 2004 No 35 s NEB 1(1) Section RH 5: inserted, on 1 April 2008, by section 545 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

RH 6 Calculating amounts of tax on failure to withhold (1) When this section applies This section applies when a retirement scheme contributor or retirement savings scheme does not withhold an amount of tax for a retirement scheme contribution under section RH 2(4).
Calculation of amount The amount is calculated using the formula— (2) tax rate tax 1 rate × contribution to scheme – tax already paid.
(3) Deﬁnition of items in formula In the formula,— (a) tax rate is the rate of RSCT for the person set out in schedule 1, part D, clause 7 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts): contribution to scheme is the amount of the retirement scheme contribution received by the retirement savings scheme excluding the amount of tax: tax already paid is any amount of tax for the contribu- tion that has already been paid.
(b) (c) Deﬁned in this Act: amount, amount of tax, retirement savings scheme, retire- ment scheme contribution, retirement scheme contributor, RSCT Compare: 2004 No 35 s NEB 4(1) 2715 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RH 6: inserted, on 1 April 2008, by section 545 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
Subpart RM—Refunds Contents Introductory provision RM 1 What this subpart does Refunds for overpaid amounts RM 2 Refunds for overpaid tax RM 3 Refunds for overpaid FDP RM 4 Overpayment on amended assessment RM 5 Overpayment on income statements RM 6 Refunds after 4-year period ends RM 7 Refunds to PAYE intermediaries RM 8 Overpaid RWT or NRWT RM 9 Calculations for attributed and non-attributed fringe beneﬁts Use of refunds RM 10 Using refund to satisfy tax liability RM 11 Using GST refund to pay instalment of provisional tax RM 12 Reduction in provisional tax liability Limits on refunds and transfers ICA companies RM 13 Limits on refunds for ICA companies RM 14 Limits on refunds when company stops being ICA company RM 15 Changes in credit balances RM 16 Treatment of amounts not refunded RM 17 Treatment of further income tax paid Companies receiving foreign dividends RM 18 Limits on refunds related to foreign dividends RM 19 Treatment of ﬁnancial arrangements RM 20 Treatment of amounts not refunded RM 21 Refunds when loss balances used to reduce net income RM 22 Limits on refunds for Maori authorities Maori authorities 2716 Page 2717 2718 2718 2719 2719 2720 2721 2721 2724 2724 2725 2726 2727 2728 2728 2729 2730 2730 2731 2731 2732 2734 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 1 RM 23 Limits on refunds when Maori authority stops being Maori authority RM 24 Increase in credit balances RM 25 Treatment of amounts not refunded RM 26 Treatment of further income tax paid RM 27 Application when no credits arise Persons with policyholder credit accounts RM 28 Limits on refunds for PCA persons RM 29 Limits on refunds when person no longer PCA person RM 30 Changes in credit balances RM 31 Treatment of amounts not refunded 2735 2736 2736 2737 2737 2737 2738 2738 2738 Qualifying companies RM 32 Application of sections RM 13 to RM 17 to qualifying 2739 companies Certain unit trusts and group investment funds RM 33 Limits on refunds for certain unit trusts and group 2740 investment funds Introductory
 provision RM 1 What this subpart does This subpart establishes and measures a person’s entitlement to a refund for an overpayment under this Part or another Part of this Act, how the amount of the refund may be used, and the limits placed on the amount and use of a refund for— an imputation credit account (ICA) company: (a) a company receiving a foreign dividend: (b) a Maori authority: (c) a policyholder credit account (PCA) person: (d) a qualifying company: (e) certain unit trusts and group investment funds.
(f) Deﬁned in this Act: amount, company, foreign dividend, group investment fund, ICA company, Maori authority, pay, PCA person, qualifying company, unit trust 2717 Part R s RM 2 Income Tax Act 2007 Reprinted as at 29 May 2012 Refunds for overpaid amounts RM 2 Refunds for overpaid tax (1) Amount more than required The Commissioner must refund an amount of tax that a person has paid if— (a) the amount is more than the tax required to be paid by the person under this Part; and the 4-year period for amendment of an assessment under section 108 of the Tax Administration Act 1994 has not ended.
(b) Refundable credits (1B) An amount of tax under subsection (1) includes an amount of a refundable tax credit to which section LA 5(5) (Treatment of remaining credits) applies.

(2) Refunds arising from mistakes Section RM 6 overrides subsection (1).
Deﬁned in this Act: amount of tax, assessment, Commissioner, pay, refundable tax credit, tax Compare: 2004 No 35 s MD 1(1) Section RM 2(1B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 541(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RM 2(1B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 541(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RM 2 list of deﬁned terms refundable tax credit: inserted (with ef- fect on 1 April 2008), on 6 October 2009, by section 541(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RM 3 Refunds for overpaid FDP If a company pays to the Commissioner FDP in relation to a foreign dividend paid to it, and the amount is more than the amount required to be paid under this Part, the Commissioner must refund the overpayment.
Deﬁned in this Act: amount, Commissioner, company, foreign dividend, FDP, pay Compare: 2004 No 35 s NH 4(1) 2718 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 5 RM 4 Overpayment on amended assessment (1) Assessment increasing tax The Commissioner must refund an amount of tax that a person has paid if— (a) the person paid the amount as a result of an amendment to an assessment increasing the amount of tax payable by the person; and the amount is more than the amount required to be paid by the person under this Part; and the 4-year period under section 108 of the Tax Adminis- tration Act 1994 beginning at the end of the income year in which the assessment was amended has not ended.
(b) (c) (2) Refunds arising from mistakes Section RM 6 overrides subsection (1).

Deﬁned in this Act: amount, amount of tax, assessment, Commissioner, income year, pay Compare: 2004 No 35 s MD 1(2) RM 5 Overpayment on income statements (1) When this section applies This section applies when an income statement has been pro- vided to a person and the result is that an amount of tax must be refunded to the person.

For the purposes of this section, the amount of tax must be more than $200.
Refundable credits (1B) An amount of tax under subsection (1) includes an amount of a refundable tax credit to which section LA 5(5) (Treatment of remaining credits) applies.

(2) (3) Refund on conﬁrmation of correctness The Commissioner may refund the amount of tax only after the person has conﬁrmed that the income statement is correct.

Threshold amount The Governor-General may make an Order in Council increas- ing the amount set out in subsection (1).
Deﬁned in this Act: amount of tax, Commissioner, income statement, refund- able tax credit Compare: 2004 No 35 s MD 1(1A) 2719 Part R s RM 6 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RM 5(1B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 542(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RM 5(1B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 542(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RM 5 list of deﬁned terms refundable tax credit: added (with ef- fect on 1 April 2008), on 6 October 2009, by section 542(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RM 6 Refunds after 4-year period ends When this section applies This section applies when a person has overpaid either an amount of tax or FDP, and the 4-year period referred to in sec- tions RM 2(1)(b) and RM 4(1)(c) has ended.

Refund The Commissioner may refund the amount or payment if the refund— (a) (b) arises as described in subsection (3); and is made in the way described in subsection (4).
Cause of refund The refund must arise from— (a) (b) a clear mistake by or simple oversight of the person; or the person’s entitlement to a tax credit under subparts MA to MF and MZ (which relate to tax credits for fam- ilies).
When refund made The refund must be made— (a) (b) within a period of 4 years that starts at the end of the 4-year period referred to in sections RM 2(1)(b) and RM 4(1)(c); and on an application— (i) (ii) made by the person or on their behalf: received by the Commissioner within the further period of 4 years described in paragraph (a).
Deﬁned in this Act: amount of tax, Commissioner, FDP, pay, tax credit Compare: 2004 No 35 ss MD 1(2B), NH 3(7) (1) (2) (3) (4) 2720 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 8 RM 7 Refunds to PAYE intermediaries (1) (2) When this section applies This section applies when a PAYE intermediary pays to the Commissioner an amount of tax for a PAYE income payment for an employer— (a) relying on a payment made to the trust account of the intermediary— by the employer and later dishonoured; or (i) (ii) mistakenly by a person and later recovered from the intermediary: (b) mistakenly from funds not provided by the employer for a purpose related to the PAYE income payment.
Refund to intermediary The Commissioner must refund the amount of tax to the inter- mediary.
Deﬁned in this Act: amount of tax, Commissioner, employer, pay, PAYE inter- mediary, PAYE income payment Compare: 2004 No 35 s NBA 7 RM 8 Overpaid RWT or NRWT (1) (2) When this section applies This section applies when a person is required to withhold and pay to the Commissioner an amount of resident withholding tax (RWT) or non-resident withholding tax (NRWT), and the amount is more than the amount required to be paid under this Part.
Refund to person deriving payment or person withholding amount The Commissioner must refund the amount of the overpay- ment to— (a) the person who derives the payment from which the amount of tax was withheld; or the person who withheld the amount if they have paid the amount of the overpayment to the person deriving the payment and not subtracted the amount under sec- tion RA 12(5) and (6) (Adjustment to correct errors: certain excess amounts).
(b) 2721 Part R s RM 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) (5) (b) (b) (c) When subsections (4) and (5) apply Subsections (4) and (5) apply when— (a) a holder of an attributing interest in a FIF receives a distribution from which an amount of tax for resident passive income has been withheld; and section CD 36 (Foreign investment fund income) ap- plies to the distribution.
Certain FIF income: application by holder The holder may apply for a refund if— (a) they apply before the next 31 March after the date on which the amount was withheld, with supporting in- formation to show that the threshold referred to in sec- tion CQ 5(1)(d) (When FIF income arises) has been ex- ceeded for their corresponding income year; and the person making the distribution has not— paid them a refund of the amount; or (i) applied themselves under subsection (5) for a re- (ii) fund in relation to the amount; and they notify the person making the distribution of their application under this subsection.
Certain FIF income: application by payer The person making the distribution may apply for a refund if— they apply before the next 31 March after the date on (a) which the amount was withheld, with supporting infor- mation to show the payment has been made to the holder without any subtraction permitted by section RA 12(5) and (6) (Adjustment to correct errors: certain excess amounts); and the holder has not applied for a refund under subsec- tion (4) in relation to the amount; and they provide, in relation to the amount,— (i) (b) (c) a statement that they will not include particulars in an RWT withholding reconciliation statement made under section 51 of the Tax Administration Act 1994; and the disclosure information required by section 52 of that Act.
(ii) 2722 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 8 Use of refund (6) An amount of a refund paid under subsection (4) or (5) may be used under section RM 10 to satisfy a liability under the Inland Revenue Acts.
Deﬁned in this Act: amount, amount of tax, attributing interest, Commissioner, corresponding income year, FIF, Inland Revenue Acts, notify, NRWT, pay, resi- dent passive income, RWT Compare: 2004 No 35 ss MD 1(4)(b), (c), NF 7(1), (2), (5), NG 16(1), (1A) Section RM 8(3) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8(3): added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RM 8(4) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8(4): added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RM 8(5) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8(5): added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RM 8(6) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8(6): added (with effect on 1 April 2008), on 7 December 2009, by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RM 8 list of deﬁned terms attributing interest: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8 list of deﬁned terms corresponding income year: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RM 8 list of deﬁned terms FIF: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8 list of deﬁned terms Inland Revenue Acts: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

2723 Part R s RM 9 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RM 8 list of deﬁned terms notify: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).
Section RM 8 list of deﬁned terms resident passive income: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

RM 9 Calculations for attributed and non-attributed fringe beneﬁts (1) (2) When this section applies This section applies when an employer chooses to pay fringe beneﬁt tax (FBT) under sections RD 47 to RD 53 (which relate to attributed fringe beneﬁts and non-attributed fringe beneﬁts).
Result of calculations If the result of the calculations of FBT on attributed fringe beneﬁts or non-attributed fringe beneﬁts is negative, the Com- missioner must refund to the employer an amount equal to the deﬁciency.
Deﬁned in this Act: amount, Commissioner, employer, FBT, pay Compare: 2004 No 35 s ND 10(4)(a) RM 10 Using refund to satisfy tax liability Use of refunds When this section applies This section applies when a person is entitled to a refund of an amount of tax under sections RM 2 and RM 4 to RM 6.

An amount of tax under this section includes an amount of a refundable tax credit under section LA 5(5) (Treatment of remaining credits).
Section LB 4 (Tax credits for families) may apply to adjust the amount available.

Request for particular application The person may ask under section 173T of the Tax Adminis- tration Act 1994 for the Commissioner to apply some or all of the amount on a particular date to satisfy a liability under the Inland Revenue Acts.
(1) (2) 2724 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 11 (3) Commissioner applying refund If no request is made under subsection (2), the Commissioner may apply the amount of the refund to satisfy a liability that the person has under the Inland Revenue Acts.

Exclusion (4) Despite subsection (3), the Commissioner must not apply the amount of a refund under section LA 7 (Remaining refundable credits: tax credits under social policy schemes) or RM 8 to satisfy a liability of the person.
Deﬁned in this Act: amount, amount of tax, Commissioner, Inland Revenue Acts, refundable tax credit Compare: 2004 No 35 ss MD 1(3), (3A), MD 1(4) Section RM 10(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 543(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RM 10(1): amended (with effect on 1 April 2008), on 6 October 2009, by section 543(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RM 10(4): amended (with effect on 1 April 2008), on 6 October 2009, by section 543(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RM 10(4): amended, on 1 April 2008, by section 546 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RM 10 list of deﬁned terms refundable tax credit: added (with ef- fect on 1 April 2008), on 6 October 2009, by section 543(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RM 11 Using GST refund to pay instalment of provisional tax (1) (2) When this section applies This section applies when a person who is liable to pay pro- visional tax has a goods and services tax (GST) refund in a taxable period as a result of the application of section 20(5) of the Goods and Services Tax Act 1985.

Using amount The person may choose to use the amount of the refund to pay some or all of an instalment of provisional tax that is payable on the same instalment date.
2725 Part R s RM 12 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Reduction in amount If the Commissioner amends the assessment reducing the amount of the refund, the person’s payment of provisional tax arising from the GST refund is the reassessed amount.
Deﬁned in this Act: amount, assessment, Commissioner, GST, instalment date, pay, provisional tax, taxable period Compare: 2004 No 35 s MB 11 RM 12 Reduction in provisional tax liability (1) (2) (3) When this section applies This section applies when the amount of provisional tax payable for a tax year is reduced by the person liable to pay the provisional tax, or by the Commissioner under section 119(2) of the Tax Administration Act 1994.
Reduction in amount of provisional tax payable If the person applies in writing for a refund of the amount of provisional tax already paid that is as a result of the reduction more than the amount that would have been payable in relation to earlier instalment dates for the tax year, the Commissioner must— (a) apply the overpayment as the person asks under sec- tion 173T of the Tax Administration Act 1994 or, if no request is made, in a way that the Commissioner de- termines in payment of tax or another amount that is payable by them; and refund any balance of the overpayment.
(b) Reduction in assessment If the person’s residual income tax for the relevant tax year is no more than $2,500, and they apply in writing for the refund of an amount of provisional tax that has been determined under section RC 9 (Provisional tax payable in instalments) and al- ready paid, other than on a ﬁnal instalment, the Commissioner must— (a) apply the amount as the person asks under section 173T of the Tax Administration Act 1994 or, if no request is made, in a way the Commissioner determines in pay- ment of tax or another amount that is payable by them; and refund any balance of the amount.
(b) 2726 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 13 Treatment of amount refunded or credited (4) When an overpayment or amount of provisional tax for a tax year has been applied or refunded under subsection (2) or (3)— (a) a later instalment payable under section RC 10 or RC 11 (which relate to the methods used to calculate the amount of an instalment), as applicable, is calcu- lated as if the total instalments previously payable were reduced by the amount of the overpayment or amount; and the overpayment or amount applied or refunded is, from the date of action taken by the Commissioner, treated as not being provisional tax paid for the tax year.
Deﬁned in this Act: amount, Commissioner, instalment date, pay, provisional tax, residual income tax, tax, tax year Compare: 2004 No 35 s MB 36 (b) Limits on refunds and transfers ICA companies RM 13 Limits on refunds for ICA companies (1) (2) When this section applies This section applies when an ICA company is entitled to— (a) a refund of income tax under sections RM 2 and RM 4 to RM 6; or transfer an amount under section RC 32 (Wholly-owned groups of companies).
(b) Amount of refund or transfer limited The amount of the refund or transfer must be no more than the credit balance of the ICA company in the imputation credit account at the latest of the following dates: (a) (b) the last day of the tax year that has just ended: the last day of a period for which the company is re- quired to ﬁle a return under section 70(1) of the Tax Administration Act 1994: the last day of a period for which the company ﬁled an annual ICA return under section 70(3) of that Act.
(c) 2727 Part R s RM 14 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Time for ﬁling returns Subsection (2) does not apply if the ICA company has an ex- tension of time to ﬁle its annual ICA return for a tax year.

In that case, the total amount refunded or transferred must be no more than the credit balance of the ICA company in its imput- ation credit account on the last day of the tax year to which the ICA return relates.
Deﬁned in this Act: amount, annual ICA return, ICA company, imputation credit account, income tax, tax year Compare: 2004 No 35 s MD 2(1), (1A) RM 14 Limits on refunds when company stops being ICA company (1) (2) When this section applies This section applies when a company stops being an ICA com- pany and is entitled to have a refund or to make a transfer under section RM 13(1) for a tax year in which it was an ICA com- pany.
Limit on amount of refund or transfer The total amount refunded or transferred must be no more than the ﬁnal balance of the imputation credit account arising as a debit under section OB 56 (ICA ﬁnal balance) just before the company stopped being an ICA company.
Deﬁned in this Act: amount, company, ICA company, imputation credit ac- count, tax year Compare: 2004 No 35 s MD 2(2) RM 15 Changes in credit balances Credit balance reduced (1) A credit balance is treated as reduced by the amount of a refund or transfer as described in sections RM 13 and RM 14 that is made earlier in the same tax year.
Credit balance increased (2) A credit balance is treated as increased by an amount equal to a debit to the company’s imputation credit account under sec- tion OB 41 (ICA debit for loss of shareholder continuity) aris- ing after a credit is made to the company’s imputation credit account for an amount that has satisﬁed the company’s income 2728 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 16 tax liability for the tax year and before the date on which the credit balance is to be determined under sections RM 13 and RM 14.
Deﬁned in this Act: amount, company, imputation credit account, income tax liability, tax year Compare: 2004 No 35 s MD 2(3), (4) RM 16 Treatment of amounts not refunded (1) (2) When this section applies This section applies when, through the application of sections RM 13 and RM 14, an overpayment of income tax by a com- pany is not refunded to the company or transferred within a wholly-owned group of companies.
Satisfying liabilities or retained The amount prevented from being a refund or transfer— (a) is applied to satisfy an income tax or provisional tax liability of the company for the tax year of the entitle- ment; and (b) may be used by the company to satisfy an income tax or provisional tax liability for a tax year other than the tax year of entitlement; and is retained in the company’s tax account with the Com- missioner to the extent to which paragraphs (a) and (b) do not apply, whether because the company is liquidated or for another reason.
(c) Credit for provisional tax (3) Despite subsection (2), the amount may be credited on a pro- visional tax instalment date if residual income tax is treated under section 120K of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act.

(4) Relationship with section RZ 6 Section RZ 6 (Limits on refunds: transitional dates) overrides subsection (2)(c).
Deﬁned in this Act: amount, Commissioner, company, income tax, income tax liability, instalment date, liquidation, pay, provisional tax, residual income tax, tax account with the Commissioner, tax year, wholly-owned group of compan- ies Compare: 2004 No 35 s MD 2(5), (5A) 2729 Part R s RM 17 Income Tax Act 2007 Reprinted as at 29 May 2012 RM 17 Treatment of further income tax paid (1) (2) When this section applies This section applies for the purposes of sections RM 2 and RM 4 to RM 6 when a company pays further income tax under sections OB 65 and OB 66 (which relate to further tax payable by ICA companies).
No refund The company is not entitled to a refund of the amount of fur- ther income tax paid which is treated as tax paid to satisfy an obligation yet to arise.
Deﬁned in this Act: amount, company, further income tax, pay Compare: 2004 No 35 s MD 2(6) Companies receiving foreign dividends RM 18 Limits on refunds related to foreign dividends Maximum refund (1) Despite section RM 3, if the overpayment described in that section relates to an earlier tax year, the refund must be no more than the relevant credit balance as follows: (a) (b) (c) for an FDPA company, the credit balance of the com- pany’s FDP account at the end of the tax year that is before the tax year in which the entitlement to the re- fund arises: for an ICA company that is not an FDPA company, the credit balance of the company’s imputation credit ac- count at the end of the tax year that is before that in which the entitlement to the refund arises: for a company described in paragraph (a) or (b) that ends its residence in New Zealand, the credit balance, just before the company stops being resident, of— (i) the company’s imputation credit account arising as a debit under section OC 15 (FDPA overpay- ment of FDP); or the company’s FDP account arising as a debit under section OC 26 (FDPA ﬁnal balance).
(ii) Treatment of amount not refunded If the amount of a company’s overpayment is not refunded because it is more than the maximum allowed under subsection (2) 2730 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 20 (3) (1), the amount may still be used to reduce FDP for a foreign dividend paid to the company.
Reductions in credit balances For the purposes of this section, a credit balance referred to in subsection (1) is treated as reduced by an earlier refund under this section paid to the company in the tax year in which the entitlement to the refund arises.

The refund of income tax under sections RM 13 to RM 17 in the same tax year must be no more than the relevant credit balance.
Deﬁned in this Act: amount, company, FDP, FDP account, FDPA company, foreign dividend, ICA company, imputation credit account, income tax, pay, resident in New Zealand, tax year Compare: 2004 No 35 s NH 4(2), (3) RM 19 Treatment of ﬁnancial arrangements (1) (2) When this section applies This section applies when a company is entitled to a refund of FDP under section CD 50(10) to (13) (Outstanding balances of ﬁnancial arrangements).
Credit balance increased The amount of the company’s credit balance under section RM 18(1) is treated as increased by the amount of a debit in the company’s imputation credit account or FDP account aris- ing under section OB 41 or OC 24 (which relate to imputation debits and FDP debits for loss of shareholder continuity), as applicable, after the date on which the payment was made and before the date on which the credit balance is determined under section RM 18(1).
Deﬁned in this Act: amount, company, FDP, FDP account, foreign dividend, imputation credit account, pay Compare: 2004 No 35 s NH 4(4)(a) RM 20 Treatment of amounts not refunded When this section applies This section applies when, through the application of section RM 18(1), an overpayment is not refunded.
Satisfying liabilities or retained The amount prevented from being a refund is— (1) (2) 2731 Part R s RM 21 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) applied to satisfy an income tax or provisional tax li- ability of the company for the tax year of an entitle- ment to a refund or FDP for a foreign dividend that is payable after the date on which the entitlement to the refund arises; and retained by the Commissioner to the extent to which paragraph (a) does not apply, whether because the com- pany is liquidated or for another reason.
Credit for provisional tax (3) Despite subsection (2), the amount may be credited on a pro- visional tax instalment date if residual income tax is treated under section 120KE(5) to (7) of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act.
Deﬁned in this Act: amount, Commissioner, company, foreign dividend, FDP, income tax liability, instalment date, liquidation, pay, provisional tax, residual income tax, tax year Compare: 2004 No 35 s NH 4(4)(b) RM 21 Refunds when loss balances used to reduce net income When subsection (2) applies Subsection (2) applies when a company that is liable to pay FDP to the Commissioner has a loss balance that may be used under sections IA 2 to IA 9 (which relate to the treatment of tax losses) to reduce its net income for the income year in which the foreign dividend is paid.
Refund The company is entitled to a refund of an amount equal to the least of the following, as applicable: (a) the amount of FDP that the company pays in the income year in which the foreign dividend is paid; or the amount of the loss balance multiplied by the basic rate of income tax set out in schedule 1, part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) for the income year in which the foreign dividend is paid; or the credit balance of the company’s FDP account at the end of the tax year that has just ended.
(b) (c) (1) (2) 2732 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 21 (3) (4) Group company’s tax loss This section also applies, treating the group of companies as the company, when— (a) a company (group company A) pays FDP to the Com- missioner; and another company (group company B) that is part of the same group of companies as group company A, has a tax loss for the income year in which the foreign dividend is paid or an earlier income year that may be used under sections IA 2 to IA 9 to reduce the net income of group company A; and group company B makes the tax loss available so that group company A is able to get a refund of some or all of the payment.
(b) (c) Application and return requirements For this section to apply,— (a) the company must apply to the Commissioner in writ- ing; and the company must meet the return requirements of sec- tion 71B of the Tax Administration Act 1994 for the income year in which the dividend is paid; and if group company B’s tax loss is used, group company B must make an election to use the tax loss in writing.
(b) (c) Reduction in tax loss (5) When a refund is paid under this section, the amount of tax loss is reduced by an amount calculated using the formula— refund tax rate.

(6) Deﬁnition of items in formula In the formula,— (a) (b) refund is the amount of the refund paid to group com- pany A under this section: tax rate is the basic rate of income tax set out in sched- ule 1, part A, clause 2 for the income year that corres- ponds to the tax year referred to in subsection (2)(c).
2733 Part R s RM 22 Income Tax Act 2007 Reprinted as at 29 May 2012 Late payment penalties (7) Group company A is entitled to a refund of a late payment penalty imposed under section 139B of the Tax Administration Act 1994 in relation to the failure to pay the amount that is refunded.
Deﬁned in this Act: amount, Commissioner, company, corresponding income year, foreign dividend, FDP, FDP account, group of companies, income tax, income year, loss balance, net income, pay, tax loss, tax year Compare: 2004 No 35 s NH 4(5), (6) Section RM 21(2)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
RM 22 Limits on refunds for Maori authorities Maori authorities When this section applies This section applies when a Maori authority is entitled to a refund of income tax under sections RM 2 and RM 4 to RM 6.
Amount of refund limited The amount of the refund must be no more than the credit balance of the Maori authority in the Maori authority credit account at the latest of the following dates: (a) (b) the last day of the tax year that has just ended: the last day of a period for which the Maori authority is required to ﬁle a return under section 70B(1) of the Tax Administration Act 1994: the last day of a period for which the Maori authority ﬁles a Maori authority credit account return under sec- tion 70B(3) of that Act.
(c) Time for ﬁling returns Subsection (2) does not apply if the Maori authority has an extension of time to ﬁle its Maori authority credit account re- turn for a tax year, and ﬁles the return with the extended time.

In that case, the total amount refunded must be no more than the credit balance of the Maori authority in its Maori author- ity credit account on the last day of the tax year to which the return relates.
(1) (2) (3) 2734 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 23 (4) Satisfying liabilities or retained If the Maori authority has a refund of income tax, and an amount paid in excess is not refunded because of the applica- tion of subsection (2) or section RM 23, the amount prevented from being a refund or transfer— (a) is used to satisfy an income tax or provisional tax liabil- ity of the Maori authority for the tax year of the entitle- ment; and (b) may be used by the Maori authority to satisfy an income tax or provisional tax liability for a tax year other than the tax year of entitlement; and is retained in the authority’s tax account with the Com- missioner to the extent to which paragraphs (a) and (b) do not apply.
(c) Credit for provisional tax (5) Despite subsection (4), the amount may be credited on a pro- visional tax instalment date if residual income tax is treated under section 120K of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act.

(6) Relationship with section RZ 6 Section RZ 6 (Limits on refunds: transitional dates) overrides subsection (4)(b).
Deﬁned in this Act: amount, income tax, income tax liability, instalment date, Maori authority, Maori authority credit account, Maori authority credit account return, provisional tax, residual income tax, tax account with the Commissioner, tax year Compare: 2004 No 35 s MD 2B(1), (1B) RM 23 Limits on refunds when Maori authority stops being Maori authority (1) (2) When this section applies This section applies when a Maori authority stops being a Maori authority and is entitled to a refund under sections RM 2 or RM 4 to RM 6 for a tax year in which it maintained a Maori authority credit account.
Limit on amount of refund The amount refunded must be no more than the ﬁnal balance of the Maori authority credit account arising as a debit under 2735 Part R s RM 24 Income Tax Act 2007 Reprinted as at 29 May 2012 section OK 18 (MACA ﬁnal balance) just before the Maori authority stopped being a Maori authority.
Deﬁned in this Act: amount, Maori authority, Maori authority credit account, tax year Compare: 2004 No 35 s MD 2B(2) RM 24 Increase in credit balances A credit balance is treated as increased by an amount equal to a debit to the Maori authority credit account under section OK 15 (MACA debit for loss of shareholder continuity) arising after the date of payment of instalment B set out in schedule 3, part A (Payment of provisional tax and terminal tax) for the authority’s income year that corresponds to the tax year and before the date on which the credit balance is to be determined under sections RM 22 and RM 23.
Deﬁned in this Act: amount, corresponding income year, Maori authority credit account, pay, tax year Compare: 2004 No 35 s MD 2B(3) RM 25 Treatment of amounts not refunded (1) (2) When this section applies This section applies when, through the application of sections RM 22 and RM 23, an overpayment of income tax by a Maori authority is not refunded to the authority.
Satisfying liabilities or retained The amount prevented from being a refund is— (a) applied to satisfy an income tax or provisional tax li- ability of the Maori authority for the tax year of the en- titlement; and retained by the Commissioner to the extent to which paragraph (a) does not apply.
(b) Credit for provisional tax (3) Despite subsection (2), the amount may be credited on a pro- visional tax instalment date if residual income tax is treated under section 120K of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act.
Deﬁned in this Act: amount, Commissioner, income tax, income tax liability, instalment date, Maori authority, pay, provisional tax, residual income tax Compare: 2004 No 35 s MD 2B(4), (4B) 2736 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 28 RM 26 Treatment of further income tax paid (1) (2) When this section applies This section applies for the purposes of sections RM 2 and RM 4 to RM 6 when a Maori authority pays further income tax under section OK 21 or OK 22 (which relate to further income tax for closing debit balance or when Maori authority stops being a Maori authority).
No refund The authority is not entitled to a refund of the amount of fur- ther income tax paid which is treated as tax paid to satisfy an obligation yet to arise.

Deﬁned in this Act: amount, further income tax, Maori authority, pay, tax Compare: 2004 No 35 s MD 2B(5) RM 27 Application when no credits arise Sections RM 22 to RM 26 do not apply in relation to an amount of tax paid for which no credit arises under section OK 2 (MACA payment of tax).
Deﬁned in this Act: amount, amount of tax, pay Compare: 2004 No 35 s MD 2B(6) Persons with policyholder credit accounts RM 28 Limits on refunds for PCA persons (1) (2) When this section applies This section applies when a PCA person is entitled to a refund of income tax under sections RM 2 and RM 4 to RM 6.
Amount of refund limited The amount of the refund must be no more than the credit balance of the PCA person in the policyholder credit account at the latest of the following dates: (a) (b) the last day of the tax year that has just ended: the last day of a period for which the person is required to ﬁle a return under section 66(4) of the Tax Adminis- tration Act 1994: 2737 Part R s RM 29 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) the last day of a period for which the person ﬁles an annual PCA return under section 66(5) of that Act.
Deﬁned in this Act: amount, annual PCA return, income tax, PCA person, pol- icyholder credit account, tax year Compare: 2004 No 35 s MD 3(1) RM 29 Limits on refunds when person no longer PCA person (1) (2) When this section applies This section applies when a person stops being a PCA person and is entitled to a refund as described in section RM 28(1) for a tax year in which they were a PCA person.
Limit on amount of refund The amount refunded must be no more than the ﬁnal balance of the policyholder credit account just before the person stopped being a PCA person.

Deﬁned in this Act: amount, PCA person, PCA return, policyholder credit ac- count, return, tax year Compare: 2004 No 35 s MD 3(2) RM 30 Changes in credit balances A credit balance is treated as reduced by the amount of an ear- lier refund paid to the person during the same tax year within the limits imposed by sections RM 28 and RM 29.
Deﬁned in this Act: amount, pay, tax year Compare: 2004 No 35 s MD 3(3) RM 31 Treatment of amounts not refunded When this section applies This section applies when, through the application of sections RM 28 and RM 29, an overpayment of income tax by a PCA person is not refunded to the person.
Satisfying liabilities or retained The amount prevented from being a refund— (a) is used to satisfy an income tax or provisional tax liabil- ity of the person for the tax year of the entitlement; and (b) may be used by the person to satisfy an income tax or provisional tax liability for a tax year other than the tax year of entitlement; and (1) (2) 2738 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 32 (c) retained in the person’s tax account with the Commis- sioner to the extent to which paragraphs (a) and (b) do not apply.
Credit for provisional tax (3) Despite subsection (2), the amount may be credited on a pro- visional tax instalment date if residual income tax is treated under section 120K of the Tax Administration Act 1994 as payable on the date set out in Part 7 of that Act.

(4) Relationship with section RZ 6 Section RZ 6 (Limits on refunds: transitional dates) overrides subsection (2)(c).
Deﬁned in this Act: amount, Commissioner, income tax, income tax liability, instalment date, pay, PCA person, provisional tax, residual income tax, tax ac- count with the Commissioner, tax year Compare: 2004 No 35 s MD 3(4) Qualifying companies RM 32 Application of sections RM 13 to RM 17 to qualifying companies Sections RM 13 to RM 17 do not apply to an overpayment of tax by a qualifying company that may be refunded to or allocated by the company unless— (a) the overpayment was made as part of or under an ar- rangement— (i) to obtain a tax advantage of a kind referred to in section GB 35 (Imputation arrangements to obtain tax advantage); or to avoid a tax liability of a shareholder under this Act; and (ii) (b) the arrangement, or a part of it, was based on the com- pany’s ability to obtain a refund of tax that the company would have under those sections in the absence of this section.
Deﬁned in this Act: arrangement, pay, qualifying company, shareholder, tax advantage Compare: 2004 No 35 s MD 2(7) 2739 Part R s RM 33 Income Tax Act 2007 Reprinted as at 29 May 2012 Certain unit trusts and group investment funds RM 33 Limits on refunds for certain unit trusts and group investment funds When this section applies This section applies when a public unit trust or group invest- ment fund— (a) is entitled to a refund under sections RM 2 or RM 4 to RM 6; and goes into liquidation or chooses to become a portfolio investment entity; and at the time of the liquidation or election, has— (i) a credit balance in its available subscribed capital (ASC) account on liquidation; and a zero balance in its imputation credit account.
(ii) (b) (c) Calculating amount of refund The refund must be no more than an amount calculated using the formula— ASC credit balance × maximum imputation ratio.
Deﬁnition of items in formula In the formula,— (a) ASC credit balance is the credit balance in the ASC ac- count of the public unit trust or group investment fund, as applicable: (b) maximum imputation ratio is the maximum permitted ratio calculated under section OA 18(2) (Calculation of maximum permitted ratios), read as if the words “in which the dividend or distribution is paid” in subsection (3) were “in which the liquidation occurs or the election is made”.
Deﬁned in this Act: amount, ASC account, group investment fund, imputation credit account, liquidation, maximum permitted ratio, portfolio investment en- tity, public unit trust Compare: 2004 No 35 s MD 2A (1) (2) (3) 2740 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RM 33 Subpart RP—Intermediaries Contents Introductory provision RP 1 What this subpart does PAYE intermediaries Obligations and treatment of PAYE intermediaries PAYE intermediaries RP 2 RP 3 Requirements for listed PAYE intermediaries RP 4 RP 5 RP 6 Operation of PAYE intermediaries’ trust accounts Payment of subsidies to certain PAYE intermediaries Subsidy claims Employers’ responsibilities RP 7 General responsibilities of employers RP 8 Information required from employers RP 9 Authorised transfers from accounts RP 10 When transfers from accounts not authorised RP 11 Employer’s superannuation cash contributions RP 12 When payments made directly to employees PAYE intermediaries’ responsibilities RP 13 General responsibilities of PAYE intermediaries RP 14 Collection, payment, and information requirements RP 15 When employers have authorised transfers from accounts RP 16 Obligations for employer’s superannuation contributions Tax pooling intermediaries RP 17 Tax pooling intermediaries RP 17B Tax pooling accounts and their use RP 18 Deposits in tax pooling accounts RP 19 Transfers from tax pooling accounts RP 19B Transfers for certain expected tax liabilities RP 20 Declining, amending, or reversing transfers RP 21 Refunds from tax pooling accounts Page 2742 2742 2743 2743 2745 2745 2747 2747 2748 2748 2749 2750 2750 2751 2751 2752 2752 2753 2758 2760 2761 2763 2764 2741 Part R s RP 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Introductory provision RP 1 What this subpart does This subpart establishes the obligations of PAYE intermediar- ies and tax pooling intermediaries in relation to the collection and payment of tax and the provision of information, and sets out the requirements for the operation of their respective ac- counts.
Deﬁned in this Act: intermediary, pay, PAYE intermediary, tax Compare: 2004 No 35 s MBA 1 PAYE intermediaries Obligations and treatment of PAYE intermediaries RP 2 PAYE intermediaries Transferring obligations (1) An employer may arrange to transfer their pay-as-you-earn (PAYE) and employer’s superannuation contribution tax (ESCT) obligations to a person approved under section 15D or 15G of the Tax Administration Act 1994 as a PAYE inter- mediary or a listed PAYE intermediary.
Paying amounts of tax and ﬁling returns (2) A PAYE intermediary or listed PAYE intermediary must, on behalf of an employer who has transferred an obligation to them under subsection (1),— (a) withhold and pay to the Commissioner the amount of tax for a payment under the PAYE rules and the ESCT rules; and ﬁle a return of income relating to the payment and the amount of tax for the payment.
(b) When person no longer intermediary (3) A person who stops being a PAYE intermediary or a listed PAYE intermediary for an employer has the rights and obliga- tions under the PAYE rules and ESCT rules of a PAYE inter- mediary or listed PAYE intermediary, as applicable, in relation to funds that— (a) the employer pays to the person as intermediary; and 2742 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 4 (b) the person holds at the time they stop being an inter- mediary.
Deﬁned in this Act: amount of tax, Commissioner, employer, ESCT, ESCT rules, listed PAYE intermediary, pay, PAYE, PAYE intermediary, PAYE rules, return of income Compare: 2004 No 35 ss NBA 1, NBA 8, NBB 7(3) RP 3 Requirements for listed PAYE intermediaries For a period in which a person remains a listed PAYE inter- mediary, they must— (a) continue to qualify under section 15D of the Tax Ad- ministration Act 1994 as a PAYE intermediary; and (b) meet all the obligations under this subpart of a PAYE (c) (d) intermediary; and continue to meet the requirements of section 15F of the Tax Administration Act 1994; and operate technology systems to enable them to return by electronic means a subsidy claim form that contains a correct calculation of the amount of a subsidy under section RP 5 and section 15M of the Tax Administration Act 1994.
Deﬁned in this Act: amount, listed PAYE intermediary, PAYE intermediary, subsidy claim form Compare: 2004 No 35 s NBB 3 RP 4 Payment of subsidies to certain PAYE intermediaries (1) Requirements for payment of subsidy The Commissioner may pay a subsidy to a listed PAYE inter- mediary for a payroll service that they provide to an employer to whom section RD 22(3) or (4) (PAYE income payment forms for amounts of tax paid to Commissioner) applies if the listed PAYE intermediary— (a) has a contract with the employer to provide the services; and has met their obligations under sections RP 13 to RP 16; and ﬁles a correct subsidy claim form under section 15M of the Tax Administration Act 1994.
(b) (c) 2743 Part R s RP 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Notiﬁcation requirements If a subsidy under subsection (1) is paid to a listed PAYE inter- mediary, the Commissioner must notify the intermediary of the following matters within 14 days of the date of the payment: the amount of the subsidy paid in relation to each em- (a) ployer; and the period to which the subsidy relates; and other information that may be relevant to the payroll ser- vices provided as the Commissioner considers appropri- ate.
(b) (c) Calculating amount of subsidy The listed PAYE intermediary must calculate the amount of the subsidy in the manner provided by regulations made under this section.

Paying amount of subsidy The Commissioner must pay the amount of the subsidy within 30 days of receiving the last of— (a) the employer monthly schedule to which the subsidy claim form relates: the payment of the amounts of tax for a PAYE income payment to which the subsidy claim form relates: the subsidy claim form.
(b) (c) Bank accounts The Commissioner must pay the subsidy to a bank account nominated by the listed PAYE intermediary for the purpose or, if an overpayment has been made to the listed PAYE inter- mediary, to the listed PAYE intermediary’s bank account.
Prescribing amount of subsidy The Governor-General may from time to time by Order in Council prescribe the amount of the subsidy to be paid for an employee of an employer who contracts the services of a listed PAYE intermediary under section 15J of the Tax Administra- tion Act 1994.
Deﬁned in this Act: amount, amount of tax, Commissioner, employee, em- ployer, employer monthly schedule, listed PAYE intermediary, pay, PAYE in- come payment, subsidy claim form Compare: 2004 No 35 ss NBB 1, NBB 6 (2) (3) (4) (5) (6) 2744 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 6 RP 5 Subsidy claims (1) (2) When this section applies This section applies when a listed PAYE intermediary ﬁles a subsidy claim form under section 15M of the Tax Adminis- tration Act 1994 and the Commissioner amends the details to correct an error.
Overpaid or underpaid amounts If an overpayment or underpayment results from the amend- ment, the intermediary or Commissioner, as applicable, must pay the amount overpaid or underpaid within 30 days of the date of notice under section 15M(3) of that Act.
Using overpayment to pay subsidy (3) Despite subsection (2), the Commissioner may choose to use the amount of an overpayment resulting from an amendment to pay a subsidy claim made after the end of the 14-day period referred to in section 15M(3) of that Act.
Deﬁned in this Act: amount, Commissioner, listed PAYE intermediary, pay, subsidy claim form Compare: 2004 No 35 s NBB 5(4), (5) RP 6 Operation of PAYE intermediaries’ trust accounts Nature of account (1) A PAYE intermediary’s trust account must be named as a trust account and established at a registered bank within the mean- ing of the Reserve Bank of New Zealand Act 1989.
(2) Deposits The deposits to the account consist of— (a) (b) a payment of gross salary or wages paid by an employer: an amount of employer’s superannuation cash contribu- tion paid by an employer: an amount of tax for a payment of salary or wages re- quired under the PAYE rules and ESCT rules, or made under section RP 12: an amount of a refund made by the Commissioner under section RM 7 (Refunds to PAYE intermediaries): interest on the amount of the funds in the trust account.
(c) (d) (e) Withdrawals The withdrawals from the account consist of— (3) 2745 Part R s RP 6 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) (d) (e) a payment of net salary or wages to an employee: an amount of employer’s superannuation cash contribu- tion paid by an employer: an amount of tax for a payment of salary or wages with- held under section RP 12: a payment that an employer would be required to make but for the arrangement with the PAYE intermediary, in relation to an amount of tax for a payment of salary or wages to an employee or an employer’s superannuation cash contribution made on behalf of an employee: interest on the amount of the funds in the trust account.
Payments held on trust (4) A payment relating to an employee that is credited to the trust account of a PAYE intermediary is held by the PAYE inter- mediary on trust for the beneﬁt of the employee and the Com- missioner according to their respective rights and obligations.

Interest Interest earned in the trust account of a PAYE intermediary by a payment that relates to an employee is held beneﬁcially by the PAYE intermediary.
Deﬁned in this Act: amount, amount of tax, Commissioner, employee, em- ployer, employer’s superannuation cash contribution, ESCT rules, gross, inter- est, pay, PAYE intermediary, PAYE rules, salary or wages Compare: 2004 No 35 s NBA 6 Section RP 6(2)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 544(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 6(3)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 544(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 6(3)(d): amended (with effect on 1 April 2008), on 6 October 2009, by section 544(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 6 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 544(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 6 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 544(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(5) 2746 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 8 Employers’ responsibilities RP 7 General responsibilities of employers (1) (2) (3) When this section applies This section applies when an employer who meets the require- ments of sections RP 8 to RP 11 arranges to transfer their PAYE obligations in relation to an employee and a pay period to a PAYE intermediary.

PAYE liabilities The employer is not liable under the PAYE rules in relation to the employee and the pay period.
However, the employer remains liable for the payment to the employee of the salary or wages for the pay period.

ESCT liabilities If the PAYE intermediary assumes the employer’s obligations under the ESCT rules, the employer is not liable under the ESCT rules in relation to the employee and the pay period.

However, the employer remains liable for the payment to the employee of the employer’s superannuation cash contribution made on the employee’s behalf.
Deﬁned in this Act: employee, employer, employer’s superannuation cash con- tribution, ESCT rules, pay period, PAYE, PAYE intermediary, PAYE rules, salary or wages Compare: 2004 No 35 s NBA 4(2), (3) Section RP 7(3): amended (with effect on 1 April 2008), on 6 October 2009, by section 545(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 7 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 545(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 7 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 545(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RP 8 Information required from employers An employer must— (a) keep a record of— (i) the gross salary or wages of an employee for a pay period; and 2747 Part R s RP 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) (iii) (iv) the amounts of tax withheld by the employer for the pay period; and the amount of any payroll donations for the pay period; and the amount of any tax credit under section LD 4 (Tax credits for payroll donations); and (b) provide information a PAYE intermediary seeks in the time agreed by the employer and PAYE intermediary.
Deﬁned in this Act: amount of tax, employee, employer, gross, pay period, PAYE intermediary, salary or wages, tax withheld Compare: 2004 No 35 s NBA 4(1B) Section RD 8(a)(iii): added, on 6 January 2010, by section 546 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RD 8(a)(iv): added, on 6 January 2010, by section 546 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RP 9 Authorised transfers from accounts (1) (2) When this section applies This section applies when an employer has authorised the PAYE intermediary to direct the transfer of an amount from the employer’s bank account to meet an obligation that the PAYE intermediary has on the employer’s behalf in relation to an employee and a pay period.

Sufﬁcient funds The employer must ensure, at a time ﬁxed by the PAYE inter- mediary, that the bank account has sufﬁcient funds available for the transfer.
Deﬁned in this Act: amount, employee, employer, pay period, PAYE intermedi- ary Compare: 2004 No 35 s NBA 4(1)(a) RP 10 When transfers from accounts not authorised Employer to pay amount of tax to trust account If an employer has not authorised a PAYE intermediary to di- rect the transfer of funds as described in section RP 9, and the employer pays salary or wages directly to an employee for a pay period under section RP 12, the employer must pay the (1) 2748 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 11 (2) amount of tax for the payment required under the PAYE rules and ESCT rules into the PAYE intermediary’s trust account.
Employer to pay salary or wages to trust account If the employer has not authorised the PAYE intermediary to direct the transfer of funds as described in section RP 9, and subsection (1) does not apply, the employer must pay the amount of the employee’s gross salary or wages for the pay period into the PAYE intermediary’s trust account.

However, the employer may retain an amount lawfully owed to them by the employee before making the payment.
Deﬁned in this Act: amount, amount of tax, employee, employer, ESCT rules, pay, pay period, PAYE intermediary, PAYE rules, salary or wages Compare: 2004 No 35 s NBA 4(1)(b)(i), (ii) RP 11 Employer’s superannuation cash contributions If a PAYE intermediary has assumed the obligations of an em- ployer under the ESCT rules in relation to an employee and a pay period, the employer must pay the amount of the em- ployer’s superannuation cash contribution made in the pay period on behalf of the employee into the PAYE intermedi- ary’s trust account.
Deﬁned in this Act: amount, employee, employer, employer’s superannuation cash contribution, ESCT rules, pay, pay period, PAYE intermediary Compare: 2004 No 35 s NBA 4(1)(b)(iii) Section RP 11 heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 547(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 11: amended (with effect on 1 April 2008), on 6 October 2009, by section 547(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 11 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 547(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 11 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 547(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2749 Part R s RP 12 Income Tax Act 2007 Reprinted as at 29 May 2012 RP 12 When payments made directly to employees Despite sections RP 9 and RP 10, an employer may pay an employee’s salary or wages directly to the employee in the following circumstances: (a) the payment is made on a day in a pay period that is not the usual day for a payment of salary or wages for the pay period; and the payment is— (i) (ii) an advance of the employee’s salary or wages: salary or wages owed to the employee for an ear- lier pay period: a payment on the termination of the employee’s employment; and (iii) the employer withholds for the salary or wages of the employee the amount of tax that would be required under the PAYE rules and the ESCT rules if the em- ployer did not have an arrangement with a PAYE inter- mediary; and the employer pays the amount referred to in paragraph (c) in the way described in sections RP 9 to RP 11.
(b) (c) (d) Deﬁned in this Act: amount of tax, arrangement, employee, employer, employ- ment, ESCT rules, pay, pay period, PAYE rules, salary or wages Compare: 2004 No 35 s NBA 4(4) PAYE intermediaries’ responsibilities RP 13 General responsibilities of PAYE intermediaries When this section applies This section applies when a PAYE intermediary assumes the PAYE and ESCT obligations in relation to an employee and a pay period that an employer would have under those rules in the absence of section RP 2(1).
No liability as employer The PAYE intermediary does not become liable as an employer for the payment to the employee of the salary or wages for the pay period, or for the payment of an employer’s superannu- ation cash contribution made on behalf of the employee.
Deﬁned in this Act: employee, employer, employer’s superannuation cash con- tribution, ESCT, pay, pay period, PAYE, PAYE intermediary, salary or wages Compare: 2004 No 35 s NBA 5(1), (2) (1) (2) 2750 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 15 Section RP 13(2): amended (with effect on 1 April 2008), on 6 October 2009, by section 548(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 13 list of deﬁned terms employer’s superannuation cash contri- bution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 548(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 13 list of deﬁned terms employer’s superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 548(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RP 14 Collection, payment, and information requirements A PAYE intermediary must— (a) calculate and withhold the amount of tax for a payment of salary or wages, and pay the amount to the Commis- sioner by electronic means and in the format required; and transfer the amount of any payroll donation to the rele- vant recipient within the period described in section 24Q of the Tax Administration Act 1994; and provide an employer monthly schedule to the Commis- sioner by electronic means and in the format required; and provide a PAYE income payment form to the Commis- sioner if required; and keep the records referred to in section 24 of the Tax Administration Act 1994.
(ab) (b) (c) (d) Deﬁned in this Act: amount of tax, Commissioner, employer monthly schedule, pay, PAYE income payment form, PAYE intermediary, salary or wages Compare: 2004 No 35 s NBA 5(1) Section RP 14(ab): inserted, on 6 January 2010, by section 549 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
RP 15 When employers have authorised transfers from accounts If a PAYE intermediary has been given an authorisation by an employer under section RP 2(1), the intermediary must direct that, at or before the time of the transfer of the payment of salary or wages, an amount equal to the amount of tax for 2751 Part R s RP 16 Income Tax Act 2007 Reprinted as at 29 May 2012 the payment required under the PAYE rules and ESCT rules is transferred to— (a) (b) the Commissioner; or the trust account established by the PAYE intermediary and identiﬁed in the employer’s notice under section 15J of the Tax Administration Act 1994.
Deﬁned in this Act: amount, amount of tax, Commissioner, employer, ESCT rules, notice, pay, PAYE intermediary, PAYE rules, salary or wages Compare: 2004 No 35 s NBA 5(1B) RP 16 Obligations for employer’s superannuation contributions When section RP 11 applies, the PAYE intermediary assumes the obligations under the ESCT rules in relation to the em- ployee and the pay period that the employer would have in the absence of section RP 2(1).
Deﬁned in this Act: employee, employer, ESCT rules, pay period, PAYE inter- mediary Compare: 2004 No 35 s NBA 5 Tax pooling intermediaries RP 17 Tax pooling intermediaries Meeting person A’s obligations (1) A person (person A) may ask a person who maintains a tax pooling account to act as a tax pooling intermediary between person A and the Commissioner in using funds in the tax pool- ing account to meet an obligation of person A to pay provi- sional tax, terminal tax, or an increase in an assessment of tax as described in section RP 17B(3).
Person A and group companies For the purposes of this section, if person A is a company in a group of companies, person A also includes the other com- panies that are in the group at the time— (a) an amount is deposited in a tax pooling account under section RP 18; and as applicable,— (i) is used or transferred under section RP 17B: (b) (2) 2752 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 17B (ii) is transferred under section RP 19.
Deﬁned in this Act: amount, Commissioner, company, group of companies, intermediary, provisional tax, tax pooling account Compare: 2004 No 35 s MBA 2 Section RP 17: amended (with effect on 1 April 2009), on 6 October 2009, by section 550 of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 (2009 No 34).

Section RP 17(1) heading: inserted, on 29 August 2011, by section 125(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17(2) heading: added, on 29 August 2011, by section 125(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17(2): added, on 29 August 2011, by section 125(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17 list of deﬁned terms amount: inserted, on 29 August 2011, by section 125(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17 list of deﬁned terms company: inserted, on 29 August 2011, by section 125(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17 list of deﬁned terms group of companies: inserted, on 29 Au- gust 2011, by section 125(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
RP 17B Tax pooling accounts and their use Meaning (1) A tax pooling account means a trust account into which a tax pooling intermediary pays an amount that they receive from a person in their role as intermediary.

Use of funds in tax pooling accounts (2) An amount held in a tax pooling account on behalf of a person may be refunded, transferred, sold, or used to satisfy a per- son’s liability for terminal tax, provisional tax, or an increased amount of tax described in subsection (3).
(3) When original liability increased For the purposes of this section, an increased amount of tax— arises when a person’s previous assessed liability is in- (a) creased after— (i) the Commissioner amends an assessment under section 113 of the Tax Administration Act 1994: the Commissioner makes a determination under section 119 of that Act: (ii) 2753 Part R s RP 17B Income Tax Act 2007 Reprinted as at 29 May 2012 (ab) (ac) (iii) an assessment is made because the Commis- sioner or the person is treated under section 89H of that Act as having accepted a proposed adjustment: the person makes a voluntary disclosure: (iv) also arises when a person has— (i) (ii) before taking any action under subparagraph (ii), ﬁled a return required to be provided for a tax type listed in subsection (8); and has made a voluntary disclosure in relation to the return: also arises when— (i) before any assessment or adjustment under sub- paragraph (ii) is made, the person has ﬁled a re- turn required to be provided for a tax type listed in subsection (8); and the Commissioner makes an assessment or adjustment increasing an amount previously payable: (ii) (b) (c) includes deferrable tax as deﬁned in section 3(1) of the Tax Administration Act 1994 payable by the person: does not include the amount of the previous assessment or the amount that was previously payable under para- graph (ab) or (ac), as applicable.
Transfers for provisional tax or terminal tax (4) A person who chooses to use funds in a tax pooling account to satisfy an obligation for provisional tax or terminal tax for a tax year may ask the tax pooling intermediary to arrange the transfer of an amount to their tax account with the Commis- sioner as follows: (a) (b) on or before the date that is 75 days after their terminal tax date for the tax year unless paragraph (b) or (c) ap- plies: on or before the date that is 76 days after their terminal tax date for the tax year if— (i) the person’s balance date falls at the end of Oc- tober, November, or December; and the terminal tax date falls in a tax year that has a 29 February in it: (ii) 2754 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 17B (c) if the amount is to be transferred from funds deposited on the person’s behalf in the tax pooling account under section RP 18 and the person’s return ﬁling require- ments have been met, at any time.
Group companies (4B) For the purposes of subsection (4)(c), if the person is part of a group of companies, the person includes the other companies in the group at the time at which a deposit to the tax pooling account is made, or funds purchased or used, as applicable.
(5) (6) (7) Transfer within 60 days for increased amounts If a person chooses to use funds in a tax pooling account to sat- isfy an obligation for an increased amount of tax as described in subsection (3)(a) to (ac), the tax pooling intermediary must ask the Commissioner within 60 days from the date on which the Commissioner issues the notice of assessment increasing the amount to transfer the amount to the person’s tax account with the Commissioner.
Transfer within 60 days for deferrable tax If a person chooses to use funds in a tax pooling account to satisfy an obligation for deferrable tax under subsection (3)(b), the tax pooling intermediary must ask the Commis- sioner within 60 days from the date on which the court pro- ceedings are ﬁnally determined to transfer the amount to the person’s tax account with the Commissioner.

For the purposes of this subsection, court proceedings include proceedings be- fore the Taxation Review Authority.
(b) Maximum amount of transfer The maximum amount that a person may ask a tax pooling intermediary to transfer to meet an obligation to pay tax is— for a transfer under subsection (4)(a) or (b), the amount (a) payable: for a transfer under subsection (4)(c), the amount of the funds deposited by the person under section RP 18: for a transfer under subsection (5), the increased amount of tax payable: for a transfer under subsection (6), the amount of de- ferrable tax payable.
(d) (c) 2755 Part R s RP 17B Income Tax Act 2007 Reprinted as at 29 May 2012 (8) (9) Extended meaning for increased amount of tax and deferrable tax For the purposes of sections RP 17 to RP 21, an increased amount of tax or deferrable tax includes an amount relating to— (a) tax paid or payable under the PAYE rules, ESCT rules, RSCT rules, RWT rules, or NRWT rules: income tax, GST, FBT, further income tax, and imput- ation penalty tax payable under section 140B of the Tax Administration Act 1994.
(b) When subsection (10) applies Subsection (10) applies when— (a) a person is liable for an increased amount of tax that relates to income tax or resident withholding tax; and subsection (3)(ab)(ii) applies in relation to the amount; and the person has not ﬁled the return required by subsection (3)(ab)(i) before the voluntary disclosure is made.
Commissioner’s discretion to allow use of funds (10) On application by the person, the Commissioner may agree in writing that they may use funds in a tax pooling account for the increased amount of tax if the Commissioner is satisﬁed that— (a) the increased amount arises as a result of an event or circumstance beyond the person’s control; and the person has a reasonable justiﬁcation or excuse for not ﬁling the return by the required date; and the person has an otherwise good compliance history for the 2 income years before the income year in which the voluntary disclosure referred to in subsection (3)(ab)(ii) is made.
Review (11) After the expiry of 1 year, but before the expiry of 2 years, after the commencement of subsection (10), the Commissioner must— (a) (b) review the operation of subsections (9) and (10); and assess the impact of these subsections; and 2756 (b) (c) (b) (c) Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 17B (c) consider whether any amendments to the law are neces- sary or desirable and, in particular, whether these sub- sections are needed; and (d) report the ﬁndings to the Minister of Revenue.
Deﬁned in this Act: amount, amount of tax, assessment, balance date, Com- missioner, corresponding income year, income tax, notice, pay, provisional tax, return of income, tax account with the Commissioner, tax pooling account, ter- minal tax Section RP 17B: inserted, on 6 October 2009, by section 551 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 17B(3)(ab): inserted, on 29 August 2011, by section 126(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(3)(ac): inserted, on 29 August 2011, by section 126(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(3)(c): amended, on 29 August 2011, by section 126(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B(4) heading: substituted, on 29 August 2011, pursuant to section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(4): substituted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(4B) heading: inserted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B(4B): inserted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(5): amended, on 29 August 2011, by section 126(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(7) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B(7): added, on 29 August 2011, by section 126(5) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(8) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(8): added, on 29 August 2011, by section 126(5) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B(9) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(9): added, on 29 August 2011, by section 126(5) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(10) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
2757 Part R s RP 18 Income Tax Act 2007 Reprinted as at 29 May 2012 Section RP 17B(10): added, on 29 August 2011, by section 126(5) of the Tax- ation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B(11) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B(11): added, on 29 August 2011, by section 126(5) of the Tax- ation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B list of deﬁned terms balance date: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B list of deﬁned terms corresponding income year: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 17B list of deﬁned terms income tax: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 17B list of deﬁned terms return of income: inserted, on 29 Au- gust 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

RP 18 Deposits in tax pooling accounts (1) (2) When this section applies This section applies when a tax pooling intermediary makes a deposit in a tax pooling account on behalf of a person.
Deposit held in trust The intermediary holds the principal amount of the person’s deposit in trust for the person until the amount is— (a) credited to the person’s tax account with the Commis- sioner: credited to another person’s tax account with the Com- missioner: refunded to the person: transferred at the person’s request to another intermedi- ary: transferred at the intermediary’s request to another intermediary.
(b) (c) (d) (e) Effective date (2B) For the purposes of this section and sections RP 17B and RP 19, a deposit that is transferred between intermediaries under subsection (2)(d) or (e) retains its pre-transfer date.
2758 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 18 (3) Notiﬁcation required The intermediary must— (a) (b) notify the person, at or before the time the person pays an amount to the intermediary, that the payment does not satisfy an obligation of the person to make a pay- ment to the Commissioner; and notify the Commissioner by electronic means, provid- ing for each person who has contributed an amount as a deposit,— (i) (ii) the person’s name and tax ﬁle number; and the amount of the person’s contribution.
Conﬁrming receipt of deposit and details (4) On receiving the deposit and details described in subsection (3), the Commissioner must provide conﬁrmation of receipt.

(5) Refunding deposit If the details described in subsection (3) are not provided within 5 working days after a deposit is made, the Commis- sioner must refund the deposit.
Deﬁned in this Act: amount, Commissioner, intermediary, notify, pay, tax ac- count with the Commissioner, tax ﬁle number, tax pooling account, working day Compare: 2004 No 35 ss MBA 3, MBA 4(3), MBA 5(1)–(4) Section RP 18(2)(c): amended, on 6 October 2009, by section 552(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 18(2)(d): added, on 6 October 2009, by section 552(1) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 18(2)(e): added, on 6 October 2009, by section 552(1) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 18(2B) heading: inserted, on 6 October 2009, by section 552(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 18(2B): inserted, on 6 October 2009, by section 552(2) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 18(4) heading: substituted, on 6 October 2009, by section 552(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 18(4): substituted, on 6 October 2009, by section 552(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2759 Part R s RP 19 Income Tax Act 2007 Reprinted as at 29 May 2012 RP 19 Transfers from tax pooling accounts Transferring amounts (1) A tax pooling intermediary may ask the Commissioner to transfer an amount in their tax pooling account to the tax account of a person who is their client or to another inter- mediary.
Treatment of transferred amounts (1B) An amount transferred and credited to the tax account of a person is treated as follows: (a) (b) for an amount credited on or before the person’s ter- minal tax date for a tax year, as income tax paid to meet a provisional tax obligation under the provisional tax rules: for an amount credited after the person’s terminal tax date for a tax year,— (i) ﬁrst, as applied under section 120F of the Tax Administration Act 1994 to pay interest that the person is liable to pay; and secondly, as income tax paid to meet the person’s provisional tax obligation.
(ii) Credited on date of deposit or later The intermediary may ask the Commissioner that the amount of a transfer under subsection (1) is credited in the person’s tax account or the account of another intermediary on the date on which the amount was deposited in the tax pooling account or on some later date.
Credit date The credit date for an amount transferred to a person’s tax account is— (a) for a transfer under section RP 17B(4)(a) or (b), the relevant instalment date set out in schedule 3, part A (Payment of provisional tax and terminal tax): for a transfer under section RP 17B(4)(c), the date on which the person deposited the funds in a tax pooling account: for a request made within the 60-day period referred to in section RP 17B(5) or (6), a date nominated that is no earlier than the original due date for the relevant period: (b) (c) (2) (3) 2760 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 19B (d) in any other case, the date on which the Commissioner receives the request for the transfer.
(4) Details For the purposes of this section, the intermediary must pro- vide the following details to the Commissioner by electronic means: (a) the date of the transfer and the credit date, if it is differ- ent; and the amount of the transfer; and the tax ﬁle number of the person for whom the amount is transferred.
(b) (c) Statement (5) When an amount is transferred, the Commissioner must pro- vide a statement showing the effect of the transfer to both the intermediary and the person for whom the transfer is made.
Deﬁned in this Act: amount, Commissioner, income tax, intermediary, pay, provisional tax, provisional tax rules, tax ﬁle number, tax pooling account, tax year, terminal tax Compare: 2004 No 35 s MBA 6(1)–(3) Section RP 19(1) heading: substituted, on 6 October 2009, by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 19(1): substituted, on 6 October 2009, by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 19(1B) heading: inserted, on 6 October 2009, by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section RP 19(1B): inserted, on 6 October 2009, by section 553(1) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 19(2): amended, on 6 October 2009, by section 553(2) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RP 19(3): substituted, on 29 August 2011, by section 127 of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
RP 19B Transfers for certain expected tax liabilities Who this section applies to This section applies to a person who— (1) 2761 Part R s RP 19B Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) expects to have an income tax or provisional tax liability for a tax year; and has acquired funds in a tax pooling account other than by depositing them on their own account; and has not yet ﬁled a return of income in relation to the liability for the tax year.
(2) Using funds The person may choose to use the funds towards the payment of the liability for the tax year on meeting all the requirements of this section.

Requirements at time of making request (3) At the time of making the request, the person must— (a) (b) for an income tax liability, have met all their return ﬁling requirements for earlier tax years: for a provisional tax liability, have met all their obliga- tions under the provisional tax rules for the tax year.
Effective date of transfer The effective date that the person nominates for the transfer of funds must correspond to the relevant instalment date set out in schedule 3, part A (Payment of provisional tax and terminal tax).
Refunds If, as a result of a transfer under this section, excess tax arises for the person, the amount of excess tax is treated as follows: ﬁrst, the amount is transferred to meet a liability for the (a) person, as applicable, for— (i) provisional tax or terminal tax under section RP 17B(4)(a) or (b): an increased amount of RP 17B(5): an obligation to pay deferrable tax under section RP 17B(6): tax under section (ii) (iii) (b) (c) second, the amount is transferred with an effective date that is no earlier than the date on which the Commis- sioner received the later request: third, the amount is refunded to the person.
(4) (5) 2762 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RP 20 (6) Relationship with section RP 17B This section overrides section RP 17B(7)(a).

Deﬁned in this Act: amount, Commissioner, instalment date, provisional tax, provisional tax rules, return of income, tax pooling account, tax year, terminal tax Section RP 19B: inserted, on 29 August 2011, by section 128 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
RP 20 Declining, amending, or reversing transfers (1) (2) (2B) (3) When this section applies This section applies when a tax pooling intermediary asks to transfer an amount under section RP 19.

Tax avoidance The Commissioner may refuse to accept the request, or may reverse the transfer, if the request is made for the purpose or effect of tax avoidance.
Non-compliance If the Commissioner considers that the request does not com- ply with sections RP 17 to RP 21, the Commissioner may— (a) (b) (c) decline to process the request: amend the request: reverse the transfer.

Failure to provide details The Commissioner must refuse the transfer if— (a) it relates to a deposit for which the details have not been provided under section RP 18(3) and the period of 5-working days has not expired: the details required under section RP 19(4) have not been provided.
(b) Deﬁned in this Act: amount, Commissioner, intermediary, tax avoidance, work- ing day Compare: 2004 No 35 s MBA 6(4)–(9) Section RP 20 heading: substituted, on 29 August 2011, by section 129(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section RP 20(2B) heading: inserted, on 29 August 2011, by section 129(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section RP 20(2B): inserted, on 29 August 2011, by section 129(2) of the Tax- ation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

2763 Part R s RP 21 Income Tax Act 2007 Reprinted as at 29 May 2012 RP 21 Refunds from tax pooling accounts A tax pooling intermediary may ask the Commissioner to re- fund some or all of the balance in their tax pooling account.
Deﬁned in this Act: Commissioner, intermediary, tax pooling account Compare: 2004 No 35 s MBA 7 Subpart RZ—Terminating provisions Contents Provisional tax Page RZ 1 Certain elections to become person with provisional tax 2765 liability RZ 2 Amount of provisional tax based on 1997–98 or earlier 2765 tax year Standard method: 2010–11 to 2012–13 income years RZ 3 RZ 4 GST ratio method: 2010–11 to 2013–14 income years RZ 5 Calculating amounts under standard method: 2010–11 to 2012–13 income years RZ 5B Standard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year [Repealed] 2766 2767 2769 2771 RZ 5C GST ratio method: new personal tax rate persons from 2771 1 October 2008 to end 2009–10 income year [Repealed] RZ 5D Standard method or GST method: transition for Maori 2771 authorities RZ 6 Limits on refunds: transitional dates Refunds Withdrawal income Payment and rate of withdrawal tax RZ 7 Withdrawal income RZ 8 RZ 9 Relief in certain cases RZ 10 Recovery of amounts payable to Commissioner RZ 11 Refunds for life insurers 2772 2773 2773 2774 2774 2775 2764 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RZ 2 Provisional tax RZ 1 Certain elections to become person with provisional tax liability (1) (2) When this section applies This section applies when a person has a non-standard income year and has, between 10 October 2000 and the date on which the Taxation (Relief, Refunds, and Miscellaneous Provisions) Act 2002 received Royal asset, ﬁled a return of income for the 1998–99 income year or a later income year on the basis that section MB 3(a) of the Income Tax Act 2004 (section MB 2A(1)(a)(i) before the enactment of that Act) applied.
Choosing to have provisional tax liability The person may choose to be a person with a provisional tax liability for the income year for which the return was ﬁled if they have paid provisional tax of more than $2,500 on or before the date of instalment F for the income year corresponding to the tax year for which the return was ﬁled.
Deﬁned in this Act: corresponding income year, income year, non-standard income year, provisional tax, return of income, tax year Compare: 2004 No 35 s MZ 8 RZ 2 Amount of provisional tax based on 1997–98 or earlier tax year For the purposes of sections MB 4 and MB 5 other than sec- tion MB 5(3) and (4) of the Income Tax Act 2004 (which relate to the methods for calculating provisional tax), and for a per- son who is a New Zealand superannuitant for the 1997–98 tax year, the person’s residual income tax for the tax year or for an earlier tax year is the amount that would have been their residual income tax if they— (a) had not been liable to pay the New Zealand superannu- itant surcharge; and had not paid any New Zealand superannuitant surcharge by way of surcharge deduction.
(b) Deﬁned in this Act: amount, New Zealand superannuitant, residual income tax, tax year Compare: 2004 No 35 s MZ 9 2765 Part R s RZ 3 Income Tax Act 2007 Reprinted as at 29 May 2012 RZ 3 Standard method: 2010–11 to 2012–13 income years (1) (2) (3) When this section applies This section applies to the calculation of a person’s provisional tax liability, when section RC 5 (Methods for calculating pro- visional tax liability) applies,–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12 and 2012–13 income years, if the person is a new personal tax rate person: for instalments payable for the 2011–12 and 2012–13 income years, if the person is a new company tax rate person.
(b) Standard method modiﬁed: for 5% uplift The standard method under section RC 5(2) is modiﬁed so that–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using 105%, the amount of provisional tax payable is calculated using 95%, if the person is a new personal tax rate person: for the 2011–12 income year, instead of using 105%, the amount of provisional tax payable is calculated using–– 95%, if the person is a new personal tax rate per- (i) son; or 100%, if the person is a new company tax rate person.
(ii) (b) Standard method modiﬁed: for 10% uplift The standard method under section RC 5(3) is modiﬁed so that–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using 110%, the amount of provisional tax payable is calculated using 95%, if the person is a new personal tax rate person: for the 2011–12 income year, instead of using 110%, the amount of provisional tax payable is calculated using–– 95%, if the person is a new personal tax rate per- (i) son; or 105%, if the person is a new company tax rate person: (ii) (b) 2766 Reprinted as at 29 May 2012 (c) Income Tax Act 2007 Part R s RZ 4 for the 2012–13 income year, instead of using 110%, the amount of provisional tax payable is calculated using–– 100%, if the person is a new personal tax rate (i) person; or 105%, if the person is a new company tax rate person.
(ii) Deﬁned in this Act: amount, income year, new company tax rate person, new personal tax rate person, pay, provisional tax Section RZ 3: substituted, on 1 October 2010, by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
RZ 4 GST ratio method: 2010–11 to 2013–14 income years (1) (2) When this section applies This section applies to the calculation of a person’s provisional tax liability, when section RC 8 (GST ratio method) applies and requires an amount of residual income tax or an assess- ment of income tax for the calculation of the GST ratio,–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12, 2012–13, and 2013–14 income years, if the person is a new personal tax rate person: for instalments payable for the 2011–12, 2012–13, and 2013–14 income years, if the person is a new company tax rate person.
(b) The GST ratio method under section RC 8 is modiﬁed so that–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, and for the 2011–12 income year, if the person is a new personal tax rate person,–– the amount of residual income tax or the amount (i) of an assessment of income tax for the preceding year, as applicable, is reduced by multiplying the amount by 0.90: the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.85: (ii) 2767 Part R s RZ 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the tran- sitional year, as applicable, is reduced by multi- plying the amount by 0.80: (b) (c) (d) for instalments payable for the 2012–13 income year, if the person is a new personal tax rate person,–– (i) the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.90: the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the tran- sitional year, as applicable, is reduced by multi- plying the amount by 0.85: (ii) for instalments payable for the 2013–14 income year, if the person is a new personal tax rate person, the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.90: for instalments payable for the 2011–12 income year, if the person is a new company tax rate person,–– (i) the amount of residual income tax or the amount of an assessment of income tax for the preceding year, as applicable, is reduced by multiplying
 the amount by 0.95: the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95: the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the tran- sitional year, as applicable, is reduced by multi- plying the amount by 0.95: (ii) (iii) 2768 Reprinted as at 29 May 2012 (e) Income Tax Act 2007 Part R s RZ 5 for instalments payable for the 2012–13 income year, if the person is a new company tax rate person,–– (i) the amount of residual income tax or the amount of an assessment of income tax for the tax year before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95: the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the tran- sitional year, as applicable, is reduced by multi- plying the amount by 0.95: (ii) (f) for instalments payable for the 2013–14 income year, if the person is a new company tax rate person, the amount of residual income tax or the amount of an assessment of income tax for the year that is 2 years before the preceding year or the transitional year, as applicable, is reduced by multiplying the amount by 0.95.
Deﬁned in this Act: amount, assessment, GST ratio, income tax, income year, new company tax rate person, new personal tax rate person, pay, provisional tax, residual income tax Section RZ 4: substituted, on 1 October 2010, by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
RZ 5 Calculating amounts under standard method: 2010–11 to 2012–13 income years (1) When this section applies This section applies to the calculation of a person’s provisional tax liability, when section RC 10 (Calculating amount of in- stalment under standard and estimation methods) applies,–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year and for instalments for the 2011–12 and 2012–13 income years, if the person is a new personal tax rate person: for instalments payable for the 2011–12 and 2012–13 income years, if the person is a new company tax rate person.
(b) 2769 Part R s RZ 5 Income Tax Act 2007 Reprinted as at 29 May 2012 Calculation modiﬁed: for 5% uplift In the calculation of the amount of an instalment, in section RC 10(3)(a), subparagraph (i) is modiﬁed so that–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using a 5% uplift, a 5% reduction is used, if the person is a new personal tax rate person: for the 2011–12 income year, instead of using a 5% up- lift, the amount of provisional tax payable is calculated using–– (i) a 5% reduction, if the person is a new personal tax rate person; or no uplift, if the person is a new company tax rate person.
(ii) (b) Calculation modiﬁed: for 10% uplift In the calculation of the amount of an instalment, in section RC 10(3)(a), subparagraph (ii) is modiﬁed so that–– (a) for instalments payable on or after 1 October 2010 for the 2010–11 income year, instead of using a 10% uplift, a 5% reduction is used, if the person is a new personal tax rate person: for the 2011–12 income year, instead of using a 10% uplift, the amount of provisional tax payable is calcu- lated using–– (i) a 5% reduction, if the person is a new personal tax rate person; or a 5% uplift, if the person is a new company tax rate person: (ii) for the 2012–13 income year, instead of using a 10% uplift, the amount of provisional tax payable is calcu- lated using–– (i) no uplift, if the person is a new personal tax rate person; or a 5% uplift, if the person is a new company tax rate person.
(ii) (b) (c) Deﬁned in this Act: amount, income year, new company tax rate person, new personal tax rate person, pay, provisional tax Section RZ 5: substituted, on 1 October 2010, by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
(2) (3) 2770 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RZ 5D RZ 5B Standard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year [Repealed] Section RZ 5B: repealed, on 1 October 2010, by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
RZ 5C GST ratio method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year [Repealed] Section RZ 5C: repealed, on 1 October 2010, by section 29 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

RZ 5D Standard method or GST method: transition for Maori authorities (1) (2) When this section applies This section applies when the provisional tax liability of a Maori authority is calculated for the 2011–12 and 2012–13 in- come years (the transitional period).
Application of modiﬁed sections RZ 3 to RZ 5 Sections RZ 3 to RZ 5 apply for the transitional period to the Maori authority and the Maori authority’s provisional tax li- ability as if— (a) the Maori authority were a new company tax rate per- son: in section RZ 3,— (i) in subsection (2)(b)(ii), 100% had been replaced by 95%: in subsection (3)(b)(ii), 105% had been replaced by 100%: in subsection (3)(c)(ii), 105% had been replaced by 100%: (b) (c) in section RZ 4,— (i) in subsection (2)(d), 0.95 had been replaced by 0.9 in each place where it appears: in subsection (2)(e), 0.95 had been replaced by 0.9 in each place where it appears: (ii) (iii) (ii) (d) in section RZ 5,— 2771 Part R s RZ 6 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) (iii) in subsection (2)(b)(ii), a reference to no uplift had been replaced by a reference to a 5% reduc- tion: in subsection (3)(b)(ii), a reference to a 5% uplift had been replaced by a reference to no uplift: in subsection (3)(c)(ii), a reference to a 5% uplift had been replaced by a reference to no uplift.
Deﬁned in this Act: Maori authority, new company rate person, provisional tax liability Section RZ 5D: inserted (with effect on 1 October 2010), on 21 December 2010, by section 131 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
RZ 6 Limits on refunds: transitional dates Refunds ICA companies If an imputation credit account (ICA) company has a refund of income tax, and an amount paid in excess is dealt with under section RM 16(2)(c) (Treatment of amounts not refunded), the amount may be used only for a tax year commencing after the 1988–89 tax year, whether that is before or after the year of that entitlement.
Maori authorities If a Maori authority has a refund of income tax, and an amount paid in excess is dealt with under section RM 22(4)(b) (Limits on refunds for Maori authorities), the amount may be used only for a tax year commencing after the 2004–05 tax year, whether that is before or after the year of that entitlement.
PCA persons If a policyholder credit account (PCA) person has a refund of income tax, and an amount paid in excess is dealt with under section RM 31(2)(c) (Treatment of amounts not refunded), the amount may be used only for a tax year commencing after the 1990–91 tax year, whether that is before or after the year of that entitlement.
Deﬁned in this Act: amount, ICA company, income tax, Maori authority, PCA person, tax year Compare: 2004 No 35 ss MD 2(5)(a)(ii), MD 3(4)(a) (1) (2) (3) 2772 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RZ 8 Withdrawal income RZ 7 Withdrawal income (1) (2) (3) (4) When this section applies This section applies when a special home ownership account is closed in a tax year, and an amount is withdrawn on the closure other than an amount withdrawn under a withdrawal certiﬁcate.
Excluded income The amount withdrawn is treated as withdrawal income de- rived in the tax year by the person who operated the account and is excluded income of the person.
Amounts withdrawn under withdrawal certiﬁcates If an amount is withdrawn from a special home ownership ac- count under a withdrawal certiﬁcate and the requirements re- lating to that account have not been met, the amount is treated as withdrawal income derived by the person who operated the account in the tax year in which the Commissioner is notiﬁed that the requirements were not met.
Maximum amount For the purposes of subsections (2) and (3), the amount of withdrawal income must be no more than $10,250 less the total amount withdrawn from the account under a withdrawal cer- tiﬁcate.
Deﬁned in this Act: amount, Commissioner, excluded income, notify, special home ownership account, tax year, withdrawal certiﬁcate, withdrawal income Compare: 2004 No 35 s IZ 3 RZ 8 Payment and rate of withdrawal tax (1) (2) When this section applies This section applies when a person withdraws an amount from a special home ownership account that they have with an authorised savings institution and derives withdrawal income under section RZ 7(2).
Withholding withdrawal tax The authorised savings institution must withhold the amount of withdrawal tax from the amount payable to the person.

2773 Part R s RZ 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) (5) Rate of withdrawal tax The rate of withdrawal tax on withdrawal income is 45% of the gross amount of the income.
Paying withdrawal tax The authorised savings institution must pay the amount of tax to the Commissioner no later than the 20th day of the month following the month in which it becomes liable to withhold the amount.

Institution’s payment but failure to withhold If an authorised savings institution fails to withhold and pay the amount of withdrawal tax under subsection (2), and has paid an amount to the Commissioner under subsection (3), it may recover the amount from the person.
Person paying withdrawal tax (6) A person who derives withdrawal income under section RZ 7(3) must pay to the Commissioner within the time al- lowed the amount of withdrawal tax payable for the income.
Deﬁned in this Act: amount, amount of tax, authorised savings institution, Com- missioner, gross, pay, special home ownership account, withdrawal income, withdrawal tax Compare: 2004 No 35 ss IZ 1, IZ 2, IZ 4 RZ 9 Relief in certain cases If the Commissioner is satisﬁed that an amount of withdrawal tax is more than the total tax credit allowed in relation to a person’s account under section LZ 9(2) (Savings in special home ownership accounts), the Commissioner must reduce the amount of the withdrawal tax as is fair and reasonable in the circumstances.
Deﬁned in this Act: amount, Commissioner, tax credit, withdrawal tax Compare: 2004 No 35 s IZ 6 RZ 10 Recovery of amounts payable to Commissioner An amount payable to the Commissioner under section RZ 8(3) or (5) is recoverable as if it were income tax imposed under section BB 1 (Imposition of income tax).
Deﬁned in this Act: amount, Commissioner, income tax, pay Compare: 2004 No 35 s IZ 5 2774 Reprinted as at 29 May 2012 Income Tax Act 2007 Part R s RZ 11 RZ 11 Refunds for life insurers The Commissioner must refund an amount of tax that a life insurer has paid to the extent to which–– (a) (b) the tax paid gave rise to imputation credits; and for a tax year corresponding to an income year before the income year that includes 1 July 2010, the life insurer would be entitled to a refund under section RM 2(1) (Refunds for overpaid tax) or any provision corresponding to it in an earlier Act, treating section RM 2(1)(a) and any corresponding provision as modi- ﬁed so as to exclude the amount of the life insurer’s policyholder base income tax liability from the tax required to be paid by them; and all other relevant requirements for a refund are met.
(c) Deﬁned in this Act: amount of tax, Commissioner, imputation credit, income year, life insurer, pay, policyholder base income tax liability, tax Section RZ 11: added (with effect on 1 April 2008), on 6 October 2009, by sec- tion 556 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2775 Income Tax Act 2007 Reprinted as at 29 May 2012 Part Y Deﬁnitions and related matters Subpart YA—General deﬁnitions Contents YA 1 Deﬁnitions YA 2 Meaning of income tax varied YA 3 Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax [Repealed] Page 2776 3020 3022 YA 1 Deﬁnitions In this Act, unless the context requires otherwise,— abating WFF tax credit is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) absentee— (a) means a person other than a person who is resident in (b) New Zealand during any part of the tax year: is deﬁned in section HD 18 (Agency in relation to absen- tees generally) for the purposes of subpart HD (Agents) absolute value means the value irrespective of whether the value’s sign is positive or negative ACC means the Accident Compensation Corporation con- tinued by section 259 of the Accident Compensation Act 2001 ACC levy or premium is deﬁned in section EF 3(5) (Accident compensation levies and premiums) for the purposes of that section acceptable property is deﬁned in section GB 45(3) (Arrange- ments involving money not at risk) for the purposes of that sec- tion accident compensation earnings-related payment means a payment included in salary or wages of the following kinds and under the following Acts (a) under the Accident Compensation Act 1982, a payment of earnings related compensation, as deﬁned in section 2776 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) (c) 2, and of compensation under section 80(4), that are not payments of account made under section 88 in circum- stances in which, at the time the payments are made, the nature of the compensation has not been determined: under the Accident Rehabilitation and Compensation Insurance Act 1992,— (i) a vocational rehabilitation allowance payable under section 25; and a payment of compensation for loss of earnings payable under any of sections 38, 39, and 43;
 and a payment of compensation for loss of potential earning capacity payable under section 45 or 46; and a payment of weekly compensation payable under any of sections 58, 59, and 60; and a payment of continued compensation payable under section 138: under the Accident Insurance Act 1998,— (i) a payment or weekly compensation made by an insurer, as deﬁned in that Act: a payment of compensation for loss of earnings, or loss of potential earning capacity in relation to a work-related personal injury, as deﬁned in that Act, made by an insurer under a policy of personal accident or sickness insurance to which section 188(1)(a) (as it read immediately before its repeal by section 7 of the Accident Insurance Amendment Act 2000) applies: (ii) (iii) (iv) (v) (ii) (d) under the Accident Compensation Act 2001, a payment of weekly compensation made by the Corporation, as deﬁned in that Act accident compensation payment is deﬁned in section CF 1(2) (Beneﬁts, pensions, compensation, and government grants) for the purposes of that section accident compensation payment for attendant care is de- ﬁned in section LB 6(3) (Tax credits for caregivers) for the purposes of that section accident insurance contract is deﬁned in section CW 34(2) (Compensation payments) for the purposes of that section 2777 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 accommodation is deﬁned in section CE 1(2) (Amounts de- rived in connection with employment) for the purposes of that section and section CX 28 (Accommodation) account advantage— (a) is deﬁned in section GB 36(5) (Reconstruction of im- putation arrangements to obtain tax advantage) for the purposes of that section: is deﬁned in section GB 43(5) (Reconstruction of Maori authority credit arrangements to obtain tax advantage) for the purposes of that section (b) accounting period, for a foreign company, means— (a) (b) its accounting year; or the relevant period of other than 12 months, if a person’s attributed CFC income or loss or
 FIF income or loss from the foreign company is allowed or required to be calculated on the basis of a period other than 12 months because of a change of residence of the foreign company accounting proﬁts method[Repealed] [Repealed] accounting year,— (a) for any person, means a tax year or another 12 month period that ends with the date of the annual balance of the person’s accounts: for a company, includes— (i) (b) (ii) a period, shorter than 12 months, that is the period for which accounts are prepared, includ- ing under the international tax rules, because of the formation of the company or the termination of the company’s existence; and a period, shorter or longer than 12 months, that is the period for which accounts are prepared, including under the international tax rules, be- cause of the company or a person under section EX 25 (Change of CFC’s balance date) or EX 69 (Change of FIF’s balance date) adopting a new accounting balance date accrual accounting method is deﬁned in section EG 2(4) (Adjustment for changes to accounting practice) for the pur- poses of that section 2778 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 accrued entitlement, for a party to a ﬁnancial arrangement at any time, means the party’s rights under the arrangement at the time accrued obligation, for a party to a ﬁnancial arrangement at any time, means the party’s obligations under the arrangement at the time acquire, for depreciable property, includes— (a) make: (b) (c) be granted, for a patent or plant variety rights: lodge, for a patent application or a plant variety rights application acquisition is deﬁned in section GC 14 (Deﬁnitions for sec- tions GC 6 to GC 13) for the purposes of sections GC 6 to GC 13 (which relate to transfer pricing arrangements) acquisition price is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules active service area is deﬁned in section CW 24(2) (Deferred military pay for active service) for the
 purposes of that section actuarial reserves is deﬁned in section EZ 59 (Meaning of actuarial reserves) actuarially determined, for an amount, means a requirement that is met when an actuary has calculated the amount using relevant actuarial standards and a proper and reasonable cal- culation methodology actuary means a person who is— (a) (b) (c) (d) a Fellow of the New Zealand Society of Actuaries; or a Fellow of the Institute of Actuaries of Australia; or a Fellow of the Institute of Actuaries (of London); or the holder of an equivalent professional qualiﬁcation approved by the Commissioner for the purposes of this deﬁnition additional transport costs is deﬁned in section CW 18(3) (Allowance for additional transport costs) for the purposes of that section adjusted tax value— (a) is deﬁned in sections EE 55 to EE 60 (which relate to depreciation): 2779 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) for software acquired before 1 April 1993, is deﬁned in section EZ 20 (Adjusted tax value for software acquired before 1 April 1993): is deﬁned in paragraphs (a) and (b) and sections EE 21 to EE 24 (which relate to depreciation) for the purposes of section FO 16 (Amortising property) adverse event deposit is deﬁned in section EH 62 (Other def- initions) adverse event income equalisation account is deﬁned in sec- tion EH 62 (Other deﬁnitions) adverse event income equalisation scheme means the scheme referred to in section EH 1(2)(b) (Income equalisation schemes) adverse event maximum deposit is deﬁned in section EH 61 (Meaning of adverse event maximum deposit) affected associate is deﬁned in section GB 48(1) (Deﬁned terms for sections GB 45 and GB 46) for the purposes of sec- tions GB 45 and GB 46 (which relate to arrangements involv- ing money not at risk) agent means a person declared by this Act to be an agent for the purposes of income tax agreement for the sale and purchase of property is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the
 old ﬁ- nancial arrangements rules agreement for the sale and purchase of property or ser- vices— (a) means a ﬁnancial arrangement that is a conditional or acquire or dispose of property; or obtain or supply services; and unconditional agreement to— (i) (ii) does not include a forward contract, a futures contract, an option, or a speciﬁed option (b) agricultural, horticultural, or viticultural company means a company that carries on a business that comprises or includes performing any work or rendering a service set out in schedule 4, part C, clause 1(b) (Rates of tax for schedular payments) 2780 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 air transport from New Zealand is deﬁned in section CW 56(3) (Non-resident aircraft operators) for the purposes of that section airport is deﬁned in section HR 7(2) (Meaning of airport op- erator’s activities) for the purposes of that section airport asset is deﬁned in section HR 6(7) (Airport operator’s assets) for the purposes of that section airport authority is deﬁned in section 2 of the Airport Au- thorities Act 1966 airport operator means the Crown, acting by and through the Minister of Transport, and any local authority that is an airport authority, in their respective capacities as joint venturers under a joint venture agreement airport operator’s activities is deﬁned in section HR 7 (Meaning of airport operator’s activities) for the purposes of sections HR 5 and HR 6 (which relate to airport operators) amalgamated company means–– (a) the 1 company that results from and continues after an amalgamation and that may be 1 of the amalgamating companies or a new company: for an amalgamation of building societies, a building so- ciety described as society B in the deﬁnition of amal- gamation, paragraph (b) (b) amalgamating company means–– (a) a company that amalgamates with 1 or more other com- panies under an amalgamation: for an amalgamation of building societies, a building society described as society A or as
 society B in the deﬁnition of amalgamation, paragraph (b) (b) amalgamation means–– (a) an amalgamation to which both of the following apply: it occurs under Part 13 or 15 of the Companies (i) Act 1993, or it occurs or occurred under a foreign law that has the same or similar effect to Part 13 or 15 of the Companies Act 1993; and it causes 2 or more companies to amalgamate and continue as 1 company: (ii) 2781 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (ii) a transfer by a building society (society A) of all of its engagements to another building society (society B) under section 33 of the Building Societies Act 1965 if–– a notice of the transfer (the notice) is registered (i) under section 34(3) of the Building Societies Act 1965; and society A’s funds, property, and assets are trans- ferred or assigned to society B, except to the ex- tent required to settle its affairs before being re- moved from the register of building societies; and society A does not carry on business after the notice is registered, except to the extent required to settle its affairs before being removed from the register of building societies; and society A’s liabilities are satisﬁed or assumed by society B; and society A is or will be removed from the register of building societies as soon as practicable after the notice is registered (iii) (iv) (v) amalgamation rules means the provisions listed in section FO 2 (Amalgamation rules) amortising property means property for which a person— (a) is allowed a deduction for an amount of depreciation loss; or (b) may make a deduction on account of amortisation of ex- penditure under section EZ 7 (Buying patent rights be- fore 1 April 1993), EZ 8 (Premium paid on land leased before 1 April 1993), or any other amortisation provi- sion amount— (a) (b) includes an amount in money’s worth: in sections CB 24 (Disposal of timber or right to take timber), CB 25 (Disposal of land with standing timber), and CB 29 (Disposal of minerals),
 includes the amount treated as— (i) the price paid or realised under section EB 24 (Apportionment on disposal of business assets that include trading stock): 2782 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (ii) (iii) the consideration under sections FB 6 and FB 7 (which relate to the disposal of timber on a settle- ment of relationship property): the price realised under sections GC 1 and GC 2 (which relate to the disposal of trading stock for inadequate consideration): is deﬁned in section EH 35(2) (Meaning of main maxi- mum deposit) for the purposes of that section: is deﬁned in section EH 78(3) (Meaning of thinning operations maximum deposit) for the purposes of that section: is deﬁned in section GC 14 (Deﬁnitions for sections GC 6 to GC 13) for the purposes of sections GC 6 to GC 13 (which relate to transfer pricing arrangements): is deﬁned in section RD 33(4) (Subsidised transport) for the purposes of that section: is deﬁned in section RD 37(2) (Contributions to super- annuation schemes) for the purposes of that section: is deﬁned in section RD 41(4) (Services) for the pur- poses of that section (c) (d) (e) (f) (g) (h) amount of all consideration is deﬁned in section EZ 48 (Def- initions) for the purposes of the old ﬁnancial arrangements rules amount of tax, for a payment, includes the amount of tax that must be withheld and paid, or paid to the Commissioner under the PAYE rules, ESCT rules, RSCT rules, RWT rules, or NRWT rules ancillary tax means— provisional tax: (a) further income tax: (b) imputation penalty tax: (c) penalty tax for a Maori authority payable under section (d) 140DB of the Tax Administration Act 1994: FDP: further FDP: FDP penalty tax: qualifying company election tax: PAYE: FBT: (e) (f) (g) (h) (i) (j) 2783 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ESCT: (k) (kb) RSCT: (l) RWT: (m) NRWT: (n) withdrawal tax annual branch equivalent tax account return means the re- turn to be ﬁled with the Commissioner by a
 company under sections 77 and 78 of the Tax Administration Act 1994 annual FDPA return means the return to be ﬁled with the Commissioner by a company under sections 71 and 72 of the Tax Administration Act 1994 annual gross income is deﬁned in section BC 2 (Annual gross income) annual ICA return means the return to be ﬁled with the Com- missioner by a company under section 69 of the Tax Admin- istration Act 1994 annual income tax balance date is deﬁned in section EG 1(10) (Election to use balance date used in foreign coun- try) for the purposes of that section annual PCA return means the return to be ﬁled with the Com- missioner by a company under section 66 of the Tax Admin- istration Act 1994 annual rate is deﬁned in section EE 61 (Meaning of annual rate) annual rates means the rates of income tax ﬁxed for a tax year by the annual taxing Act for that year annual taxing Act means the provisions of any Act by which the rates of income tax are ﬁxed for a tax year annual total deduction is deﬁned in section BC 3 (Annual total deduction) approved issuer means a person for whom an approval under section 32M of the Tax Administration Act 1994 is in force arm’s length amount, for an arrangement that is a cross-bor- der arrangement under section GC 6 (Purpose of rules and na- ture of arrangements) means an arm’s length amount of con- sideration under section GC 13 (Calculation of arm’s length amounts) 2784 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 arrangement means an agreement, contract, plan, or under- standing, whether enforceable or unenforceable, including all steps and transactions by which it is carried into effect arrangement for assistance entered into by the government of New Zealand is deﬁned in section CW 22(3) (Amounts derived by overseas experts and trainees in New Zealand by government arrangement) for the purposes of that section arrangement property is deﬁned in section GB 45(3) (Ar- rangements involving money not at risk) for the
 purposes of that section ASC has the same meaning as available subscribed capital ASC account means a memorandum account established by an ASC account company under section OF 1(2) (General rules for companies with ASC accounts) ASC account company means a company that chooses under section OF 1(1) and OF 3 (which relate to ASCA companies) to become an ASCA company ASC credit means a credit referred to in section OA 5(6) (Credits) ASC debit means a debit referred to in section OA 6(6) (Debits) ASCA means available subscribed capital account assessable income is deﬁned in section BD 1(5) (Income, exempt for- eign-sourced income, and assessable income) assessment is deﬁned in section 3(1) of the Tax Administra- tion Act 1994 assessment period is deﬁned in section GB 45(3) (Arrange- ments involving money not at risk) for the purposes of that section asset— (a) excluded income, non-residents’ is deﬁned in section CU 11 (Meaning of asset for sec- tions CU 3 to CU 10) for the purposes of sections CU 3 to CU 10 (which relate to income from mining): is deﬁned in section DU 8 (Meaning of asset for sections DU 1 to DU 7) for the purposes of sections DU 1 to DU 7 (which relate to deductions for mining) income, (b) 2785 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 asset base means a segregated or identiﬁable group of assets or proportion of a group of assets attributable to proﬁt partici- pation policies associated, associated person, person associated, and other expressions indicating the association of persons with each other are deﬁned in sections YB 1 to YB 16 (which relate to associated persons) associated internal software developer is deﬁned in section LH 17 (Some deﬁnitions) for the purposes of subpart LH (Tax credits for expenditure on research and development) associated mining operations is deﬁned in section CU 29 (Other deﬁnitions) associated non-attributing active CFC, for a CFC, means a person who is associated with the CFC under section YB 2
 (Two companies) if the person and the CFC meet the following requirements: (a) (b) the person is a non-attributing active CFC; and the person and the CFC each have a taxed CFC connec- tion with the same country or territory association, in subpart HE (Mutual associations), and sections CB 33, CB 34, and DV 19, (which relate to mutual associ- ations), means a body or association of persons, whether in- corporated or not association rebate is deﬁned in section HE 3 (Association re- bates) for the purposes of subpart HE (Mutual associations) and sections CB 34 and DV 19 (which relate to mutual asso- ciations) attributable CFC amount is deﬁned in section EX 20B (At- tributable CFC amount) attributable FIF income method means the method of calcu- lating FIF income or FIF loss in section EX 50 (Attributable FIF income method) attributed CFC income is deﬁned in section CQ 2 (When attributed CFC income arises) attributed CFC loss is deﬁned in section DN 2 (When at- tributed CFC loss arises) attributed CFC net loss, for a person and for an income year in which they have an attributed CFC loss, means the part of 2786 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 the loss that the person is denied as a deduction because of sec- tion DN 4 (Ring-fencing cap on deduction), but must instead deal with under Part I (Treatment of tax losses) attributed PIE income means an amount of income attributed by a multi-rate PIE to an investor in the PIE under section HM 36 (Calculating amounts attributed to investors) attributed PIE loss means an amount of loss attributed by a multi-rate PIE to an investor in the PIE under section HM 36 (Calculating amounts attributed to investors) attributed repatriation is deﬁned in section CD 45 (When does a person have attributed repatriation from a controlled foreign company?)
attributing interest means an attributing interest in a foreign investment fund as deﬁned in sections EX 29 to EX 43 (which relate to attributing interests in FIFs) attribution period, for a multi-rate PIE, means a period de- scribed in section HM 34 (Attribution periods) Australian approved deposit fund means an approved de- posit fund as deﬁned in section 10 of the Superannuation In- dustry (Supervision) Act 1993 (Aust) Australian exempt public sector superannuation scheme means an exempt public sector superannuation scheme as de- ﬁned in section 10 of the Superannuation Industry (Supervi- sion) Act 1993 (Aust) Australian ﬁnancial year is deﬁned in section CV 8(3) (Regu- lations: Australian wine producer rebate) for the purposes of that section Australian ICA company means a company referred to in section OB 2(1) (Australian companies with imputation credit accounts) Australian regulated superannuation fund means a regu- lated superannuation fund as deﬁned in section 19 of the Superannuation Industry (Supervision) Act 1993 (Aust) Australian retirement savings account means a retirement savings account as deﬁned in section 8 of the Retirement Sav- ings Accounts Act 1997 (Aust) Australian wine producer rebate means a producer rebate (under A New Tax System (Wine Equalisation Tax) Act 1999 2787 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (Aust) and regulations made under that Act) that relates to wine exported from New Zealand on or after 1 July 2005 author is deﬁned in section EI 3(6) (Assigning or granting copyright) for the purposes of that section authorised savings institution means an authorised savings institution as deﬁned in the Home Ownership Savings Act 1974 available capital distribution amount means the amount cal- culated for a share in a company under section CD 44 (Avail- able capital distribution amount) available subscribed capital means the amount calculated for a share in a company under section CD 43 (Available sub- scribed capital (ASC) amount) available tax loss, for a
 person and their net income, means— a loss balance carried forward that, under Part I (Treat- (a) ment of tax losses), is required to be subtracted from the net income: an amount of another company’s tax loss that, under Part I, the person, if it is a company, is allowed to sub- tract from the net income an attributed CFC net loss or FIF net loss carried for- ward that, under subpart IQ (Attributed controlled for- eign company net losses and foreign investment fund net losses), is required to be subtracted from the net in- come: the amount of another company’s attributed CFC net loss or FIF net loss that, under subpart IQ, is subtracted from the net income (d) (b) (c) balance date, for the purposes of section RC 10 (Calculating amount of instalment under standard and estimation methods) and subpart RC (Provisional tax), section RP 17B (Tax pool- ing accounts and their use), and schedule 3 (Payment of pro- visional tax and terminal tax) means the date of the annual balance of a person’s ﬁnancial statements for their tax year balloted loan right is deﬁned in section DV 10(3) (Building societies) for the purposes of that section banking company means a person carrying on in New Zealand the business of banking 2788 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) base amount is deﬁned in section RC 8(2) (GST ratio method) for the purposes of that section base premium for the 1998–99 premium year is deﬁned in section EZ 30(3) (Base premium for 1998–99 premium year under Accident Insurance Act 1998) for the purposes of that section basic tax rate, for a person,— (a) means the basic rate of income tax for the person set out in schedule 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts) and sched- ule 2 (Basic tax rates for PAYE income payments); and in the case of a transitional year, resulting from a change in a person’s balance date, has the meaning given in section 39(5) of the Tax Administration Act 1994 benchmark
 distribution means the ﬁrst taxable Maori au- thority distribution by a Maori authority in a tax year benchmark dividend, means the ﬁrst dividend paid by a com- pany in a tax year that is not 1 of the following kinds (a) a dividend to which the company is not allowed by sec- tion OB 63 (Australian dividends) to attach an imput- ation credit: a distribution of a co-operative company for which the company has made an election under section OB 82 (When and how co-operative company makes election) beneﬁcial interest includes an interest that is contingent, dis- cretionary or unvested beneﬁciary is deﬁned in section DX 1(5) (Testamentary an- nuities) for the purposes of that section beneﬁciary income is deﬁned in section HC 6 (Beneﬁciary income) beneﬁt is deﬁned in section DB 45(4) (Bribes paid to public ofﬁcials) for the purposes of that section beneﬁt fund PIE means a deﬁned beneﬁt fund that— (a) meets the requirements of section HM 7 (Require- (b) (b) ments); and chooses to become a PIE under section HM 71 (Choos- ing to become PIE); and 2789 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and does not attribute amounts to investors (d) best estimate assumptions means assumptions about the fu- ture that–– (a) (b) are actuarially determined; and are made using professional judgement, training and ex- perience; and are not deliberately overstated or understated (c) BETA has the same meaning as branch equivalent tax ac- count BETA company means a company that chooses under sec- tions OE 1(1) and OE 3 (which relate to companies with branch equivalent tax accounts) to become a BETA company BETA person means a person who chooses under sections OE 1(2) and OE 17 (which relate to persons with branch equivalent tax accounts) to become a BETA person binding ruling is deﬁned in section 3 of the Tax Administra- tion Act 1994 bloodstock— (a) means a horse that is a member of the
 standardbred or thoroughbred breed of horses; and includes a share or interest in such a horse (b) bonus issue means the issue of shares in a company, or the giving of credit for or forgiveness of an amount unpaid on any shares in a company, if the company receives no consideration for the issue, crediting, or forgiveness other than the share- holder choosing not to receive an amount as an alternative to the issue bonus issue in lieu means a bonus issue made, on or after 1 October 1988, under an arrangement conferring on share- holders of a company an election whether to receive— (a) (b) money; or (c) money’s worth, other than money’s worth that is a a bonus issue; or bonus issue boutique investor class, for a portfolio investment entity, means an investor class of the entity if— 2790 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (a) (b) (c) (d) the class does not have 20 or more members; and the entity has 1 or more other investor classes that in- clude 20 or more persons; and no investor in the class described in paragraph (a), other than the manager or trustee of the entity, can control investment decisions relating to the class; and the investor interests of investors in all investor classes described in paragraph (a) of the entity add up to less than 10% of the total value of interests in the entity branch equivalent company[Repealed] [Repealed] branch equivalent income, for a foreign company and for an accounting period, means the amount of income for the accounting period calculated under section EX 21 (Branch equivalent income or loss: calculation rules) as that provision read immediately before being amended by section 161 of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 branch equivalent loss, for a foreign company and for an ac- counting period, means the amount of loss for the accounting period calculated under section EX 21 (Branch equivalent in- come or loss: calculation rules) as that provision read
 imme- diately before being amended by section 161 of the Taxation (International Taxation, Life Insurance, and Remedial Mat- ters) Act 2009 branch equivalent method means the method of calculat- ing FIF income or FIF loss in section EX 50 (Branch equiva- lent method) as that provision read immediately before being amended by section 35 of the Taxation (International Invest- ment and Remedial Matters) Act 2012 branch equivalent tax account means the account main- tained by a BETA company under section OE 2 (Branch equivalent tax accounts of companies) or a BETA person under section OE 17(3) (Person choosing to become BETA person) branch equivalent tax credit means a credit referred to in section OA 5(5) (Credits) 2791 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 branch equivalent tax debit means a debit referred to in sec- tion OA 6(5) (Debits) bribe is deﬁned in section DB 45(4) (Bribes paid to public ofﬁcials) for the purposes of that section broodmare means a broodmare that is bloodstock building, in subparts EE and EZ, does not include— (a) (b) building society is deﬁned in section 2 of the Building Societies Act 1965 business— (a) a grandparented structure: commercial ﬁt-out includes any profession, trade, or undertaking carried on for proﬁt: includes the activities of— (i) (ii) is further deﬁned in section DD 11 (Some deﬁnitions) for the purposes of subpart DD (Entertainment expend- iture) a statutory producer board: an airport operator: (b) (c) business contacts is deﬁned in section DD 11 (Some deﬁni- tions) for the purposes of subpart DD (Entertainment expend- iture) business premises is deﬁned in section DD 11 (Some deﬁni- tions) for the purposes of subpart DD (Entertainment expend- iture) business tool means an item that is used by an employee in the performance of their work duties and in the absence of section CX 21 (Business tools) would give rise to an unclassiﬁed bene- ﬁt business use, for a motor vehicle and for a person, means
 travel undertaken by the vehicle wholly in deriving the per- son’s income calculation method, for the calculation of FIF income or FIF loss, means any of the attributable FIF income method, the comparative value method, the deemed rate of return method, the fair dividend rate method, and the cost method calculation period, for a multi-rate PIE, means a period in which the entity calculates an amount under section HM 47 2792 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (Calculation of tax liability or tax credit of multi-rate PIEs) that— (a) (b) consists of 1 or more attribution periods: for a calculation under the quarterly calculation option, is a quarter: for a calculation under the exit calculation or provi- sional tax calculation options, is an income year: for a calculation under the exit calculation option when an exit period arises, is the exit period (c) (d) cancellation, for a company and for a share, means the acqui- sition, redemption, or other cancellation of the whole share by the company, including on the liquidation of a company, and when a stapled debt security ceases to be a share capital contribution— (a) (ii) in sections CG 8, DB 64, and EE 48 (which relate to capital contributions), means an amount that–– (i) is paid by a person (the payer) to a person (the recipient) under an agreement between them that is not a contract of insurance; and is paid by the payer other than in their capacity of settlor, partner, or shareholder of the recipient; and is not income of the recipient, ignoring section CG 8; and is paid, under the express terms and conditions of the agreement, as a contribution for depreciable property owned or to be acquired by the recipient: is deﬁned in section HG 11(12) (Limitation on deduc- tions by partners in limited partnerships) for the pur- poses of that section (iii) (iv) (b) capital limitation is deﬁned in section DA 2(1) (General limi- tations) capital property is deﬁned in section CD 44(18) (Available
 capital distribution amount) for the purposes of that section car,— (a) in section EZ 16 (Amount of depreciation loss for plant or machinery additional to section EZ 15 amount), and in the deﬁnition of qualifying asset,— 2793 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (i) (ii) means a motor vehicle designed exclusively or mainly to carry up to 9 people, including the driver; and includes such a motor vehicle that has rear doors and collapsible rear seats; and (iii) does not include a moped or a motorcycle: in the FBT rules, and in the deﬁnition of work-related vehicle,— (i) means a motor vehicle designed exclusively or mainly to carry people: includes such a motor vehicle that has rear doors or collapsible rear seats: does not include a minibus, moped, motorcycle, or taxi (ii) (iii) cash accounting method is deﬁned in section EG 2(4) (Ad- justment for changes to accounting practice) for the purposes of that section cash basis person is deﬁned in section EW 54 (Meaning of cash basis person) casual agricultural employee means— a casual agricultural worker: (a) a shearer: (b) a shearing shed hand (c) casual agricultural worker means a person engaged on a day to day basis for a period of no more than 3 months as a casual seasonal worker for the exclusive purpose of doing seasonal agricultural, horticultural, market gardening, nursery, orchard, or tobacco farming work, or other seasonal work that, in the opinion of the Commissioner, is work of a like nature to those classes of work category A income is deﬁned in section HR 3(1) (Deﬁnitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds) category B income is deﬁned in section HR 3(3) (Deﬁnitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds) CFC has the same meaning as controlled foreign company 2794 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 charitable or other public beneﬁt gift
 is deﬁned in section LD 3 (Meaning of charitable or other public beneﬁt gift) charitable organisation— (a) means, for a quarter or an income year, an association, fund, institution, organisation, society, or trust to which section LD 3(2) (Meaning of charitable or other public beneﬁt gift) or schedule 32 (Recipients of charitable or other public beneﬁt gifts) applies— (i) (ii) in the quarter; or in the income year, if fringe beneﬁt tax is payable on an income year basis under section RD 60 (Close company option); and (b) does not include a local authority, a public authority, or a university charitable purpose includes every charitable purpose, whether it relates to the relief of poverty, the advancement of education or religion, or any other matter beneﬁcial to the community, and— (a) the purpose of a trust, society, or institution is charit- able under this Act if the purpose would meet the public beneﬁt requirement apart from the fact that the beneﬁ- ciaries of the trust, or the members of the society or in- stitution, are related by blood: a marae has a charitable purpose if— (i) (b) (ii) the physical structure of the marae is situated on land that is a Maori reservation referred to in Te Ture Whenua Maori Act 1993 (the Maori Land Act 1993); and the funds of the marae are not used for a pur- pose other than the administration and mainten- ance of the land and of the physical structure of the marae, or not used for a purpose that is a char- itable purpose other than under this paragraph charitable trust is deﬁned in section HC 13 (Charitable trusts) for the purposes of the trust rules chief executive is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) 2795 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 chief executive of the administering department— (a) means the chief executive, appointed under the State Sector Act 1988, of the department
 responsible for ad- ministering the Social Security Act 1964; and includes any person authorised to perform any of the functions of the chief executive (b) child in subparts MA to MF and MZ (which relate to tax credits for families), and in the deﬁnition of dependent child, means a person who is not in a marriage, civil union, or de facto relationship, and who— (a) (b) is aged 15 years or less; or is aged 16 or 17 years and is not ﬁnancially independent; or is aged 18 years and is a person for whom a tax credit is allowed under section MD 1 (Abating WFF tax credit) or both sections MD 1 and ME 1 (Minimum family tax credit) (c) child tax credit is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) civil union partner, in subparts MA to MF and MZ (which relate to tax credits for families) and in section LC 13 (Tax credits for independent earners) and in the deﬁnitions of en- titlement period, full-time earner, and separated person, does not include a separated person claim, in the life insurance rules, is deﬁned in section EY 7 (Meaning of claim) claim of right means a belief that an act is lawful, although the belief may be based on ignorance, or mistake, of— (a) (b) fact; or any matter of law other than the enactment against which the offence is alleged to have been committed class, in subpart EC (Valuation of livestock), and in the deﬁn- ition of national average market value,— (a) means a category of livestock listed in schedule 17, col- umn 2 (Types and classes of livestock); and (b) when used of a particular type of livestock, means any of the categories listed for that particular type 2796 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 class of policies means life insurance policies that have sub- stantially the same terms and conditions, and that are priced by the life insurer using substantially the same assumptions close company— (a) means, at any
 time, a company to which 1 of the follow- ing applies: (i) (ii) at the time there are 5 or fewer natural persons the total of whose voting interests in the company is more than 50% (treating all natural persons associated at the time as 1 natural person); or at the time a market value circumstance exists for the company and there are 5 or fewer natural persons the total of whose market value interests in the company is more than 50% (treating all natural persons associated at the time as 1 natural person); and (b) in section RD 3(2) to (4) (PAYE income payments), in- cludes a company with 25 or fewer shareholders; and does not include a special corporate entity (c) close of trading spot exchange rate, for any foreign currency on any day, means the rate determined by applying the follow- ing paragraphs in order: (a) the rate of a spot contract for the purchase of New Zealand dollars using the foreign currency at any time on that day on a market approved, with the rate ob- tained from the sources of information approved, by the Commissioner in determination G6D made under sec- tion 64E of the Income Tax Act 1976 (or a determination issued in substitution for that determination); and if no such rate can be obtained for that day, then the rate on the next day on which it can be obtained and that is no later than 5 working days after the ﬁrst day; and if no such rate of a spot contract can be obtained, the cross rate determined as at 3.00 pm New Zealand time on that day by applying the method outlined in para- graph 6(3)(c) of determination G6D made under section 64E of the Income Tax Act 1976 (or in the correspond- ing paragraph of a determination issued in substitution for that determination); and (b) (c) 2797 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (d) if no such rate can be obtained, the rate determined by applying the method set out in paragraph 6(2) of deter- mination G9A made under section 64E of the Income Tax Act 1976 (or in the
 corresponding paragraph of a determination issued in substitution for that determin- ation) close relative is deﬁned in section FC 1(2) (What this subpart does) for the purposes of subpart FC (Distribution, transmis- sion, and gifts of property) closely-held company means, at any time, a company to which 1 of the following applies: (a) at the time there are 5 or fewer persons the total of whose direct voting interests in the company is more than 50%, treating all persons associated at the time as 1 person; or at the time,— (i) (b) a market value circumstance exists for the com- pany; and there are 5 or fewer persons the total of whose direct market value interests in the company is more than 50%, treating all persons associated at the time as 1 person (ii) closing stock, for a person and for an income year, means trading stock of the person at the end of the income year combined imputation and CTR ratio[Repealed] [Repealed] combined imputation and FDP ratio means the ratio set out in section OC 29 (FDP credits and imputation credits attached to dividends) combined tax and earner-related payment means, for a PAYE income payment, the total of— (a) the amount of tax for the PAYE income payment re- quired to be withheld and paid under the PAYE rules; and the amount withheld from the PAYE income payment under— (i) section 115 of the Accident Rehabilitation and Compensation Insurance Act 1992, on account (b) 2798 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (ii) (iii) of the earner’s premium payable by employees under the Act; or section 285 of the Accident Insurance Act 1998, on account of the earner’s premium payable by employees under the Act; or section 221 of the Accident Compensation Act 2001, on account of the earner’s levy payable by employees under the Act commencement of this Act, in sections ZA 3 (Transitional provisions), ZA 4 (Saving of binding rulings), ZA 5 (Saving of accrual determinations), and ZA 6 (Comparative tables of old and new
 provisions), means commencement under section A 2(2) (Commencement) commercial bill— (a) includes— (i) a document creating or securing a legal or equit- able security over goods, as deﬁned in section 16 of the Personal Property Securities Act 1999, for the payment of money owing or to become ow- ing, whether or not the document is registered under an Act; and a bill of exchange, as deﬁned in section 3 of the Bills of Exchange Act 1908; and a promissory note, as deﬁned in section 84 of the Bills of Exchange Act 1908, other than a ban- knote; and a Treasury Bill; and a document or agreement that has substantially the same purpose or effect as an item referred to in any of subparagraphs (i) to (iv); and a share or interest in an item referred to in any of subparagraphs (i) to (v); and a debenture or bond for the payment of a security issued by a body corporate; or a security, whether legal or equitable, over an estate or interest in land (ii) (iii) (iv) (v) (vi) (ii) (b) does not include— (i) 2799 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 commercial building means a building that is not, in part or in whole, a dwelling, unless use as a dwelling is a secondary and minor use commercial ﬁt-out means an item to the extent to which it is–– (a) plant attached to a commercial building, but not used inside a dwelling within the commercial building: attached to, and non-structural in relation to, a building, if the item is not used for weatherprooﬁng the building and–– (i) is not used in relation to, and is not part of, a dwelling within the building; or is used in relation to, but is not part of, a dwelling within the building, and the building is a commer- cial building (ii) (b) commercial production means the production of petrol- eum— (a) in a state suitable for delivery to a buyer, consumer, processor, reﬁnery, or user; and in commercial quantities; and on a continuing basis (b) (c) Commissioner means the Commissioner of Inland Revenue as deﬁned in section
 3 of the Tax Administration Act 1994 common interest is deﬁned in section YC 13(4) (Corporate spin-outs) for the purposes of that section common market value interest— (a) means the market value interest measured under section IC 3(4) (Common ownership: group of companies) for the purposes of that section and section IC 4: is deﬁned in section YC 13(6) (Corporate spin-outs) for the purposes of that section (b) common span is deﬁned in section IP 2(1) (Group compan- ies’ common span) for the purposes of subpart IP (Meeting requirements for part-years) common voting interest— (a) means the voting interest measured under section IC 3(3) (Common ownership: group of companies) for the purposes of that section and section IC 4: 2800 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) is deﬁned in section YC 13(5) (Corporate spin-outs) for the purposes of that section commonality period is deﬁned in section IC 6(1) (Common ownership for period) for the purposes of Part I (Treatment of tax losses) Commonwealth— (a) means the British Commonwealth of Nations; and (b) includes every territory for whose international rela- tions the Government of any country of the Common- wealth is responsible community trust is deﬁned in section 4 of the Community Trusts Act 1999 company— (a) means a body corporate or other entity that has a legal existence separate from that of its members, whether it is incorporated or created in New Zealand or elsewhere: (ac) (ad) (b) (c) (ab) does not include a partnership: (abb) does not include a look-through company, except in the PAYE rules, the FBT rules, the NRWT rules, the RWT rules, the ESCT rules, the RSCT rules, and for the pur- poses of subpart FO (Amalgamation of companies): includes a listed limited partnership: includes a foreign corporate limited partnership: includes a unit trust: includes a group investment fund that is not a designated group investment fund, but only to the extent to which the fund results from investments made
 into it that are— not from a designated source, as deﬁned in sec- (i) tion HR 3(5) (Deﬁnitions for section HR 2: group investment funds); and not made before 23 June 1983, including an amount treated as invested at that date under the deﬁnition of pre-1983 investment in section HR 3(8): (ii) (d) (e) (f) includes an airport operator: includes a statutory producer board: includes a society registered under the Incorporated Societies Act 1908: 2801 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (g) (h) (i) (j) includes a society registered under the Industrial and Provident Societies Act 1908: includes a friendly society: includes a building society: is further deﬁned in section EX 30(7) (Direct income interests in FIFs) for the purposes of that section company dividend statement means a statement required by section 67 of the Tax Administration Act 1994 to be completed and retained by a company for a dividend comparative value method means the method of calculating FIF income or FIF loss in section EX 51 (Comparative value method) compensation [Repealed] [Repealed] completed, for a ﬁlm, means the completion of the ﬁlm to— the stage of production at which the ﬁlm has been com- (a) pletely edited, shot by shot, to its ﬁnal length; or a production stage equivalent to that described in para- graph (a) (b) complying fund rules means, for a superannuation fund and an employee’s superannuation accumulation, rules that— (a) meet all the requirements set out in schedule 28 (Re- quirements for complying fund rules); and do not detract from those requirements (b) complying superannuation fund means a superannuation fund that is approved as a complying superannuation fund under section 35 of the Superannuation Schemes Act 1989 complying trust is deﬁned in section HC 10 (Complying trusts) compulsory employer contribution has the same meaning as in the KiwiSaver Act 2006 conduct is deﬁned in section IZ 1(12) (Use of speciﬁed activ- ity net losses) for the purposes
 of that section conduit company is a company that meets the requirements of section FF 2 (When interest apportionment rule applies) 2802 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 consideration—[Repealed] (aa) includes the amount owing under a stapled debt security when the security ceases to be a share, in section CD 43 (Available subscribed capital (ASC) amount): is deﬁned in section EE 45 (Consideration for purposes of section EE 44) for the purposes of section EE 44 (Application of sections EE 48 to EE 52): (a) (b) means an amount determined under the ﬁnancial ar- rangements rules in— (i) (ii) the ﬁnancial arrangements rules: section EX 21(11) (Attributable CFC amount and net attributable CFC income or loss: calculation rules): sections FO 12 to FO 15 (which relate to the treatment of ﬁnancial arrangements on amalgam- ation): sections FO 18 to FO 20 (which relate to compan- ies that are parties to ﬁnancial arrangements): section HC 31(4) (When existing trusts come into tax base) (iii) (iv) (v) [Repealed] consolidated BETA group is deﬁned in section OP 97(1) tax accounts of consolidated BETA (Branch equivalent groups) consolidated FDP group is deﬁned in section OP 51(1) (FDP accounts of consolidated FDP groups) consolidated group means, at any time, a consolidated group formed under section FM 35 (Forming consolidated group) as it is constituted at that time consolidated imputation group means— (a) (b) (c) an imputation group: a resident imputation subgroup: a consolidated group, no member of which is a member of an imputation group consolidation rules means the provisions listed in section FM 2(2) (Consolidation rules) contaminant means a contaminant as deﬁned in section 2(1) of the Resource Management Act 1991 2803 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 continental shelf is deﬁned in the Continental Shelf Act 1964 continuity period— (a) is deﬁned in section IA 5(6) (Restrictions on compan- ies’ loss balances carried
 forward) for the purposes of that section: is deﬁned in section LP 4(3) (Continuity rules for carry- ing credits forward) for the purposes of that section (b) continuity provisions means— (a) section GB 3 (Arrangements for carrying forward loss balances: companies); and section GB 4 (Arrangements for grouping tax losses: companies); and sections IA 3 and IA 4 (which relate to the use of tax losses); and section IA 5 (Restrictions on companies’ loss balances carried forward); and section IC 1 (Company A making tax loss available to company B); and section LP 3(4) (Use of remaining credits); and section OB 41 (ICA debit for loss of shareholder con- tinuity); and section OC 24 (FDPA debit for loss of shareholder con- tinuity); and section OE 10 (BETA credit for loss of shareholder con- tinuity); and section OK 15 (MACA debit for loss of shareholder continuity) (b) (c) (d) (e) (f) (g) (h) (i) (j) contract activity or service, for a non-resident contractor, means— (a) (b) (c) performing any work in New Zealand: rendering a service of any kind in New Zealand: providing the use of, or right to use, in New Zealand, any personal property or services of a person other than the non-resident contractor contract of employment is deﬁned in section DC 3B(3) (Pay- ments to working owners) for the purposes of that section and the deﬁnition of working owner contract of service is deﬁned in section DC 4(5) (Payments to working partners) for the purposes of that section 2804 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 contract payment, for a non-resident contractor, means any payment other than— (a) (b) a royalty; or a payment made to the non-resident contractor by or on behalf of a person who is not associated with the contractor to reimburse costs incurred by the contractor; or a payment referred to in schedule 4, part E (Rates of tax for schedular payments) (c) directly; or indirectly by reimbursement through another person contribution, in the FBT rules, means a
 contribution made— (a) (b) control interest, for a foreign company, is deﬁned in sections EX 2 (Four categories for calculating control interests) and EX 7 (Indirect control interests) control interest category means 1 of the categories of control interest listed in section EX 2(2) (Four categories for calculat- ing control interests) controlled foreign company is deﬁned in section EX 1 (Meaning of controlled foreign company) controlled petroleum mining company means a company that is a petroleum miner if— (a) 90% or more in value of its outstanding shares are held, directly or indirectly, by or for 5 or fewer persons; and the market value of a petroleum permit, including an asset of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset) attributable to the permit, held by the company is at least 75% of the value of its assets minus its liabilities, as shown in the com- pany’s audited ﬁnancial statement or accounts prepared under generally accepted accounting practice (b) controlled petroleum mining entity means— (a) (b) (c) (d) a controlled petroleum mining company; or a controlled petroleum mining holding company; or a controlled petroleum mining trust; or a controlled petroleum mining holding trust 2805 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) controlled petroleum mining holding company means a company if— (a) 90% or more in value of its outstanding shares are held, directly or indirectly, by or for 5 or fewer persons; and the total market value of the following shares and trust interests held by the company is at least 75% of the value of its assets minus its liabilities, as set out in the company’s audited ﬁnancial statement or accounts pre- pared according to generally accepted accounting prac- tice: (i) (ii) (iii) (iv) shares in petroleum mining companies: shares in petroleum mining holding companies: trust interests in petroleum miners that are trusts: trust interests in petroleum mining holding trusts
 controlled petroleum mining holding trust means a trust that is a petroleum miner if— (a) 90% or more in value of the trust is owned, directly or indirectly, by or for 5 or fewer persons; and the total market value of the following shares and trust interests held by the trust is at least 75% of the value of its assets minus its liabilities, as set out in the trust’s accounts prepared according to generally accepted ac- counting practice: (i) (ii) trust interests in petroleum miners that are trusts: trust interests in other petroleum mining holding trusts: shares in petroleum miners that are companies: shares in petroleum mining holding companies (iii) (iv) (b) controlled petroleum mining trust means a trust that is a petroleum miner if— (a) 90% or more in value of the trust is owned, directly or indirectly, by or for 5 or fewer persons; and the market value of a petroleum permit, including an asset of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset) attributable to the permit, held by the trust is at least 75% of the value of its assets minus its liabilities, as shown in the trust’s accounts prepared under generally accepted accounting practice (b) 2806 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 controlling shareholder is deﬁned in section HD 15(9) (Asset stripping of companies) for the purposes of that section convert, for a New Zealand emissions unit, means convert as deﬁned in section 4(1) of the Climate Change Response Act 2002 convertible credit means a credit that a person is allowed under Part L (Tax credits and other credits)— (a) (b) for an imputation credit; or for FDP, if the person is not entitled to a refund of the credit under Part R (General collection rules) convertible note means a document or a combination of docu- ments that— (a) (b) is issued or given by a company; and creates or relates to money lent to the company, whether or not secured; and provides, whether exclusively or not,— (i) (c) (ii)
 for the holder to have a right to subscribe for shares or stock in the capital of the company or in the capital of another company; or for the amount or any part of the amount, with or without interest and whether at par or otherwise, to be converted into or repaid by the issue of shares in the company, whether the conversion or repayment by the issue of shares is mandatory or is at the option of the company or of the holder co-operative company does not include a statutory producer board copyright in a sound recording means the copyright in the version of the recording of which copies have been sold or offered for sale to the public core acquisition price is deﬁned in section EZ 48 (Deﬁni- tions) for the purposes of the old ﬁnancial arrangements rules corpus is deﬁned in section HC 4 (Corpus of trust) for the purposes of the trust rules corresponding income year, for a tax year, means an income year that ends in the period starting on 1 October in the tax year and ending on 30 September immediately after the tax year 2807 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 cost,— (a) (b) (c) in subpart EB (Valuation of trading stock (including dealer’s livestock)), for trading stock, means costs in- curred in the ordinary course of business to bring trad- ing stock to its present location and condition, including purchase costs and costs of production, calculated under sections EB 6 to EB 8 (which relate to costs for stand- ard valuations), EB 15 to EB 18 (which relate to costs for low-turnover traders), and EB 22 (Valuing closing stock consistently for low-turnover traders): is deﬁned in section RD 40(3) (Goods) for the purposes of that section: in sections RD 42 and RD 43 (which relate to goods pro- vided with staff discount), for a registered person who may claim input tax for the cost of the goods, means the GST-inclusive cost of the goods to the person cost method means a method of calculating FIF income or FIF loss under section EX 56 (Cost method) cost
 of timber, in sections DP 11, EJ 1, EW 2, EZ 44, FB 6, and FB 7 (which relate to the disposal of timber),— (a) means the amount of expenditure incurred by a person in relation to timber— (i) (ii) before harvest, for a disposal of harvested timber: before the disposal of the timber or the relevant right, for a disposal of standing timber or a dis- posal of a right to take timber, or another right referred to in section DP 11(4) (Cost of timber); and includes, for section DP 11,— (i) expenditure on planning, planting, and growing the timber: expenditure incurred in relation to the rights listed in section DP 11(4); and (ii) excludes— (i) expenditure for which a deduction is allowed under a provision of this Act other than section DP 11: (b) (c) 2808 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (ii) (iii) expenditure to which section DB 46 (Avoiding, remedying, or mitigating effects of discharge of contaminant) applies: an amount allowed as a deduction under sec- tion DQ 4 (Environmental restoration accounts scheme) cost price,— (a) (b) (c) (d) (e) in subpart EC (Valuation of livestock), does not include any amount of input tax in relation to the supply of live- stock or trading stock to a person; and in section FZ 2 (Effect of speciﬁed lease on lessor and lessee), and in the deﬁnition of speciﬁed lease, and for a personal property lease asset, means the amount of expenditure of a capital nature that is incurred, in ac- quiring and installing the asset,— (i) (ii) by the lessor; or if the lessor under a lease acquires the asset as lessee under any other lease, by the person who is the lessor in the other lease; and as a qualiﬁcation on paragraph (b), if, in carrying on a business in the income year in which the asset is ac- quired, the lessor acquires, manufactures, or assembles as trading stock, and distributes or sells, an asset of the same kind as the asset, the cost price for the asset is an amount equal to the normal price for which, at the start
 of the lease period, the lessor would have sold an asset of the same kind as the asset to the lessee; and as another qualiﬁcation on paragraph (b), if the lessor has used the asset in deriving income before the lease is entered into, the cost price of the asset is equal to the capital expenditure incurred by the lessor in acquiring the asset, reduced by the total of the amounts of depre- ciation loss for which the lessor has been allowed de- ductions for the asset; and as another qualiﬁcation on paragraph (b), if, for an asset and a lease entered into on or after 29 October 1983, an amount cannot be determined under any of paragraphs (b) to (d), the cost price for the asset is an amount equal to the market price of the asset at the start of the term 2809 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 of the lease or, if there is no such market price or there are 2 or more, is an amount equal to the amount that, in the circumstances of the case, is reasonable, having regard to the nature of the asset and to the tenor of this deﬁnition council-controlled organisation— (a) means— (i) an organisation that is a council-controlled trad- ing organisation as deﬁned in section 6 of the Local Government Act 2002, and is not a com- pany: a company that is a council-controlled organisa- tion, under paragraph (a)(i) of the deﬁnition of council-controlled organisation in section 6(1) of the Local Government Act 2002: an organisation that is a council-controlled or- ganisation, under paragraph (b) of the deﬁnition of council-controlled organisation in section 6(1) of the Local Government Act 2002, and that has, in an organisation of a kind described in subparagraph (i) or (ii), control of at least 50% of the votes at any meeting of the members or the controlling body of the organisation, or the right to appoint at least 50% of the directors, man- agers, or trustees of the organisation (however the positions are described): an organisation that would be a
 council-con- trolled organisation of a kind described in paragraph (a) or (b) or (c) if it did not have an exemption granted under section 6(4)(i) of the Local Government Act 2002: the New Zealand Local Government Association Incorporated: a company or organisation, as deﬁned in section 6(2) of the Local Government Act 2002, that is subject to the control, directly or indirectly, of the New Zealand Local Government Association Incorporated: (ii) (iii) (iv) (v) (vi) 2810 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (vii) New Zealand Local Government Insurance Cor- poration and any subsidiaries it has: (viii) Watercare Services Limited and any subsidiaries it has: but (b) does not include Auckland Transport (as established by section 38 of the Local Government (Auckland Coun- cil) Act 2009) or Auckland Regional Holdings (as es- tablished by section 18 of the Local Government (Auck- land) Amendment Act 2004 or the New Zealand Local Government Funding Agency Limited counted associate is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section cover review period is deﬁned in section EY 30 (Transitional adjustments: life risk) credit account continuity provisions means— (a) section OB 41 (ICA debit for loss of shareholder con- tinuity); and section OC 24 (FDPA debit for loss of shareholder con- tinuity); and section OE 10 (BETA credit for loss of shareholder con- tinuity) (b) (c) credit card repayment insurance is deﬁned in section EY 30 (Transitional adjustments: life risk) credit of tax has the same meaning as tax credit credit transfer notice means a credit transfer notice issued under section 30C of the Tax Administration Act 1994 creditable membership, for a person,— (a) means membership of a KiwiSaver scheme or a com- (b) plying superannuation fund; and includes the following periods: (i) the period beginning on the ﬁrst day of a month in which a KiwiSaver contribution for the person is ﬁrst
 deducted or a contribution for the person is ﬁrst received by the Commissioner and ending on the day on which securities are ﬁrst allotted by the scheme for the person: 2811 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (ib) (ii) (iii) the period beginning on the day which the Com- missioner nominates when requested by the per- son, in circumstances where, due to matters out- side the control of the person, the ﬁrst deduc- tion of KiwiSaver contributions was delayed, and ending on the day on which securities are ﬁrst al- lotted by the KiwiSaver scheme for the person: the days in the month in which securities are ﬁrst allotted by the scheme or fund for the person: for the period beginning on 1 July 2007 and end- ing on the day on which securities are ﬁrst allot- ted by the scheme for the person, and for a person who contributes to the scheme before 1 Novem- ber 2007, the days in the month on which the scheme receives a valid application for member- ship from the person and the days remaining in the period in relation to a ﬁnancial arrangement, creditor workout, means–– (a) a compromise, as that term is deﬁned in section 227 of the Companies Act 1993, in writing that, for the parties to the ﬁnancial arrangement, is binding under Part 14, 15, or 15A of that Act, or is otherwise legally binding, to the extent to which the compromise does not cancel all of a debt: a suspension in part of the repayment of any deposit, the payment of any debt, or the discharge of any obligation, under section 44 of the Corporations (Investigation and Management) Act 1989 (b) Crown Research Institute is deﬁned in section 2 of the Crown Research Institutes Act 1992 CTR[Repealed] [Repealed] CTR account[Repealed] [Repealed] CTR additional dividend[Repealed] [Repealed] 2812 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 CTR company[Repealed] [Repealed] CTR credit[Repealed] [Repealed] CTR debit[Repealed] [Repealed] CTR group member[Repealed] [Repealed] CTR holding
 company[Repealed] [Repealed] CTR ratio[Repealed] [Repealed] CTRA[Repealed] [Repealed] current value is deﬁned in section HR 3(4) (Deﬁnitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds) date of transfer, in subpart FB (Transfers of relationship property), and in the deﬁnitions of year of transfer, for property transferred under a relationship agreement, means the date on which the property was transferred date the deposit ends— (a) is deﬁned in section EH 36 (Other deﬁnitions) for the purposes of the main income equalisation scheme: is deﬁned in section EH 62 (Other deﬁnitions) for the purposes of the adverse event income equalisation scheme: is deﬁned in section EH 79 (Other deﬁnitions) for the purposes of the thinning operations income equalisation scheme (b) (c) day is deﬁned in section RD 30(2) (Private use of motor ve- hicle: 24-hour period) for the purposes of section RD 29 (Pri- vate use of motor vehicle: formulas) de facto partner means a person who is party to a de facto relationship debenture includes debenture stock debenture holder includes the owner of debenture stock 2813 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 debt security is deﬁned in section FA 2B(4) (Stapled debt securities) deductible foreign equity distribution means a distribution by a foreign company to a company, in relation to a share in the foreign company,— (a) for which a deduction is allowed in the calculation of the income tax imposed by a country or territory other than New Zealand on the income of a person: sourced directly or indirectly out of an amount paid to the foreign company in relation to a ﬁnancial arrange- ment or share by another company if— (i) (b) (ii) the foreign company is not liable for income tax imposed by a country or territory other than New Zealand on the amount paid to the foreign com- pany; and the other company is allowed a deduction, in the calculation of the income tax imposed by
 a coun- try or territory other than New Zealand on the in- come of the other company, for the amount paid to the foreign company deductible output tax, in sections DB 2 (Goods and services tax) and EE 54 (Cost: GST) the sum of the following amounts, as applicable: (a) an amount of output tax charged in relation to a supply of goods and services that the Goods and Services Tax Act 1985 treats a registered person as making under— (i) (ii) section 5(23) of that Act: section 5B of that Act when they have no deduc- tion for any input tax on the acquisition of the goods or services: the old apportionment rules referred to in section 21H of that Act; and (iii) (b) (c) an amount that is the result of an apportionment of input tax made in relation to the supply under section 20(3C) to (3I) of that Act to the extent to which the person does not have a deduction from output tax for the full amount of input tax: an amount of output tax accounted for in relation to the supply under section 20(3J) of that Act: 2814 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (d) an amount of output tax that is the result of adjustment made in relation to the supply under sections 21 to 21H of that Act deduction, for a person, means a deduction of the person under section BD 2 (Deductions) deemed rate of return method means the method of calcu- lating FIF income or FIF loss in section EX 55 (Deemed rate of return method) deferred military pay is deﬁned in section CW 24(2) (De- ferred military pay for active service) for the purposes of that section deﬁned beneﬁt fund means a superannuation scheme, regis- tered under the Superannuation Schemes Act 1989, that must comply with section 15(1)(a) of that Act dependent child, for a child and a person,— (a) means a child— (i) whose care is primarily the responsibility of the person; and (ii) who is maintained as a member of that person’s family; and (b) (c) (iii) who is ﬁnancially dependent on that person: does not include a child in
 relation to whom— (i) a payment is made under section 363 of the Chil- dren, Young Persons, and Their Families Act 1989: a beneﬁt is being paid under section 28 or 29 of the Social Security Act 1964: (ii) despite paragraph (b)(i), includes a child or a young person, as deﬁned in section 2(1) of the Children, Young Persons, and Their Families Act 1989,— (i) of whom the person is a parent within the mean- ing of that Act; and to whom section 361 of that Act applies; and (ii) (iii) who, under section 362 of that Act, is placed in the charge of the person deposit— (a) is deﬁned in section EH 36 (Other deﬁnitions) for the purposes of the main income equalisation scheme: 2815 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) is deﬁned in section EH 62 (Other deﬁnitions) for the purposes of the adverse event income equalisation scheme: is deﬁned in section EH 79 (Other deﬁnitions) for the purposes of the thinning operations income equalisation scheme depreciable intangible property is deﬁned in section EE 62 (Meaning of depreciable intangible property) depreciable property is deﬁned in sections EE 6 (What is de- preciable property?)
and EE 7 (What is not depreciable prop- erty?)
depreciation loss— (a) means a loss that a person has in the circumstances set (b) out in section EE 1(2) (What this subpart does); and includes a deduction for depreciation that a person was allowed under an earlier Act depreciation method is deﬁned in section EE 12 (Depreci- ation methods) depreciation percentage means a percentage set by the Com- missioner under section EC 33 (Determining depreciation per- centages) depreciation recovery income— (a) means income that a person has in the circumstances set (b) out in section EE 1(3) (What this subpart does); and includes income that a person had under the correspond- ing provision of an earlier Act derivative instrument means a derivative as deﬁned in NZIAS 39 designated group investment fund is deﬁned in section HR 3(6) (Deﬁnitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds) designated source investments is deﬁned in section HR 3(7) (Deﬁnitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds) designated sources is deﬁned in section HR 3(5) (Deﬁnitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds) 2816 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) development is deﬁned in section DB 35 (Some deﬁnitions) for the purposes of that section and section DB 34 (Research or development) development investments is deﬁned in section LZ 5 (Some deﬁnitions) for the purposes of sections LZ 2 to LZ 4 (which relate to credits for certain development projects) diminished value, for an income year, means the value es- tablished by subtracting from the amount of expenditure de- scribed in sections DO 4 and DO 5, DO 12, or DP 3 (which relate to certain businesses on land) the following amounts: (a) the total income derived under section CB 28(8) (En- vironmental restoration accounts) in relation to the ex- penditure; and the total amount allowed as a deduction for the expend- iture to any person— (i) in
 an earlier income year under this Act or an earlier Act: in the income year under this Act, except an amount allowed in the income year under section DB 46, DO 5, DO 6, DO 12, or DP 3 diminishing value equivalent is deﬁned in section EC 34(4) (General rule) for the purposes of that section diminishing value method, for depreciation, is deﬁned in sec- tion EE 67 (Other deﬁnitions) diminishing value rate is deﬁned in section EE 67 (Other deﬁnitions) direct control interest is deﬁned in section EX 5 (Direct con- trol interests) direct income interest— (a) is deﬁned in section EX 9 (Direct income interests) ex- cept for the FIF rules: is deﬁned in section EX 30 (Direct income interests in FIFs) for the FIF rules (ii) (b) direct market value circumstance means a market value cir- cumstance for a company other than a market value circum- stance described in paragraph (g) of the deﬁnition of market value circumstance 2817 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 direct market value interest means a market value interest of a person in a company other than a market value interest of the person in the company to the extent to which it is treated as arising only under section YC 4(5) (Look-through rule for corporate shareholders) direct voting interest means a voting interest of a person in a company other than a voting interest of the person in the com- pany to the extent to which it is treated as arising only under section YC 4(2) (Look-through rule for corporate sharehold- ers) director— (a) means— (i) (ii) (iii) (iv) a person occupying the position of director, what- ever title is used: a person in accordance with whose directions or instructions the persons occupying the position of directors of a company are accustomed to act: a person treated as being a director by any other provision of this Act: in the case of an entity that does not have dir- ectors and that is treated as, or assumed to be, a company by a provision of this Act, any trustee,
 manager, or other person who acts in relation to the entity in the same way as a director would act, or in a similar way to that in which a director would act, were the entity a company incorpor- ated in New Zealand under the Companies Act 1993: (b) is deﬁned in section HD 15(9) (Asset stripping of com- panies) for the purposes of that section disabled workshop payment is deﬁned in section CW 33(2) (Allowances and beneﬁts) for the purposes of that section discontinuance proﬁt means the amount calculated by a life insurer following the steps in section EY 36 (Discontinuance proﬁt for income year) discontinuance proﬁt formula means the formula in section EY 37 (Discontinuance proﬁt formula (existing policies)) or the formula in section EY 38 (Discontinuance proﬁt formula (new policies)) 2818 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 discount payment date is deﬁned in section EZ 30(3) (Base premium for 1998–99 premium year under Accident Insurance Act 1998) for the purposes of that section dispose,— (a) (ii) in sections CB 6 to CB 16, CB 18, CB 19, CB 21, and CB 22 (which relate to the disposal of land), for land, includes— (i) compulsory acquisition under any Act by the Crown, a local authority, or a public authority: if there is a mortgage secured on the land, a dis- posal by or for the mortgagee as a result of the mortgagor’s defaulting under the mortgage: in sections CB 24 (Disposal of timber or right to take timber), CB 25 (Disposal of land with standing timber), DP 10 (Cost of acquiring timber or right to take timber: other cases), DP 11 (Cost of timber), and GC 2 (Dispos- als of timber rights or standing timber), includes— (i) (ii) (iii) (iv) to grant a licence or easement: to grant a right to take timber: to create a right to take timber: to create a forestry right, as deﬁned in the Forestry Rights Registration Act 1983, other than a right in favour of the proprietor: in sections CB 29 (Disposal of minerals) and DB 30 (Cost of non-speciﬁed
 mineral), includes— (i) to grant a licence or easement: to grant a right to take minerals from land: (ii) is deﬁned in section CE 2 (Value and timing of beneﬁts under share purchase agreements) for the purposes of that section: in sections CT 1, DT 2 to DT 4, DT 8 to DT 11, DT 13, DT 19, DZ 6, EJ 15, EJ 16, EJ 17, EZ 3, and GB 20 (which relate to petroleum mining),— (i) means to sell or transfer an asset, voluntarily or involuntarily; and includes to lose or destroy an asset: (ii) for depreciable property, includes destroy, withdraw, or let lapse, but does not include the following: 2819 (b) (c) (d) (e) (f) Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (g) (h) (i) (ii) for a patent application, conclude the patent ap- plication because a patent is granted in relation to the patent application: for a geothermal well, have the well stop being available for use because section EE 6(4) (What is depreciable property) no longer applies: in subpart FC (Distribution, transmission, and gifts of property) means a disposal of property in the manner provided for in that subpart: for a partner,— (i) includes surrendering or extinguishing some or all of their partner’s interests: does not include when their partner’s interests may be treated as disposed of by operation of law because another partner disposes of that partner’s interests, unless section HG 4 (Disposal upon ﬁ- nal dissolution) applies (ii) disposition of property in the trust rules, and in the deﬁnition of superannuation contribution, but not for a unit trust,— (a) means an assignment, conveyance, delivery, payment, transfer, or other alienation of property, settlement, whether at law or in equity; and (b) without limiting the generality of paragraph (a), in- cludes— (i) (ii) (iii) the issue of shares in a company: the creation of a trust: the grant or creation of a charge, lease, licence, mortgage, power, servitude, or other estate, in- terest, or right, in or over property: the abandonment,
 discharge, forfeiture, release, or surrender of a contract, debt, or thing in ac- tion, or of an estate, interest, power, or right in or over property; and for this purpose a debt, or any other estate, interest, or right, is treated as having been released or surrendered when it becomes ir- recoverable or unenforceable by action or for any reason ceases to exist: (iv) 2820 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (v) the exercise of a general power of appointment in favour of a person other than the holder of the power; and includes a disposition as deﬁned in paragraph (a) or (b) by will or intestacy; and does not include a disclaimer of an interest under a dis- position made during life or by will; and does not include a disclaimer of an interest under an intestacy (c) (d) (e) distinctive work clothing is deﬁned in section CX 30(2) (Dis- tinctive work clothing) for the purposes of that section distribution is deﬁned in section HC 14 (Distributions from trusts) for the purposes of the trust rules dividend— (a) is deﬁned in sections CD 3 to CD 20 (which relate to income from equity) for the purposes of this Act, except for the deﬁnition of investment society dividend: in the RWT rules, does not include any dividend of the kind listed in section RE 2(1)(b), (5) and (6) (Resident passive income): in the NRWT rules,— (i) includes an FDP credit attached to the dividend; and includes an amount paid to a shareholder that is a company and a person associated with the company paying the amount, if the amount is ex- cluded from dividend treatment generally only as a result of sections CD 26(2)(b) (Capital distri- butions on liquidation or emigration) and CD 44; and does not include the amount of any imputation credit attached to the dividend: (ii) (iii) in subpart LP (Tax credits for supplementary divi- dends),— (i) includes an amount paid to a shareholder that is a company and a person associated with the company paying the amount, if the amount is ex-
 cluded from dividend treatment generally only as a result of sections CD 26(2)(b) and CD 44; and 2821 (b) (c) (d) Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (e) (f) (ii) (iii) does not include any non-cash dividend; and does not include any dividend derived by a life in- surer from a company treated as resident in New Zealand because of the Commissioner granting an application under section EY 49 (Non-resident life insurer becoming resident): in sections FM 30, GB 38, OP 58, and OP 64 to OP 68 (which relate to consolidated groups), subpart OE (Branch equivalent tax accounts (BETA)), subpart OJ (Policyholder credit accounts (PCA)), in the FDP rules and the imputation rules, and in the deﬁnitions of benchmark dividend, combined imputation and FDP ratio, company dividend statement, excess credit amount, FDP credit, FDP ratio, foreign divi- dend, imputation credit, imputation ratio, pay, and shareholder dividend statement, does not include any amount treated as a dividend under section CB 34(5) (Amounts derived by members from mutual associ- ations), GB 23 (Excessive remuneration to relatives), or GB 25 (Close company remuneration to shareholders, directors, or relatives): in sections FM 30, GB 38, OP 58, and OP 64 to OP 68 (which relate to consolidated groups), subpart OE (Branch equivalent tax accounts (BETA)), subpart OJ (Policyholder credit accounts (PCA)), in the FDP rules and the imputation rules, and in the deﬁnitions of benchmark dividend, combined imputation and FDP ratio, company dividend statement, excess credit amount, FDP credit, FDP ratio, imputation credit, imputation ratio, pay, and shareholder divi- dend statement, does not include an amount treated as a dividend under section GB 1(3) (Arrangements involving dividend stripping) dividend treated as interest means a dividend that is paid in relation to a share issued by a company that is at the time of payment— (a) a company not resident in New Zealand; or 2822 Reprinted as at 29 May
 2012 Income Tax Act 2007 Part Y s YA 1 (b) (c) (d) a company whose constitution prohibits all of its income or property from being distributed to a proprietor, mem- ber, or shareholder of the company; or a company all the income of which is exempt income other than under section CW 9 (Dividend derived by company from overseas) or CW 10 (Dividend within New Zealand wholly-owned group); or a company that, in New Zealand, is engaged solely in the business of life insurance referred to in section EY 8(2)(c) (Meaning of life insurance) and is not a com- pany that maintains an FDP account because of an elec- tion made under section OC 1 (General rules for com- panies with FDP accounts) donee organisation means an entity described in section LD 3(2) (Meaning of charitable or other public beneﬁt gift) or listed in schedule 32 (Recipients of charitable or other public beneﬁt gifts) double tax agreement is deﬁned in section BH 1 (Double tax agreements) dwelling–– (a) means any place used predominantly as a place of resi- dence or abode, including any appurtenances belonging to or enjoyed with the place; but does not include any of the following: (i) (ii) (iii) (b) a hospital: a hotel, motel, inn, hostel, or boardinghouse: a serviced apartment for which paid services in addition to the supply of accommodation are pro- vided to a resident, and in relation to which a resi- dent does not have quiet enjoyment, as that term is used in section 38 of the Residential Tenancies Act 1986: a convalescent home, nursing home, or hospice: a rest home or retirement village, except to the extent that, in relation to a relevant place, it is, or can reasonably be foreseen to be, occupied as a person’s principal place of residence for inde- pendent living: a camping ground (iv) (v) (vi) 2823 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 early balance date has the meaning given in section YE 1(6) (References to balance dates and years) early life regime application day means, for
 a life insurer that chooses to apply the new life insurance rules, as provided in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009, for an income year that includes 1 July 2010, the ﬁrst day of that income year early-payment discount is deﬁned in section RC 40 (Some deﬁnitions) for the purposes of sections RC 37 to RC 39 (which relate to discounts of income tax) economic rate is deﬁned in section EE 67 (Other deﬁnitions) education grant is deﬁned in section CF 1(2) (Beneﬁts, pen- sions, compensation, and government grants) for the purposes of that section effective interest is deﬁned in section HA 43 (Meaning of effective interest) effective look-through interest is deﬁned in section HB 1(5) (Look-through companies are transparent) election day worker means a person to whom all the follow- ing apply: (a) (ii) the person is engaged as a Deputy Returning Ofﬁcer, poll clerk, interpreter, or usher, or for any other purpose, for— (i) an election or poll held under the provisions of the Electoral Act 1993 or the Local Electoral Act 2001 or the Local Restoration Polls Act 1990; or an election or poll to which any of the provisions of the Electoral Act 1993 or the Local Electoral Act 2001 or the Local Restoration Polls Act 1990 applies; or an election or poll held simultaneously with and in the same premises as an election or poll re- ferred to in subparagraph (i) or (ii); and the person is paid by the authority controlling the elec- tion or poll; and the person’s payment is exclusively for work done or services rendered immediately before, on, or immedi- ately after the day on which the election or poll is held (iii) (b) (c) 2824 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 election expiry date is deﬁned in section HC 30(5) (Treat- ment of foreign trusts when settlor becomes resident) for the purposes of that section electronic format means the format and the electronic means by which a return or particulars that are ﬁled
 electronically are provided emergency call is deﬁned in section CX 34 (Meaning of emer- gency call) emergency event means an event that was declared by the Governor-General to be an emergency event by Order in Coun- cil under section 183ABA of the Tax Administration Act 1994 emigrating company is deﬁned in section FL 1(1) (What this subpart does) emissions unit means a unit as deﬁned in section 4(1) of the Climate Change Response Act 2002 emissions unit shortfall year, for a person means an income year that— (a) is an emissions unit shortfall year for the person under section ED 1B(9)(a) (Valuation of emissions units is- sued for zero price); and has not ceased to be an emissions unit shortfall year for the person under section ED 1B(10)(c) (b) employee— (a) means a person who receives or is entitled to receive a (ab) (b) (c) PAYE income payment: for the purposes of the FBT rules, includes a share- holder-employee who has chosen under section RD 3(3) to treat amounts paid to them in the income year in their capacity as employee as income other than from a PAYE income payment: in sections CW 17, CW 17B, CW 17C, and CW 18 (which relate to expenditure, reimbursement, and allow- ances of employees) includes a person to whom section RD 3(2) to (4) (PAYE income payments) applies: in the FBT rules, and in the deﬁnition of shareholder- employee (paragraph (b)), does not include a person if the only PAYE income payment received or receivable is— 2825 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) a payment referred to in section RD 5(1)(b)(iii), (3), (6)(b) and (c) and (7) (Salary or wages): a schedular payment referred to in schedule 4, parts A and I (Rates of tax for schedular pay- ments) for which the person is liable for income tax under section BB 1 (Imposition of income tax): (d) is deﬁned in section DC 15 (Some deﬁnitions) for the purposes of sections DC 12 to DC 14 (which relate to share purchase schemes): (db) does not include an owner of a
 look-through company or a person who has a look-through interest for a look- through company, unless the owner or person is a work- ing owner: for an employer, means an employee of the employer (e) employee share loan is deﬁned in section CX 35 (Meaning of employee share loan) employee’s superannuation accumulation means the total together with any return on superannuation contributions, them, to which the complying fund rules apply, and are— employer’s superannuation cash contributions: (a) the amount of a tax credit under section MK 3 (Payment (b) of tax credits) that is treated as a Crown contribution for an employee under section MK 5 (Crown contributions for members): withheld from the employee’s salary or wages (c) employer— (a) means a person who pays or is liable to pay a PAYE income payment: includes,— (i) for an unincorporated body of persons other than a partnership, the manager or other principal of- ﬁcer: for a partnership, each partner: (ii) (iib) a look-through company, to the extent that para- graph (db) of the deﬁnition of employee does not apply: for the estate of a deceased person, a trust, a com- pany in liquidation, an assigned estate, or for any (iii) (b) 2826 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (c) other property vested or controlled in a ﬁduciary capacity, each person in whom the property has become vested or to whom control of the prop- erty has passed: the Crown: (iv) in the FBT rules, does not include a person if the only PAYE income payment that they pay or are liable to pay is— (i) a payment referred to in section RD 5(1)(b)(iii), (3), (6)(b) and (c), and (7) (Salary or wages): a schedular payment referred to in schedule 4, parts A and I (Rates of tax for schedular pay- ments): (ii) (d) is deﬁned in section RD 45(6) (Unclassiﬁed beneﬁts) for the purposes of that section: for an employee, means the employer of the employee (e) employer contribution has the same meaning as in the Kiwi- Saver Act 2006 employer
 monthly schedule means a form that an employer must provide to the Commissioner in manual format or in elec- tronic format, or that a PAYE intermediary must provide to the Commissioner in electronic format, showing— (a) (b) the name and tax ﬁle number of the employer; and the name of every person who was an employee of the employer at any time during the period to which the employer monthly schedule relates; and if supplied to the employer, the tax ﬁle number of each employee to whom paragraph (b) refers; and the tax code of each employee to whom a PAYE income payment that is not an extra pay is made; and for each employee in the month to which the schedule relates,— (i) (ii) (iii) the amount of gross earnings: the total amount of tax withheld: the total amount of tax credits under section LD 4 (Tax credits for payroll donations): the amount of earnings not liable to the earner premium; and (c) (d) (e) (iv) 2827 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (f) (g) (h) (i) (j) (k) (l) if applicable, particulars of child support deductions made, and salary or wage deductions made under the Student Loan Scheme Act 2011; and for each employee in the month to which the sched- ule relates, if applicable, the amount of total KiwiSaver contribution deductions made under Part 3, subpart 1 of the KiwiSaver Act 2006; and for each employee in the month to which the schedule relates, if applicable, the amount of employer’s super- annuation cash contributions, less any ESCT payable under the ESCT rules; and in the month in which an employee starts, the date on which they started to be an employee of the employer; and in the month in which an employee ceases, the date on which they ceased to be an employee of the employer; and the identity of each employee who received an extra pay at a rate less than the rate set out in schedule 2, part B, table 1, row 3 (Basic tax rates for PAYE income payments); and other particulars required by the Commissioner for a class of
 employer employer-sourced superannuation savings means— (a) employer’s superannuation cash contributions under section RA 5(1)(c) (Tax obligations for employment-re- lated taxes) made on or after 1 April 2000 other than— those that are treated as salary and wages under (i) section RD 68 (Choosing to have amount treated as salary or wages); or those on which ESCT has been paid at the rate set out in schedule 1, part A, clause 10(a) of the Income Tax Act 2004 before that clause was re- placed by a new clause 10(a) on 1 April 2007; and (ii) (b) (c) any return on those employer’s superannuation contri- butions; and reserves, that is, employer’s superannuation cash con- tributions under section RA 5(1)(c) made on or after 2828 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 1 April 2000 that do not vest in a member of the super- annuation fund and any return on those employer’s superannuation cash contributions, as follows: (i) for a superannuation fund with 10 or more unassociated members, reserves that have been allocated to a member of the superannuation fund, other than those allocated to an account of the member’s contributions for smoothing investment returns; or for all other superannuation funds, reserves (ii) employer’s superannuation cash contribution is deﬁned in section RD 65(1) (Employer’s superannuation cash contribu- tions) employer’s superannuation contribution means a super- annuation contribution made by an employer for the beneﬁt of 1 or more of their employees employing company is deﬁned in section DC 15 (Some def- initions) for the purposes of sections DC 12 to DC 14 (which relate to share purchase schemes) employment has a meaning corresponding to the meaning of employee, and— (a) includes the activities performed by the Governor-Gen- eral, a member of Parliament, or a judicial ofﬁcer that give rise to an entitlement to receive a PAYE income payment for the activities: is deﬁned in section ME 2(1) (Meaning of employment for this subpart)
 for the purposes of subpart ME (Min- imum family tax credit) and the deﬁnition of full-time earner (b) employment income means an amount that is income under section CE 1 (Amounts derived in connection with employ- ment) employment limitation is deﬁned in section DA 2(4) (General limitations) employment-related loan means a loan that is a fringe beneﬁt end date is deﬁned in section RA 15(3) (Payment dates for interim and other tax payments) for the purposes of that section 2829 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 engaged in full-time work[Repealed] [Repealed] entering owner–– (a) means a person who acquires an owner’s interests for a (b) look-through company: includes a person who already has owner’s interests for a look-through company when they acquire another owner’s interests entering partner— (a) means a person who acquires a partner’s interests in a (b) partnership: includes a person who is already a partner in the part- nership when they acquire another partner’s interests entitlement period is deﬁned in section MC 11(1) (Relation- ship periods and entitlement periods) for the purposes of sub- parts MA to MF and MZ (which relate to tax credits for fami- lies) environmental restoration account is deﬁned in section EK 23(3) (Other deﬁnitions) for the purposes of subpart EK (Environmental restoration accounts) equity instrument is deﬁned in section EW 15I(3) (Manda- tory use of yield to maturity method for some arrangements) for the purposes of that section ESCT— (a) means employer’s superannuation contribution tax; and relates to an employer’s superannuation cash contribu- (b) tion; and refers to an amount payable as income tax under the ESCT rules (c) ESCT rate threshold amount, for an employer’s superannu- ation cash contribution, means— (a) for an employee employed by an employer for the whole of a tax year immediately before the tax year in which the employer’s superannuation contribution is paid, the total amount of— (i) salary
 or wages derived by the employee in the previous tax year; and 2830 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (ii) the gross amount of employer’s superannuation contributions before ESCT is withheld that the employer paid on behalf of the employee in the previous tax year; or (b) (ii) if paragraph (a) does not apply, the total amount of— (i) salary or wages that the employer estimates will be derived by the employee in the tax year in which the contribution is paid; and the gross amount of employer’s superannuation contributions before ESCT is withheld that the employer estimates that they will pay on behalf of the employee in the tax year in which the con- tribution is paid ESCT rules means the provisions listed in section RD 64 (ESCT rules and their application) established activity is deﬁned in section IZ 1(12) (Use of spe- ciﬁed activity net losses) for the purposes of that section estate, for land,— (a) means an estate in the land, whether legal or equitable, and whether vested or contingent, in possession, rever- sion, or remainder; and includes a right, whether direct or through a trustee or otherwise, to— (i) (ii) (iii) does not include a mortgage the possession of the land: the receipt of the rents or proﬁts from the land: the proceeds of the disposal of the land; and (b) (c) estimated residual market value,— (a) (b) for an item of depreciable property, is deﬁned in section EE 67 (Other deﬁnitions): for high-priced livestock, means its market value at the end of its estimated useful life, estimated reasonably as at the date of acquisition and based upon an assump- tion of normal and reasonable maintenance over its es- timated useful life estimated useful life,— (a) for an item of depreciable property, is deﬁned in section EE 63 (Meaning of estimated useful life): 2831 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) (d) for high-priced livestock, means the period over which the livestock might reasonably be expected to be
 useful in deriving income or carrying on a business in New Zealand, taking into account— (i) the passage of time, likely wear and tear, exhaus- tion, and obsolescence; and an assumption of normal and reasonable main- tenance: (ii) for a listed horticultural plant, means the period of time over which the listed horticultural plant might reason- ably be expected to be useful to a person in deriving in- come or in carrying on a business in New Zealand, with the expectation based on an assumption of normal and reasonable maintenance: for a type of pasture, means the period of time over which the pasture might reasonably be expected to be useful to a person in deriving income or carrying on a farming or agricultural business on land in New Zealand excepted ﬁnancial arrangement— (a) is deﬁned in section EW 5 (What is an excepted ﬁnan- cial arrangement?)
for the purposes of this Act except the old ﬁnancial arrangements rules; and is deﬁned in section EZ 48 (Deﬁnitions) for the pur- poses of the old ﬁnancial arrangements rules (b) excess credit amount means an amount calculated under sec- tion OC 29(5) (FDP credits and imputation credits attached to dividends) for a dividend with a combined imputation and FDP ratio excess debt entity is deﬁned in section FE 4 (Some deﬁni- tions) for the purposes of subpart FE (Interest apportionment on thin capitalisation) excess debt outbound company is deﬁned in section FE 4 (Some deﬁnitions) for the purposes of subpart FE (Interest ap- portionment) excess expenditure— (a) is deﬁned in section CZ 8(2) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section: 2832 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) is deﬁned in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section imputation penalty tax: FDP penalty tax: qualifying company election tax: [Repealed] withdrawal tax excess tax payment, for a company at a time, and for the pur- poses of Part O (Memorandum accounts), means the amount at the time by which a payment made by or on behalf of the company to the Commissioner for income tax or provisional tax is more than the liability at the time of the company to pay income tax and provisional tax exchange variation is deﬁned in section CZ 3(5) (Exchange variations on 8 August 1975) for the purposes of that section excluded ancillary tax means— (a) (b) (c) (d) (e) excluded depreciable property is deﬁned in section EE 64 (Meaning of excluded depreciable property) excluded ﬁxed rate security means a ﬁxed rate share issued by a company or a debenture issued by a company, if it is a substituting debenture or stapled debt security and not a proﬁt- related debenture, when the holder of the share or debenture does not have, because of it, any right to vote or participate in any shareholder decision-making,
 except to the extent of any such right that— (a) arises only in circumstances in which the position of the holder of the share or debenture may be altered to the holder’s detriment; and is granted to the holder of the share or debenture for the purpose of assisting the holder to prevent the alteration; and at the time of the issue of the share or debenture, is not expected to arise (b) (c) excluded income is deﬁned in section BD 1(3) (Income, exempt for- eign-sourced income, and assessable income) excluded income, non-residents’ income, 2833 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 excluded option means, for a company, an option to acquire or dispose of a share in the company if— (a) the directors of the company did not know and could not reasonably be expected to know that the option had been granted; or neither the grantor of the option nor any person associ- ated with the grantor of the option at the time the op- tion is granted holds a share in the company over which the option is granted at the time the option is granted, whether directly or indirectly, but this paragraph does not apply in a case in which the grantor of the option is the company; or the option is granted on arm’s length terms, without the grant having a purpose or effect of defeating the intent and application of any provision of this Act whose ap- plication is dependent on the measurement of voting and market value interests, and the holder of the option does not have, because of it, any right to vote or participate in any shareholder decision-making, except to the ex- tent of any such right that— (i) arises only in circumstances in which the position of the holder of the option in relation to it may be altered to the holder’s detriment; and is granted to the holder of the option for the pur- pose of assisting the holder to prevent the alter- ation; and at the time of the issue of the option, is not ex- pected to arise; or (ii) (iii) the price payable to acquire the share
 on the exercise of the option is equal to or not materially different from the market value of the share at the date of exercise, and the holder of the option does not have, because of it, any right to vote or participate in any shareholder decision-making, except to the extent of any such right that— (i) arises only in circumstances in which the position of the holder of the option in relation to it may be altered to the holder’s detriment; and (b) (c) (d) 2834 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (e) (f) (ii) (iii) is granted to the holder of the option for the pur- pose of assisting the holder to prevent the alter- ation; and at the time of the issue of the option, is not ex- pected to arise; or the share is an excluded ﬁxed rate security, subject to section YC 20 (Credit account continuity provisions: excluded ﬁxed rate securities) in the case of the credit amount continuity provisions; or the option— (i) relates to a pre-1991 budget security; and (ii) was itself granted before 8.00 pm New Zealand Standard Time on 30 July 1991 (the speciﬁed time), or was granted under a binding contract entered into before the speciﬁed time no term of which is altered at any time after the speciﬁed time; and is not an option any term of which is altered at any time after the speciﬁed time (whether under a provision for roll-over or extension or under an option held at the speciﬁed time by the option holder or the grantor of the option, or both, or any other person, or otherwise), except when the term is altered under a binding contract entered into before the speciﬁed time no term of which is altered at any time after the speciﬁed time (iii) excluded preference share is deﬁned in section YC 18B (Cor- porate reorganisations not affecting economic ownership) for the purposes of that section exempt income is deﬁned in section BD 1(2) (Income, exempt income, excluded income, non-residents’ foreign-sourced in- come, and assessable income) exempt income
 limitation is deﬁned in section DA 2(3) (Gen- eral limitations) exempt interest means interest that is— (a) payable for a debt entered into under generally accepted commercial practice for the purchase of goods or ser- vices, if the purchase is made in the ordinary course of the purchaser’s taxable activity; or 2835 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) (d) (e) (f) (g) payable under a hire purchase agreement, the deﬁnition of which applies, for this purpose, as if it did not contain paragraph (g); or exempt income under section CW 8 (Money lent to gov- ernment of New Zealand) or CW 64 (Exemption under other Acts); or payable under a speciﬁed lease or a ﬁnance lease; or payable for bonus bonds or Post Ofﬁce bonus bonds (as each of those terms is deﬁned in section 2 of the Post Ofﬁce Bank Act 1987); or payable on an overpaid levy under section 173 of the Accident Compensation Act 2001; or payable by the Commissioner under section 84 of the KiwiSaver Act 2006 exemption certiﬁcate means a certiﬁcate provided by the Commissioner under section 24M of the Tax Administration Act 1994 existing business is deﬁned in section EY 28 (Shareholder base other proﬁt: proﬁt participation policies that are existing business) for the purposes of that section and section EY 29 (Shareholder base other proﬁt: proﬁt participation policies that are new business) existing farmer is deﬁned in section IZ 1(12) (Use of speciﬁed activity net losses) for the purposes of that section existing privilege is deﬁned in section 106 of the Crown Min- erals Act 1991, and includes mining privilege and mining li- cence under the Mining Act 1971 and prospecting licence or mining licence under the Petroleum Act 1937 exit level, for a multi-rate PIE, means the relationship of the entity’s tax liability to the value of the investor’s interest de- scribed in section HM 62 (Exit levels for investors) exit period, for an investor in a multi-rate PIE, means a period set out in
 section HM 63 (Exit periods) expected life risk proportion is deﬁned in section EY 25 (Pre- mium smoothing reserving amount: non-participation policies not annuities) for the purposes of that section 2836 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 expenditure— (a) is deﬁned in section DD 2(7) (Limitation rule) for the purposes of that section: is deﬁned in section DW 1(2) (Airport operators) for the purposes of that section (b) (c) expenditure on account of an employee is deﬁned in section CE 5 (Meaning of expenditure on account of an employee) exploration and development activities is deﬁned in section CW 57(2) (Non-resident company involved in exploration and development activities) for the purposes of that section exploration permit is deﬁned in section 2 of the Crown Min- erals Act 1991 exploratory material means anything acquired with explora- tory well expenditure or prospecting expenditure exploratory well means a well in a permit area, drilled for the purpose of— (a) (b) locating petroleum; or conﬁrming the existence, non-existence, quantity, or composition of petroleum; or ascertaining whether petroleum is recoverable in com- mercial quantities exploratory well expenditure— (a) means expenditure incurred by a petroleum miner in planning, drilling, testing, completing, and abandoning an exploratory well; and does not include residual expenditure (b) extended return date is deﬁned in section IC 9(3) (Date for payment and notice to Commissioner) for the purposes of Part I (Treatment of tax losses) extra pay is deﬁned in section RD 7 (Extra pay) fair dividend rate method means the method of calculating FIF income or FIF loss under sections EX 52 (Fair dividend rate method: usual method) and EX 53 (Fair dividend rate method for unit-valuing funds and others by choice) fair value method means a method under section EW 15D (IFRS ﬁnancial reporting method) of calculating income or expenditure for an income year that takes into account move- ments
 in fair value as determined under IFRSs 2837 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 family credit abatement is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) family scheme is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) family scheme income is deﬁned in section MA 8 (Some def- initions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) family tax credit is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) farmer is deﬁned in section EH 3(1)(a) (Persons to whom main income equalisation scheme applies) for the purposes of the main income equalisation scheme farm-in expenditure means expenditure that a farm-in party under a farm-out arrangement agrees that they will incur farm-out arrangement— (a) means an arrangement between a petroleum miner (the farm-out party) and a person (the farm-in party) under which the farm-in party agrees that they will incur expenditure in doing work or paying for work done in or for the permit area of the farm-out party’s petroleum permit, after the arrangement is made, and, in return, they— (i) acquire an interest in the farm-out party’s petrol- eum permit; or receive a right or option to acquire an interest in the farm-out party’s petroleum permit; or become entitled in another way to acquire an in- terest in the farm-out party’s petroleum permit; or become entitled to a direct or indirect interest in petroleum from the permit area of the farm-out party’s petroleum permit; or become entitled to a direct or indirect interest in the proﬁts, however measured, from petroleum (ii) (iii) (iv) (v) 2838 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (vi) from
 the permit area of the farm-out party’s pet- roleum permit; or become entitled to a direct or indirect right to reimbursement from petroleum from the permit area of the farm-out party’s petroleum permit; or (vii) become entitled to a direct or indirect right to reimbursement from the proﬁts, however mea- sured, from petroleum from the permit area of the farm-out party’s petroleum permit; or (viii) become entitled to a rental, royalty, or other con- sideration of whatever nature calculated by ref- erence to petroleum from the permit area of the farm-out party’s petroleum permit; or become entitled to a rental, royalty, or other con- sideration of whatever nature calculated by ref- erence to the proﬁts, however measured, from petroleum from the permit area of the farm-out party’s petroleum permit: (ix) is deﬁned in section CZ 8(2) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section: is deﬁned in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section (b) (c) FBT has the same meaning as fringe beneﬁt tax FBT rules means the provisions listed in section RD 25 (FBT rules and their application), and fringe beneﬁt tax rules has the same meaning FDP means foreign dividend payment and refers to an amount payable under the FDP rules to the Commissioner in relation to a foreign dividend FDP account means a memorandum account referred to in section OA 2(1)(b) (Memorandum accounts) FDP credit is a credit referred to in section OA 5(3) (Credits) FDP debit is a debit referred to in section OA 6(3) (Debits) FDP penalty tax means tax payable under section 140C of the Tax Administration Act 1994 2839 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) FDP ratio means the ratio set out in section OC 27 (FDP credits attached to dividends) FDP reference period is deﬁned in section OC 35(2) (Mean- ing of FDP reference period) for the purposes of sections OC
 23, and OC 36 to OC 39 (which relate to FDP credits and debits) FDP rules means— (a) section GB 41 (FDPA arrangements for carrying amounts forward): sections LF 1, LF 5, and LF 8 to LF 10 (which relate to tax credits for FDP credits): subpart OC (Foreign dividend payment accounts (FDPA)): section YA 2(2)(d) to (f) (Meaning of income tax varied) (d) FDPA means foreign dividend payment account FDPA company means a company that chooses under sec- tions OC 1(1) and OC 3 (which relate to companies with FDP accounts) to maintain an FDP account feature ﬁlm means a ﬁlm that— is produced mainly for exhibition in a cinema; and (a) is exhibited in 35mm gauge; and (b) has a continuous running time of no less than 75 minutes (c) fee is deﬁned in section RD 41(4) (Services) for the purposes of that section FIF means a foreign investment fund as deﬁned in section EX 28 (Meaning of FIF) FIF income is deﬁned in section CQ 5 (When FIF income arises) FIF loss is deﬁned in section DN 6 (When FIF loss arises) FIF net loss, for a person and for an income year in which the person has a FIF loss, means the part of the FIF loss for which the person is denied a deduction because of section DN 8 (Ring-fencing cap on deduction: attributable FIF income method), but must instead deal with under Part I (Treatment of tax losses) FIF rules means sections EX 28 to EX 72 (which relate to foreign investment funds) 2840 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 ﬁfteen percent capital reduction is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section ﬁfteen percent interest reduction is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section ﬁling taxpayer means a person, other than— (a) a person who is a non-ﬁling taxpayer for the applicable tax year: a person that is an unincorporated body of persons, if section 42 of the Tax Administration Act 1994 applies to
 require the members of the body to ﬁle separate returns of income for the applicable tax year ﬁlm, except in section CC 9 (Royalties),— (a) means a recording on any medium from which a moving (b) image may by any means be produced; and includes a part of any such recording (b) ﬁlm income means income of a person under section CC 10 (Films) ﬁlm production expenditure— (a) means— (i) (ii) (iii) an expenditure or loss incurred in producing a ﬁlm: an amount of depreciation loss on property used in producing the ﬁlm: an amount of depreciation loss from disposing of depreciable property used in producing the ﬁlm allowed under section EE 48 (Effect of disposal or event); and (b) (ii) does not include an expenditure incurred— (i) in acquiring an asset for which a deduction for an amount of depreciation loss is allowed: in acquiring a ﬁlm right after the ﬁlm is com- pleted: directly in marketing or selling a ﬁlm ﬁlm reimbursement scheme is deﬁned in section DS 4 (Meaning of ﬁlm reimbursement scheme) (iii) 2841 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ﬁlm right means a right or interest, including a future or con- tingent right or interest, of any of the following kinds: (a) (b) (c) (d) copyright in a ﬁlm; or a licence relating to the copyright in a ﬁlm; or an equitable right in the copyright in a ﬁlm; or an equitable right in a licence relating to the copyright in a ﬁlm; or any other right existing in or attaching to a ﬁlm; or a right to income, or a share of income, from the rental, sale, use, or other exploitation of a ﬁlm (e) (f) ﬁnal instalment, in relation to provisional tax, means the last instalment of provisional tax due in a transitional year ﬁnance lease means a lease of a personal property lease asset entered into by a person on or after 20 May 1999 that— (a) when the person enters the lease, involves or is part of an arrangement that involves— (i) (ii) (iii) the transfer of the ownership of the asset to the lessee or an associate of the
 lessee during or at the end of the term of the lease: the lessee or an associate of the lessee having the option of acquiring the asset for an amount that is likely to be substantially lower than the asset’s market value on the date of acquisition: a right of an associate of the lessee to acquire the asset, or a right of the lessor to require an associate of the lessee to acquire the asset, during the term of the lease under an arrangement that does not entitle the associate to receive all of the personal property lease payments that may fall due after the acquisition: (b) when the person enters the lease or from a later time, involves a term of the lease that is more than 75% of the asset’s estimated useful life as deﬁned in section EE 63 (Meaning of estimated useful life): the person enters on or after 20 June 2007 and is, or is part of, an arrangement that, when the person enters the lease or when a change in the terms of the arrangement changes the allocation or size of the risks and rewards incidental to ownership of the lease asset,— (c) 2842 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (i) (ii) (iii) involves the use of the asset outside New Zealand for all or most of the term of the lease; and involves income of any person who is not the lessor, arising from the use of the asset by any person, that is exempt income, or excluded in- come, or non-residents’ foreign sourced income; and is a ﬁnance lease under NZIAS 17 for the lessor, or for a company that is in the same group of companies as the lessor and derives assessable income from the arrangement, or is an arrange- ment under which persons who do not include the lessor bear substantially all the risks and rewards incidental to ownership of the lease asset, deter- mined as at the time the person enters the lease and taking into account later changes to the ar- rangement ﬁnance-related deduction means a deduction of a company that is part of a consolidated group, calculated as if the
 com- pany were not part of the group and determined under section FM 3 (Liability of consolidated groups and group compan- ies) for an amount, other than an amount that arises only from movement in currency exchange rates, of— (a) (b) interest incurred: expenditure under the ﬁnancial arrangements rules or the old ﬁnancial arrangements rules ﬁnancial arrangement— (a) is deﬁned in section EW 3 (What is a ﬁnancial arrange- ment?)
for the purposes of this Act except the old ﬁnan- cial arrangements rules; and is deﬁned in section EZ 48 (Deﬁnitions) for the pur- poses of the old ﬁnancial arrangements rules (b) ﬁnancial arrangements rules is deﬁned in section EW 1(2) (What this subpart does) ﬁnancial asset has the same meaning as in NZIAS 32 ﬁnancial assistance is deﬁned in section HC 36(5) (Trusts and minor beneﬁciary rule) for the purposes of that section 2843 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ﬁnancial institution means a registered bank or an entity sub- ject to the Deposit Takers (Credit Ratings) Regulations 2009 that must use IFRSs to prepare ﬁnancial statements and to which section 15 of the Financial Reporting Act 1993 applies ﬁnancial institution special purpose vehicle means a com- pany or a trustee of a trust that, ignoring section HR 9,–– (a) (b) derives no exempt income; and has all of its ﬁnancial arrangements that are its assets treated as a ﬁnancial institution’s ﬁnancial arrange- ments for ﬁnancial reporting purposes, but ignoring any current account balance that is incidental to the com- pany’s or trustees’ sole purpose described in paragraph (e); and receives only funds that— (i) relate to ﬁnancial arrangements described in paragraph (b): are incidental to the company’s or trustees’s sole purpose described in paragraph (e); and (ii) (c) (d) either–– (i) (ii) operates to guarantee liabilities of the ﬁnancial institution or of a company, incorporated in and resident in New Zealand, that is a member of a wholly-owned group of companies which in- cludes the ﬁnancial institution; or operates in relation to the company’s or trustees’ issue of residential mortgage backed securities; and (e) (f) has interests in ﬁnancial arrangements only for the sole purpose of carrying out the company’s or trustees’ op- erations described in paragraph (d)(i) or (ii); and has ﬁnancial statements that are prepared using IFRSs and are audited ﬁnancial risk is deﬁned in section EY 12 (Meaning of life reinsurance) ﬁnancial
 statements is deﬁned in section 8 of the Financial Reporting Act 1993, but the references in the deﬁnition to an entity and to a reporting entity are to be read as references to a person 2844 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 ﬁnancial value is deﬁned in section FE 20(1) (Financial value and regulatory value) for the purposes of sections FE 7, FE 19, and FE 21 to FE 23 (which relate to a New Zealand banking group’s equity threshold) ﬁnancially independent means— in full employment— (a) (i) under a contract of service or apprenticeship that requires a person to work, whether on time or piece rates, no less than an average of 30 hours each week; or as the self-employment of a person in a business, manufacture, profession, trade, or undertaking carried on for pecuniary proﬁt for not less than an average of 30 hours each week; or for any number of hours that is regarded as full- time employment for the purpose of an agree- ment, award, or contract relating to the employ- ment; or (ii) (iii) (b) (c) (d) in receipt of a basic grant or an independent circum- stances grant under the Student Allowances Regulations 1998 (SR 1998/277) or any regulations in substitution for those regulations; or in receipt of payments under a Government-assisted scheme that the chief executive of the administering department considers analogous to a beneﬁt payable under Part 1 of the Social Security Act 1964; or in receipt of a beneﬁt, as deﬁned in section 3 of the Social Security Act 1964, payable under Part 1 of the Act ﬁrst business day, in relation to provisional tax, means— (a) the ﬁrst day in an income year on which a person with a provisional tax liability derives income or incurs ex- penditure as a result of carrying on a taxable activity, if the person is not a natural person; and the day following the last day in an income year on which a person with a provisional tax liability derived income from employment, if the person is a natural per- son (b) 2845 Part Y
 s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ﬁrst payment period means the period starting on the 1st day of a month and ending with the 15th day of the month ﬁrst publication is deﬁned in section EI 3(6) (Assigning or granting copyright) for the purposes of that section ﬁsher is deﬁned in section EH 3(1)(b) (Persons to whom main income equalisation scheme applies) ﬁshing boat is deﬁned in section EJ 2(6) (Spreading forward of deductions for repairs to ﬁshing boats) for the purposes of that section ﬁshing business— (a) is deﬁned in section EH 36 (Other deﬁnitions) for the purposes of this Act except the provision to which para- graph (b) refers: is deﬁned in section EJ 2(6) (Spreading forward of de- ductions for repairs to ﬁshing boats) for the purposes of that section (b) ﬁshing quota emissions unit means an emissions unit— (a) transferred, under an allocation plan made under sec- tion 74 of the Climate Change Response Act 2002, to a person as an owner of individual transferable quota as deﬁned in section 2 of the Fisheries Act 1996; and held continuously by the person since the issue (b) ﬁxed establishment— (a) means a ﬁxed place of business in which substantial (b) (c) business is carried on by a person; and includes— (i) (ii) a branch, factory, shop, or workshop in which, in each case, substantial business is carried on; and a mine, oil well, quarry, or other place of natural resources subject to exploitation; and an agricultural, forestry, or pastoral property; and (iii) does not include— (i) the use of facilities solely for the purpose of the delivery, display, or storage of goods or merchan- dise belonging to a business; or the maintenance of a ﬁxed place of business solely for the purpose of purchasing goods or (ii) 2846 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 merchandise or for collecting information or for advertising for business ﬁxed life intangible property is deﬁned in section EE 67 (Other deﬁnitions) ﬁxed principal
 ﬁnancial arrangement— (a) means a ﬁnancial arrangement other than a variable (b) principal debt instrument: is deﬁned in section EZ 48 (Deﬁnitions) for the pur- poses of the old ﬁnancial arrangements rules ﬁxed-rate foreign equity means an interest (the equity) in the capital of a foreign company held by a company (the holder) in relation to which the foreign company makes distributions— at a rate that is a speciﬁc ﬁxed percentage of the amount (a) subscribed for the issue of the equity; or at a rate that— (i) (b) is a percentage of the amount subscribed for the issue of the equity; and has a ﬁxed relationship to economic, commodity, industrial, or ﬁnancial indices, to banking rates of interest, or to general commercial rates of inter- est; or (ii) (c) (d) at a rate that would be given by paragraph (a) or (b) but for variations due to— (i) (ii) a ﬁxed relationship to a rate of income tax: compensation to the holder for default by the for- eign company: compensation to the holder for expenditure or loss related to the holding of the equity and suf- fered by the holder or by a person associated with the holder; or (iii) equivalent to the payment of interest for money lent, having regard to— (i) (ii) whether or not the equity is redeemable: any security provided to the holder, including put or call options over the equity or an amount payable determined by reference to the amount of distributions payable: the variability or lack of variability of the distri- butions payable (iii) 2847 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ﬁxed-rate share,— (a) in sections CD 22 (Returns of capital: off-market share cancellations), GC 8, and GC 14 (which relate to trans- fer pricing arrangements between associated persons), and in the deﬁnitions of excluded ﬁxed rate security and pre-1991 budget security, means a share issued by a company if the only dividend payable on the share, disregarding any dividend payable on the issue of the share, and any imputation
 credits or FDP credits at- tached to any dividend, is payable at a rate that— (i) (ii) is described in paragraph (b), (c), or (d); and is not set with a purpose and does not have an effect of defeating the intent and application of any provision of this Act whose application is de- pendent on the measurement of voting and mar- ket value interests: (b) (c) (d) for the purposes of paragraph (a)(i), the rate is a speciﬁc ﬁxed percentage of the amount subscribed for the issue of the share: for the purposes of paragraph (a)(i), the rate is a percent- age of the amount subscribed for the issue of the share that is determined by a ﬁxed relationship to commodity, economic, ﬁnancial, or industrial indices, or to banking rates or general commercial rates of interest: for the purposes of paragraph (a)(i), the rate is a per- centage that could be of a kind referred to in paragraph (b) or (c) but for any variation in the rate of dividend that may occur only— (i) (ii) by a ﬁxed relationship to a rate of income tax; or as may be necessary to compensate the share- holder for a default on the part of the paying com- pany or expenditure or loss suffered by the share- holder, or a person associated with the share- holder, through holding the share; or by a combination of the factors in subparagraphs (i) and (ii): (iii) 2848 Reprinted as at 29 May 2012 (e) (f) (g) (h) (i) Income Tax Act 2007 Part Y s YA 1 [Repealed] in section FA 2B (Stapled debt securities), and the deﬁ- nitions of proportional-stapling company and stapled debt security, means— (i) (ii) a share described in paragraph (a): a share that would be a share described in para- graph (a) but for a dividend or a variation in the rate of dividend that may occur when the share is converted into another share (the other share) if the gain is attributable solely to a cause set out in paragraph (g): a share for which the dividend payable is the equivalent of the payment of interest for money lent, having regard to the factors set
 out in para- graph (h): (iii) for the purposes of paragraph (f)(ii), the causes are— (i) a change in value of the other share occurs in a period that starts no more than 30 days before the share is converted and ends when the share is converted, and the period was a term or condition of the share when the share was ﬁrst issued: a term or condition of the share that existed when the share was ﬁrst issued, and the term or con- dition sets the gain at a ﬁxed percentage equal to 5% or a lesser percentage of the amount sub- scribed for the share: (ii) for the purposes of paragraph (f)(iii), the factors are— whether or not the share is redeemable: (i) any security provided to the shareholder, in- (ii) cluding put or call options over the share or any amount payable determined by reference to the amount of dividend payable: the variability or lack of variability of the divi- dend payable: (iii) in section EX 46(10)(a) and subpart FE (Interest appor- tionment on thin capitalisation), means a share meeting the requirements of paragraph (f)(i) and (iii) 2849 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ﬂat-owning company is deﬁned in section CD 31(2) (Flat- owning companies) for the purposes of that section and section HA 6 (Corporate requirements) FMA means the Financial Markets Authority established under Part 2 of the Financial Markets Authority Act 2011 foreign attributed income means a company’s income for the income year that is— (a) (b) attributed CFC income: FIF income calculated under the attributed FIF income method foreign attributed loss offsets[Repealed] [Repealed] foreign company means a company that— (a) (b) is not resident in New Zealand; or is treated under a double tax agreement as not being resident in New Zealand foreign corporate limited partnership means an entity or group of persons that— (a) meets the deﬁnition of overseas limited partnership in (b) section 4 of the Limited Partnerships Act 2008; and is treated as a separate legal
 entity under the laws (other than taxation laws) of the country, territory, or jurisdic- tion where it is established foreign country is deﬁned in section DB 45(4) (Bribes paid to public ofﬁcials) for the purposes of that section foreign exempt entity is deﬁned in section CW 12(4) (Pro- ceeds of share disposal by qualifying foreign equity investor) for the purposes of that section foreign exempt partnership is deﬁned in section CW 12(4) (Proceeds of share disposal by qualifying foreign equity in- vestor) for the purposes of that section foreign exempt person is deﬁned in section CW 12(4) (Pro- ceeds of share disposal by qualifying foreign equity investor) for the purposes of that section foreign expenditure is deﬁned in section EG 1(10) (Election to use balance date used in foreign country) for the purposes of that section 2850 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 foreign income tax is deﬁned in section LJ 3 (Meaning of foreign income tax) for the purposes of Part L (Tax credits and other credits) foreign investment fund is deﬁned in section EX 28 (Meaning of FIF) foreign investment PIE means a multi-rate PIE that— (a) meets the requirements of sections HM 55C to HM 55H (which relate to the particular requirements for and treatment of foreign investment PIEs); and chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment zero-rate PIE or a foreign investment variable-rate PIE foreign investment variable-rate PIE means a foreign invest- ment PIE that— (a) meets the requirements of section HM 19C (Require- (b) (b) ments for foreign investment variable-rate PIEs); and chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment variable-rate PIE foreign investment vehicle means an entity that— (a) has become a foreign investment vehicle under section HL 5(1) (Foreign investment vehicles); and has not ceased to be a foreign investment vehicle under section
 HL 5(2) (b) foreign investment zero-rate PIE means a foreign investment PIE that— (a) meets the requirements of section HM 19B (Require- (b) ments for foreign investment variable-rate PIEs); and chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment zero-rate PIE foreign non-dividend income means income that— (a) (b) (c) does not have a source in New Zealand; and is not a dividend; and is not FIF income calculated under the fair dividend rate method foreign PIE equivalent is deﬁned in section HM 3 (Foreign PIE equivalents) 2851 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 is withheld from an amount of income; and is of substantially the same nature as NRWT foreign public ofﬁcial is deﬁned in section DB 45(4) (Bribes paid to public ofﬁcials) for the purposes of that section foreign source income is deﬁned in section EG 1(10) (Elec- tion to use balance date used in foreign country) for the pur- poses of that section foreign-sourced amount means an amount of income that is not treated as having a source in New Zealand under sec- tions YD 4 (Classes of income treated as having New Zealand source) and YZ 1 (Source rule for interest) foreign superannuation scheme means a superannuation scheme constituted outside New Zealand foreign tax, in subpart LJ (Tax credits for foreign income tax), means tax, other than New Zealand tax, that is the subject of a double tax agreement foreign trust is deﬁned in section HC 11 (Foreign trusts) foreign withholding tax means a tax, other than a New Zealand tax, that— (a) (b) forest land emissions unit means a pre-1990 forest land emis- sions unit, a post-1989 forest land emissions unit, or a forest sink emissions unit forest sink emissions unit means an emissions unit issued to a person in relation to a forest sink covenant under section 67Y of the Forests Act 1949 entered by the person forester is deﬁned in section EH 3(1)(c) (Persons to whom main income equalisation
 scheme applies) forestry assets is deﬁned in section FC 6 (Forestry assets transferred to close relatives) for the purpose of that section forestry business includes a PFSI forestry business forestry company means a company that is incorporated, under an agreement between the Crown, the Maori owners, and a holding company of the company, for the purposes of— buying land partly from the Crown, partly from the (a) Maori owners, and partly from a holding company of the company; and carrying on a forestry business on the land (b) 2852 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 formation loss, for a PIE, means an amount of tax loss or a loss balance arising from a period before the entity became a PIE as described in sections HM 66 to HM 70 (which relate to the treatment of formation losses) forward contract,— (a) in the ﬁnancial arrangements rules, means— (i) an agreement that is a conditional or an uncon- ditional agreement to acquire or dispose of prop- erty, or obtain or supply services, if the agree- ment can be settled without the property being delivered or the services being performed: an agreement that is a conditional or an uncondi- tional agreement to acquire or dispose of foreign exchange or a ﬁnancial arrangement: (ii) (b) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) friendly society means a society or credit union or association of credit unions registered or treated as registered under the Friendly Societies and Credit Unions Act 1982 fringe beneﬁt is deﬁned in section CX 2 (Meaning of fringe beneﬁt) fringe beneﬁt tax means fringe beneﬁt tax payable under sec- tion RD 26 (Liability for FBT), and FBT has the same meaning fringe beneﬁt tax rules means the provisions listed in section RD 25 (FBT rules and their application) and FBT rules has the same meaning full reinsurance is deﬁned in section EY 12(2) (Meaning of life reinsurance) full-time earner is deﬁned in section MA 7 (Meaning of full- time
 earner for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) fully credited is deﬁned in section CD 43(26) (Available sub- scribed capital (ASC) amount) for the purposes of that section fully credited for conduit tax relief[Repealed] [Repealed] fully imputed,— (a) for the purposes of sections CB 26, EX 20B, RF 8, and RF 10 (which relate to distributions by PIEs and certain 2853 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) dividends), means the amount calculated under section RF 9(2) (When dividends fully imputed or fully cred- ited): for the purposes of sections CW 15, HA 14, HA 16, and HA 19 (which relate to dividends paid by qualifying companies), means the amount calculated under section HA 15(2) (Fully imputed distributions) fund provider, for a person and a KiwiSaver scheme or a complying superannuation fund of which they are a member, means the trustees of the scheme or fund further FDP means an amount that a company may be liable to pay under sections OC 30 to OC 34 (which relate to further FDP payable by companies) further income tax means an amount of tax by way of further income tax that a company may be liable to pay under— (a) sections OB 65 to OB 70 (which relate to further tax payable by a company for a closing debit balance, or when the company stops being an ICA company): sections OK 21 or OK 22 (which relate to further tax payable by a Maori authority for a closing debit balance, or when it stops being a Maori authority) (b) futures contract means a forward contract traded on a recog- nised futures exchange gaming-machine gambling means class 4 gambling, as de- ﬁned in section 30 of the Gambling Act 2003, that utilises or involves a gaming machine gaming-machine operator’s licence means a class 4 oper- ator’s licence as deﬁned in section 4 of the Gambling Act 2003 gaming-machine venue licence means a class 4 venue licence as deﬁned in section 4 of the Gambling Act 2003
 general insurance means insurance that is not life insurance general limitation means a rule described in any of section DA 2(1) to (6) (General limitations) general partner— (a) means a general partner of a limited partnership: (b) includes a general partner of an overseas limited part- nership as deﬁned in section 4 of the Limited Partner- ships Act 2008 2854 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 general permission is deﬁned in section DA 1(1) (General permission) general power of appointment— (a) (ii) (iii) includes a power or authority that— (i) is conferred by will or conferred by a settlement during life or created in any other manner; and is exercisable orally or by instrument made dur- ing life or by will or by any other means; and enables its holder, or would enable its holder if they were of full capacity, to obtain or appoint or dispose of any property, or to charge any sum or money on any property, as the holder thinks ﬁt for their own beneﬁt; and does not include a power or authority— (i) exercisable by a person in a ﬁduciary capacity under a disposition not made by them; or exercisable as a mortgagee (ii) (b) generally accepted accounting practice is deﬁned in section 3 of the Financial Reporting Act 1993 geothermal energy proving period means, for a person’s geothermal well that is not used to exploit geothermal energy, a period— (a) starting with the completion or acquisition of the well; and other than the case of the person disposing of the well to another person, ending when the well for the fore- seeable future is not intended, and cannot reasonably be expected, to be used or available for use in— (i) (ii) deriving assessable income: carrying on a business for the purposes of deriv- ing assessable income (b) geothermal well means a bore or well solely for the purpose of investigating or exploiting geothermal energy in New Zealand gifting settlor is deﬁned in section EX 46(12) (Limits on choice of calculation methods)
 goods, in sections CX 1 (Goods and services tax), DB 2 (Goods and services tax), and EA 3 (Prepayments), and in the 2855 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 deﬁnition of services, is deﬁned in section 2 of the Goods and Services Tax Act 1985 government stock is deﬁned in section DZ 11(3) (Film reim- bursement scheme on or before 30 June 2001) for the purposes of that section Government Superannuation Fund means the fund estab- lished under the Government Superannuation Fund Act 1956 grandparented consolidated company, for a company that is part of a consolidated group and for an income year (the current income year), means a company that before 17 May 2006 chose to form or join the consolidated group, when— (a) the current income year is the 2005–06 or 2006–07 in- come year: the company carries on a business, and the total amount of the company’s ﬁnance-related deductions allocated to the income year before the current income year (the previous income year) is— (i) (b) zero, because no deductions are allocated to the previous income year; or less than 50% of the company’s total deductions allocated to the previous income year, calculated as if the company were not part of the group and determined under section FM 3 (Liability of con- solidated groups and group companies) (ii) grandparented structure means, for a person, any item on the following list, if the person acquired the item, or entered into a binding contract for the purchase or construction of the item, on or before 30 July 2009: (a) (b) (c) (d) (e) (f) grandparenting income year is deﬁned in section HA 5(5) (Elections to become qualifying company) grandparenting start day is deﬁned in section EY 30 (Tran- sitional adjustments: life risk) barns, including barns (drying): carparks (buildings): chemical works: fertiliser works: powder drying buildings: site huts 2856 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 grant-related suspensory loan means a loan— (a) that—
 (i) (ii) (iii) is made by a public authority; and is not a loan of the kind described in section CF 2(1) (Remission of speciﬁed suspensory loans); and includes the term that the liability of the borrower may be wholly or partly remitted; or (b) (c) that is made by the Rural Banking and Finance Corpor- ation of New Zealand as an irrigation suspensory loan and designated as such; or that is made by the Rural Banking and Finance Corpor- ation of New Zealand as a West Coast drainage suspen- sory loan and designated as such grey list means the list of countries in schedule 24, part A (International tax rules: grey list countries) grey list company means a company that is resident under section YD 3 (Country of residence of foreign companies) in a grey list country if either— (a) the company is liable in the country to income tax on the company’s income because the company— is domiciled in the country: (i) is resident in the country: (ii) is incorporated in the country: (iii) (iv) has its place of management in the country: the company is organised under the laws of the country and the country— (i) imposes on persons holding income interests in the company the liability for income tax on the company’s income; and under the laws of the country, is the source of 80% or more of the income of the company (ii) (b) gross, for an amount, means without any deduction from the amount gross gambling proceeds means gross proceeds, as deﬁned in regulation 3(1) of the Gambling (Class 4 New Proceeds) Regulations 2004, plus prizes group funding debt means the amount calculated under sec- tion FE 23 (Banking group’s funding debt) 2857 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Public Trust Act 2001; or Trustee Companies Act 1967; or Public Trust Ofﬁce Act 1957 group investment fund means a group investment fund estab- lished under the— (a) (b) (c) group life master policy is deﬁned in section EY 30 (Transi- tional adjustments: life risk) group of companies is deﬁned in section
 IC 3 (Common own- ership: group of companies) group of persons includes 1 person GST means goods and services tax under the Goods and Services Tax Act 1985 GST charged means GST charged under section 8(1) of the Goods and Services Tax Act 1985 GST payable in sections CX 1 (Goods and services tax), DB 2 (Goods and services tax), and DB 3(3) (Determining tax liabil- ities), has the same meaning as tax payable in section 2 of the Goods and Services Tax Act 1985, but does not include inter- est payable under Part 7 of the Tax Administration Act 1994 GST ratio is deﬁned in section RC 8(2) (GST ratio method) guaranteed residual value means an amount to which both the following apply: (a) it is equal to the value of a personal property lease asset as agreed in the lease by the lessor and the lessee; and its receipt by the lessor, on the expiry of the term of the lease, is assured or guaranteed by the lessee (b) guardian is deﬁned in section HC 36(5) (Trusts and minor beneﬁciary rule) for the purposes of that section herd livestock means a type of speciﬁed livestock that a per- son— (a) (b) chooses to value under the herd scheme; and values for an income year under sections EC 14 to EC 21 (which relate to the herd scheme) herd scheme— (a) means the livestock valuation method described in sec- tions EC 14 to EC 21 (which relate to the herd scheme); and includes the livestock valuation method set out in— (b) 2858 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (i) (ii) (iii) (iv) sections EC 14 to EC 21of the Income Tax Act 2004; and sections EL 5 and EL 6 of the Income Tax Act 1994; and section 86A of the Income Tax Act 1976 as in force before its repeal by section 21 of the Income Tax Amendment Act (No 2) 1993; and section 86D of the Income Tax Act 1976 herd value means, for an animal that is herd livestock and for an income year, the national average market value of the livestock declared for the income year herd value ratio means— (a) the ratio calculated or
 recalculated under section EC 17 (Herd value ratio) or EC 18 (Inaccurate herd value ratio) for herd livestock other than livestock on the Chatham Islands: the adjustment set by the Commissioner under section EC 19 (Chatham Islands adjustment to herd value) for herd livestock on the Chatham Islands (b) higher credit value— (a) is deﬁned in section GB 35(4) (Imputation arrange- ments to obtain tax advantage) for the purposes of that section: is deﬁned in section GB 42(4) (Maori authority credit arrangements to obtain tax advantage) for the purposes of that section (b) high-priced livestock means an animal of a type set out in schedule 17, column 1 (Types and classes of livestock) to which both the following apply: (a) a person buys it for a purchase price that is at least— (i) (ii) $500; and 5 times the national average market value, in the income year of purchase or in the previous in- come year, whichever is greater, for the class in schedule 17, column 2 in which the livestock is able to be classiﬁed at the end of the income year of purchase; and (b) at the time the person buys it,— (i) it is capable of being used for breeding; or 2859 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) it is expected to be capable of being used for breeding when it reaches maturity hire purchase agreement— (a) means— (i) an agreement under which goods are let or hired with an option to purchase, however the agree- ment describes the payments, under which the person who agrees to purchase the goods is given possession of them before the total amount payable has been paid: an agreement for the purchase of goods by in- stalment payments, however the agreement de- scribes the payments, under which the person who agrees to purchase the goods is given pos- session of them before the total amount payable has been paid; and (ii) includes an agreement to sell goods at retail under which— (i) the buyer grants security over the goods to the seller for some or all of the
 purchase price; and the property in the goods passes to the buyer sub- ject to the security, in which case the agreement is a hire purchase agreement made at the time the sale is made; and (ii) (ii) includes a sale and loan arrangement under which— (i) a person lends money on the security of goods that have been bought or are to be bought at retail if some or all of the purchase price is paid out of the proceeds of the loan; and the loan is made by the seller or by a third party, arranged by the seller, who is engaged in the busi- ness of lending money or who habitually lends money in the course of the third party’s business, in which case the arrangement is a hire purchase agreement made at the time the loan is made; and does not include an agreement under which property in the goods passes absolutely to the person who agrees to purchase them at the time of the agreement or on or at any time before delivery of the goods, unless the (b) (c) (d) 2860 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (e) (f) agreement is of a kind described in paragraph (a) or (b); and does not include an agreement made otherwise than at retail; and does not include an agreement to the extent to which the property that is the subject of the agreement is livestock or bloodstock hire purchase asset means the personal property that is the subject of a hire purchase agreement hire purchase payment means a payment made under a hire purchase agreement holder is deﬁned in section EZ 48 (Deﬁnitions) for the pur- poses of the old ﬁnancial arrangements rules holding company,— (a) for a forestry company, means a company associated with the forestry company: for a mining company, is deﬁned in section CU 29 (Other deﬁnitions) (b) home [Repealed] [Repealed] home ownership requirements means home ownership re- quirements as deﬁned in the Home Ownership Savings Act 1974 home vendor mortgage is deﬁned in section LZ 8 (Meaning of home vendor mortgage) for the purposes of sections LZ 6 and
 LZ 7 (which relate to credits for interest on home vendor mortgages) honorarium is deﬁned in section CW 62B (Voluntary activ- ities) for the purposes of that section household member [Repealed] [Repealed] housekeeper[Repealed] [Repealed] housekeeping payments[Repealed] [Repealed] ICA means imputation credit account 2861 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ICA company means a company referred to in section OB 1(1) (General rules for companies with imputation credit accounts) identical goods, for the purposes of the FBT rules, for any goods, means other goods that are the same in terms of phys- ical characteristics, quality, and reputation, except for minor differences in appearance that do not affect the value of the goods identical share means a share that confers the same rights and imposes the same obligations on a holder as an original share IFRS means a New Zealand Equivalent to International Finan- cial Reporting Standard, approved or issued under the Finan- cial Reporting Act 1993, and as amended from time to time or an equivalent standard issued in its place IFRS 4 means the IFRS, numbered NZ IFRS 4, that relates to insurance contracts IFRSE means an International Financial Reporting Standard approved by the International Accounting Standards Board, as amended from time to time impaired credit adjustment is deﬁned in section EW 15D(3) (IFRS ﬁnancial reporting method) for the purposes of that sec- tion.
implementation date is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules improvement, for an item of depreciable property, is deﬁned in section EE 67 (Other deﬁnitions) improvements, in sections CB 7 (Disposal: land acquired for purposes of business relating to land) and CB 11 (Disposal within 10 years of improvement: building business), means improvements to land that— (a) (b) by a person erecting a building or otherwise; or by an associated person erecting a building or otherwise are not minor; and are made— (i) (ii) imputation additional tax means an amount of tax arising under section OB 71 (Imputation additional tax on leaving 2862 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 wholly-owned group) or OB 72 (Imputation additional tax on joining wholly-owned group) imputation credit— (a) means a credit referred to in section OA 5(2) (Credits): is further deﬁned in section CD 16(4) (Certain dividends (b) not increased by tax credits) for the purposes of that section: is further deﬁned in section CD 17(4) (Credit transfer notice) for the purposes of that section (c) imputation credit account means the account referred to in section OA 2(1)(a) (Memorandum accounts) imputation debit means a debit referred to in section OA 6(2) (Debits) imputation group means, at a time, an imputation group formed under section FN 7 (Forming imputation groups) imputation penalty tax means tax payable under section 140B of the Tax Administration Act 1994 imputation ratio means the ratio set out in section OB 60(3) (Imputation credits attached to dividends) imputation rules means the provisions listed in section FN 2 (Imputation rules) income, for a person, means income of the person under sec- tion BD 1(1) (Income, exempt income, excluded income, non- residents’ foreign-sourced income, and assessable income) income from employment— (a) means salary or wages or an extra pay: (b) in sections DA 2(4) (General limitations) and DE 1 (What this subpart does), excludes payments
 referred to in section RD 5(1)(b)(iii) (Salary or wages) to the extent to which those payments are made to 1 of the following: a self-employed person, as deﬁned in section 2 of (i) that Act, under the Accident Compensation Act 1982; or an earner in relation to compensation for loss of earnings other than as an employee, as deﬁned under regulations made under section 167 of that Act, under the Accident Rehabilitation and Com- pensation Insurance Act 1992; or (ii) 2863 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) (iv) a self-employed person, as deﬁned in section 13 of that Act, under the Accident Insurance Act 1998, for compensation paid under schedule 1, part 2, clause 7 of that Act; or a self-employed person, as deﬁned in section 6 of the Act, under the Accident Compensation Act 2001, for compensation paid under schedule 1, part 2, clause 32 of that Act: (c) (d) in sections DA 2(4) and DE 1, includes salary, wages, or other income to which section RD 3(2) to (4) (PAYE income payments) applies: in section DA 2(4), includes excluded income derived by a person from employment income from forestry is deﬁned in section EH 34 (Meaning of income from forestry) income from mining is deﬁned in section CU 21 (Meaning of income from mining) income from personal exertion is deﬁned in section IZ 1(12) (Use of speciﬁed activity net losses) for the purposes of that section income interest,— (a) for a foreign company, is deﬁned in sections EX 8 to EX 13 (which relate to the calculation of a person’s income interest): in subparts FE (Interest apportionment on thin cap- italisation) and OE (Branch equivalent tax accounts (BETA)), and in the FDP rules and the imputation rules, means an income interest of 10% or greater under the rules in sections EX 14 to EX 17 (which relate to the 10% threshold and variations in the income interest level) (b) income statement means a statement issued by the Commis- sioner to a natural person that contains the information re-
 quired by section 80E of the Tax Administration Act 1994 income tax means income tax imposed under section BB 1 (Imposition of income tax) except to the extent to which it has a different meaning under section YA 2 (Meaning of income tax varied) 2864 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 income tax liability— (a) means, for a person,— (i) (b) (ii) an income tax liability for the person and a tax year calculated under subpart BC (Calculating and satisfying income tax liabilities), if subpara- graph (ii) does not apply; or income tax for the person and a tax year calcu- lated under subpart HM (Portfolio investment en- tities), if the person is a multi-rate PIE; and in sections EF 5 (Use of money interest payable by per- son) and EF 6 (Different tax years), includes circum- stances in which a person has no tax to pay or is entitled to a refund of tax income year means,— (a) for a person who has elected, under section 38 of the Tax Administration Act 1994 and with the Commissioner’s consent, to have a period not ending on 31 March, the elected period (which may be less than a year in some cases): for any other person, the tax year domestic purposes beneﬁt: emergency beneﬁt: independent youth beneﬁt: invalids’ beneﬁt: sickness beneﬁt: unemployment beneﬁt: (b) income-tested beneﬁt means any of the following beneﬁts paid or payable under the Social Security Act 1964: (a) (b) (c) (d) (e) (f) (g) widows’ beneﬁt increase in savings is deﬁned in section LZ 12 (Meaning of increase in savings) for the purposes of sections LZ 9 to LZ 11 (which relate to credits for savings in special accounts) independent living means occupancy of a place under an ar- rangement that–– (a) (b) does not have a level of compulsory care: has a level of compulsory care that is merely incidental to the occupancy indirect income interest is deﬁned in section EX 10 (Indirect income interests) 2865 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 initial period is
 deﬁned in section FZ 3(4) (Income of lessor under speciﬁed lease) for the purposes of that section initial provisional tax liability, means— (a) for a person who is not a natural person, or a person who is a natural person and a trustee of a trust, a provisional tax liability for a tax year in which the person starts to derive income from a taxable activity, when they did not derive income from a taxable activity in any of the 4 previous tax years; and for a person who is a natural person and not a trustee of a trust, a provisional tax liability for a tax year when— they did not have residual income tax of more (i) than $2,500 in any of the 4 previous tax years; and they have residual income tax of $50,000 or more in the tax year; and in the tax year, they stopped deriving income from employment and then started to derive in- come from a taxable activity (iii) (ii) (b) initial treatment is deﬁned in section CU 29 (Other deﬁni- tions) Inland Revenue Acts means the Acts listed in the schedule of the Tax Administration Act 1994 input tax— (a) is deﬁned in section 3A of the Goods and Services Tax Act 1985; and includes, for a supply, GST levied on goods entered for home consumption under the Customs and Excise Act 1996 (b) instalment, in sections FZ 2 to FZ 4 (which relate to speci- ﬁed leases), and in the deﬁnitions of instalment period and outstanding balance, means an amount payable by a lessee, under a lease, by way of— (a) repayment of some or all of a loan that a lessor is treated as having advanced under section FZ 2(2) (Effect of speciﬁed lease on lessor and lessee); or payment of interest; or both (b) (c) 2866 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 instalment date means a date for payment of provisional tax for a tax year that is the day and month speciﬁed for a person with a provisional tax liability in schedule 3, part A (Payment of provisional tax and terminal tax) instalment period is deﬁned in section FZ 3(4) (Income of lessor under
 speciﬁed lease) for the purposes of that section institution[Repealed] [Repealed] insurance,— (a) in section CR 3 (Income of non-resident general in- surer) means insurance of a kind described in section CR 3(3): in section YD 8 (Apportionment of premiums derived by non-resident general insurers) means insurance of a kind described in section YD 8(4)(a) (b) insurance contract includes a cover note and a renewal of an insurance contract insured person, in sections CR 3, HD 16, and YD 8 (which relate to non-resident general insurers),— (a) in relation to general insurance as described in sections CR 3(3)(a) and YD 8(4)(a), means a person who is liable to pay a premium to an insurer for the insurance and is entitled by the payment of the premium to make a claim against the insurer: in relation to a guarantee against risk as described in sections CR 3(3)(b) and (c) and YD 8(4)(b) and (c), means a person who is liable to pay a premium to an insurer for the guarantee, whether or not the payment of the premium entitles the person to make a claim against the insurer (b) insurer— (a) means a person who assumes liability under a contract (b) of insurance: in sections CR 3, DW 3, HD 16, HD 17, and YD 8 (which relate to non-resident general insurers),— (i) in relation to general insurance as described in sections CR 3(3)(a) and YD 8(4)(a), means a per- 2867 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) son who provides the insurance and to whom an insured person is liable to pay a premium: in relation to a guarantee against risk as described in sections CR 3(3)(b) and (c) and YD 8(4)(b) and (c), means a person who provides the guarantee and to whom an insured person is liable to pay a premium interest,— (a) (b) (c) for a person’s income,— (i) means a payment made to the person by another person for money lent to any person, whether or not the payment is periodical and however it is described or calculated; and does not include a redemption payment; and
 does not include a repayment of money lent: (ii) (iii) for the RWT rules and the NRWT rules, includes a re- demption payment: in sections DB 6 (Interest: not capital expenditure), DB 7 (Interest: most companies need no nexus with in- come), and DB 8 (Interest: money borrowed to acquire shares in group companies),— (i) includes expenditure incurred under the ﬁnancial arrangements rules or the old ﬁnancial arrange- ments rules; and does not to which section DB 1(1)(e) (Taxes, other than GST, and penal- ties) applies: include interest (ii) (d) for land, has the same meaning as estate interest instalment date means an instalment date— (a) on which an instalment of provisional tax is due and payable under section RC 9 (Provisional tax payable in instalments); and after which, except in a case to which section 120KC(1) of the Tax Administration Act 1994 applies, an instal- ment amount that is overpaid or underpaid attracts use of money interest, a late payment penalty, or a shortfall penalty, as applicable (b) interested shareholder is deﬁned in section HD 15(9) (Asset stripping of companies) for the purposes of that section 2868 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 intermediary means a person described in section RP 2 or RP 17 (which relate to PAYE intermediaries and tax pooling intermediaries) for the purposes of subpart RP (Intermediar- ies) internal software development is deﬁned in section LH 17 (Some deﬁnitions) for the purposes of subpart LH (Tax credits for expenditure on research and development) internal software development controller is deﬁned in sec- tion LH 17 (Some deﬁnitions) for the purposes of subpart LH (Tax credits for expenditure on research and development) internal software development group is deﬁned in section LH 17 (Some deﬁnitions) for the purposes of subpart LH (Tax credits for expenditure on research and development) international aircraft is deﬁned in section EE 67 (Other def- initions) international organisation is
 deﬁned in section CW 22(3) (Amounts derived by overseas experts and trainees in New Zealand by government arrangement) for the purposes of that section international tax rules means— (a) the following provisions: (i) section CD 21 (Attributed repatriations from con- trolled foreign companies): sections CD 45 to CD 52 (which relate to CFC attributed repatriation calculation rules): subpart CQ (Attributed income from foreign equity): section CZ 10 (Transitional relief for calculation of attributed repatriation dividends: 2 July 1992): subpart DN (Attributed losses from foreign equity): subpart EX (Controlled foreign company and for- eign investment fund rules): section FM 6(4) (Some general rules for treat- ment of consolidated groups): (ii) (iii) (iv) (v) (vi) (vii) (viii) sections GB 7 to GB 16 (which relate to avoid- ance arrangements): 2869 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (x) (ix) (xi) section GC 4 (Disposals and acquisitions of FIF attributing interests): subpart IQ (Attributed controlled foreign com- pany net losses and foreign investment fund net losses): sections LK 1 to LK 7 (which relate to foreign tax credits and CFCs): section OE 5 (Treatment of attributed CFC in- come and FIF income in this subpart): (xiii) section YA 2 (Meaning of income tax varied): (xiv) [Repealed] [Repealed] (xv) (xvi) section YD 3 (Country of residence of foreign (xii) companies); and (b) section 61 of the Tax Administration Act 1994 investment activity is deﬁned in section MB 3 (When person carries on 1 or more businesses or investment activities) for the purpose of that section investment society dividend means— (a) (b) a dividend declared by a friendly society; or a dividend declared by a registered society as deﬁned in section 2 of the Industrial and Provident Societies Act 1908; or for a building society,— (i) (ii) a dividend declared by the society; or some tangible or intangible beneﬁt that a mem- ber or a shareholder receives for disposing to the
 society of a share in the society; the beneﬁt may or may not be relief from an obligation and may or may not be convertible into money (c) investor means,— (a) for a group investment fund, a person who is entitled, by reason of the terms of the trust under which the group investment fund is established, to the income from the money, investments, and other property of the group investment fund: for a portfolio investment entity, is deﬁned in section HM 4 (Who is an investor?)
(b) 2870 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 [Repealed] (c) investor class, for a portfolio investment entity, is deﬁned in section HM 5 (What is an investor class?)
investor interest, for an investor in a portfolio investment en- tity, means an interest in the entity that gives the holder an entitlement to a distribution of proceeds from the entity’s in- vestments in-work tax credit is deﬁned in section MA 8 (Some deﬁni- tions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) issue,— (a) for a ﬁnancial arrangement, means the act of creating the ﬁnancial arrangement: is deﬁned in section YZ 1 (Source rule for interest) for the purposes of that section (b) issuer is deﬁned in section EZ 48 (Deﬁnitions) for the pur- poses of the old ﬁnancial arrangements rules joint venture agreement, for an airport operator,— (a) means an agreement made between an airport authority and the Crown acting by and through the Minister of Transport under section 94 of the Civil Aviation Act 1990; and includes any other agreement of a similar nature made between the Crown and an airport authority, whether or not the airport authority was, at the time the agreement was made, an airport authority, and whether or not the agreement was made before the commencement of the Civil Aviation Act 1990 (b) jurisdictional attributed income is deﬁned in section IQ 2B(9) (Effect of attributed CFC net loss and some FIF net loss from before ﬁrst affected year) for the purposes of that section and section LK 5B (Credits from tax year before ﬁrst affected year) jurisdictional BE income is deﬁned in section IQ 2B(9) (Ef- fect of attributed CFC net loss and some FIF net loss from before ﬁrst affected year) for the purposes of that section and section LK 5B (Credits from tax year before ﬁrst affected year) 2871 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 jurisdictional income ratio is deﬁned in section IQ 2B(9) (Ef- fect of attributed CFC net loss and some FIF net loss from before ﬁrst affected year) for the purposes of that section and section LK 5B (Credits from tax year before ﬁrst affected year) KiwiSaver contributions means a contribution
 required to be deducted under Part 3, subpart 1 of the KiwiSaver Act 2006 KiwiSaver scheme means a KiwiSaver scheme, as deﬁned in section 4 of the KiwiSaver Act 2006 land— (a) (b) includes any estate or interest in land: includes an option to acquire land or an estate or interest in land: does not include a mortgage: is deﬁned in section CB 19(3) (Business exclusion from sections CB 6 to CB 11) for the purposes of that section: is deﬁned in section IZ 1(12) (Use of speciﬁed activity net losses) for the purposes of that section: in the deﬁnitions of permit area, petroleum mining asset, prospecting expenditure, and residual expend- iture,— (i) (c) (d) (e) (f) (ii) (iii) (iv) means all land within the territorial limits of New Zealand; and includes land below the territorial sea of New Zealand or any other waters within the territorial limits of New Zealand; and includes the continental shelf; and includes the seabed and subsoil below any sea that is beyond the territorial sea of New Zealand but that, by New Zealand legislation and under international law, has been or may be designated as an area in which the rights of New Zealand relating to natural resources may be exercised land investment company means a company that, in a tax year,— (a) (b) is not a portfolio investment entity; and on 80% or more of the days in the corresponding income year on which the company has property with a market value of $100,000 or more, owns property that— 2872 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (i) (ii) consists of interests in land or shares in a land investment company that does not own, directly or indirectly, shares in the company; and has a market value of 90% or more of the market value of all the property of the company; and (c) meets the requirements of section HM 12 (Income types) land loss is deﬁned in section HM 65(3) (Use of land losses of investor classes) for the purposes of that section land provisions means the following provisions: (a) sections
 CB 7 to CB 11 (which relate to certain land land used for transactions), except CB 8 (Disposal: landﬁll, if notice of election): section CB 15 (Transactions between associated per- sons): sections FB 3 to FB 5 (which relate to the transfer of land on a settlement of relationship property) (b) (c) (b) (c) large budget ﬁlm grant means a payment that— (a) is in the nature of a large budget screen production grant or post-production digital and visual effects grant; and is made in relation to a ﬁlm or television production; and is authorised by the New Zealand Film Commission in relation to a company that— (i) (ii) is resident in New Zealand: has a permanent establishment in New Zealand late balance date has the meaning given in section YE 1(7) (References to balance dates and years) lease— (a) means a disposition that creates a leasehold estate: (b) in sections DZ 9 (Premium paid on land leased before 1 April 1993) and EZ 8 (Premium paid on land leased before 1 April 1993),— (i) means a disposition by which a leasehold estate is created; and includes a licence: (ii) for the purposes of subpart EE (Depreciation), includes a licence to occupy: (c) 2873 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (d) in sections EJ 10 (Personal property lease payments), EX 21(30) and (31) (Attributable CFC amount and net attributable CFC income or loss: calculation rules), FA 6 to FA 11 (which relate to ﬁnance leases), FZ 2 to FZ 4 (which relate to speciﬁed leases) and in the deﬁni- tions of cost price (paragraphs (b) to (e)), ﬁnance lease, guaranteed residual value, initial period, instalment, lessee (paragraph (b)), lessor (paragraph (b)), oper- ating lease, outstanding balance, personal property lease asset, speciﬁed lease, and term of the lease,— (i) means an agreement under which a lessor trans- fers to a lessee for the term of the lease a personal property lease asset or the right to possess a per- sonal property lease asset in consideration for a personal property
 lease payment; and includes a sublease; and includes a licence to use intangible property; and includes a hire or bailment; and includes a lease that is 2 or more consecutive or successive leases treated as 1 lease because the same personal property lease asset had been leased to the same lessee or an associated person of the lessee under the consecutive or successive leases and the Commissioner, having regard to the tenor of this paragraph, regards the consecu- tive or successive leases as 1 lease; and does not include a hire purchase agreement, the deﬁnition of which applies, for this purpose, as if it did not contain paragraph (f); and (ii) (iii) (iv) (v) (vi) (e) (f) (vii) does not include an assignment of a hire purchase agreement, the deﬁnition of which applies, for this purpose, as if it did not contain paragraph (f): is deﬁned in section GC 5(5) (Leases for inadequate rent) for the purposes of that section: in the ﬁnancial arrangements rules, means— a lease as described in paragraph (d): (i) an arrangement that would be a lease as described (ii) in paragraph (d) if the arrangement did not relate to real property, livestock, or bloodstock 2874 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 leasehold estate includes any estate, however created, other than a freehold estate legal defeasance means a defeasance in which the release of a party to a ﬁnancial arrangement or an excepted ﬁnancial arrangement from the primary obligation of the ﬁnancial ar- rangement or the excepted ﬁnancial arrangement is— acknowledged formally by the creditor; or (a) acknowledged formally by a duly appointed trustee or (b) agent of the creditor; or established by legal judgment (c) legal expenses is deﬁned in section DB 62 (Deduction for legal expenses) for the purposes of that section legal life is deﬁned in section EE 67 (Other deﬁnitions) less than 10% holder is deﬁned in section YC 15(3) (Direct- ors’ knowledge of failure to meet requirements of continuity
 provision) for the purposes of that section lessee,— (a) for a lease as described in paragraph (c) of the deﬁnition of lease, includes the holder of a licence to occupy: for a lease as described in paragraph (d) of the deﬁnition of lease,— (i) means a person who leases a personal property lease asset from a lessor; and (ii) includes a trustee or assignee of the person: for a hire purchase agreement, means the person who obtains the use of, or the right to use, the hire purchase asset under the agreement (b) (c) lessor,— (a) for a lease as described in paragraph (c) of the deﬁnition of lease, includes the grantor of a licence to occupy: for a lease as described in paragraph (d) of the deﬁnition of lease,— (i) means a person who assembles, manufactures, purchases, or otherwise acquires a personal prop- erty lease asset and leases it to a lessee; and includes a trustee or assignee of the person: (ii) for a hire purchase agreement,— (b) (c) 2875 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) means the person who grants to the lessee the use of, or the right to use, a hire purchase asset under the agreement; and includes an assignee of the person in relation to the hire purchase agreement levy, for a statutory producer board, means a sum payable by a member of the board under a power of the board to require or request the member to pay an amount of levy licence-speciﬁc assets is deﬁned in section DZ 5(6) (Farm- out arrangements for petroleum mining before 16 December 1991) for the purposes of that section life ﬁnancial reinsurance is deﬁned in section EY 12 (Mean- ing of life reinsurance) life fund PIE means a separate identiﬁable fund forming part of a life insurer that— (a) meets the requirements of section HM 7 (Require- (b) (c) (d) ments); and chooses to become a PIE under section HM 71 (Choos- ing to become PIE); and has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and holds investment subject to life
 insurance policies under which beneﬁts are directly linked to the value of the investments held in the fund life insurance is deﬁned in sections EY 8 (Meaning of life in- surance) and EY 14 (Life insurance and life reinsurance: how sections relate) Life Insurance Fund means a Life Insurance Fund as deﬁned in section 15 of the Life Insurance Act 1908 and, for a life insurer, means the life insurer’s Life Insurance Fund life insurance policy— (a) is deﬁned in sections EY 9 (Meaning of life insurance policy) and EY 14 (Life insurance and life reinsurance: how sections relate); and (b) when referred to in relation to a life insurer, means a life insurance policy under which the life insurer is the insurer 2876 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 life insurance rules is deﬁned in section EY 1(2) (What this subpart does) life insured means— (a) a human being on whose death or survival the payment of a beneﬁt under a life insurance policy is contingent, including the payment of an annuity whose term is con- tingent on human life; and a human being to whom an annuity whose term is not contingent on human life is payable under a life insur- ance policy (b) life insurer— (a) is deﬁned in sections EY 10 (Meaning of life insurer) and EY 14 (Life insurance and life reinsurance: how sections relate): is deﬁned in section CX 11(3) (Employment-related loans: loans by life insurers) for the purposes of that section: in section YC 17 (Demutualisation of insurers), and in the FBT rules, means a person carrying on a business of providing life insurance (b) (c) life reinsurance is deﬁned in sections EY 12 (Meaning of life reinsurance) and EY 14 (Life insurance and life reinsurance: how sections relate) life reinsurance policy— (a) is deﬁned in sections EY 13 (Meaning of life reinsur- ance policy) and EY 14 (Life insurance and life rein- surance: how sections relate); and (b) when referred to in relation to a life reinsurer, means a life reinsurance policy under
 which the life reinsurer is the reinsurer life reinsurer is deﬁned in sections EY 12(4) (Meaning of life reinsurance) and EY 14 (Life insurance and life reinsurance: how sections relate) life risk means an actuarially determined risk contingent on human life life risk component–– (a) means–– 2877 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) for a premium paid under a life insurance pol- icy, the amount of the premium that gives rise to income derived by the life insurer for providing services, including the bearing of life risk: for a claim payable under a life insurance policy, the amount of the claim that gives rise to deduc- tions for the life insurer for providing services, including the bearing of life risk: (b) does not include an amount that is a savings component limitation rule is deﬁned in section DD 1(3) (Entertainment expenditure generally) limited attribution company is a company that is— (a) (b) a building society: a co-operative company registered under Part 2 or 3 of the Co-operative Companies Act 1996: a listed company: a widely-held company: a foreign company that is not a closely-held company (c) (d) (e) limited non-transaction shares is deﬁned in section CD 34B (Distributions to members of co-operative companies) limited partner means a limited partner of a limited partner- ship or an overseas limited partnership as deﬁned in section 4 of the Limited Partnerships Act 2008 limited partnership— (a) means a limited partnership registered under the (b) (c) Limited Partnerships Act 2008; and includes an overseas limited partnership as deﬁned in section 4 of that Act; and despite paragraph (a) or (b), does not include a listed limited partnership or a foreign corporate limited part- nership limited partnership deduction is deﬁned in section HG 11(12) (Limitations on deductions by partners in limited partnerships) for the purposes of that section limited-recourse amount is deﬁned in section GB 48(2) (De- ﬁned terms for
 sections GB 45 and GB 46) for the purposes of sections GB 45 and GB 46 (which relate to arrangements involving money not at risk) 2878 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 limited-recourse loan is deﬁned in section GB 48(3) (Deﬁned terms for sections GB 45 and GB 46) for the purposes of sec- tions GB 45 and GB 46 (which relate to arrangements involv- ing money not at risk) lines trust means a trustee of a trust that— (a) (ii) has had shares allocated or transferred to or vested in it, being shares in— (i) an energy company as deﬁned in section 2(1) of the Energy Companies Act 1992 under an ap- proved establishment plan under that Act: a company under section 76 of the Energy Com- panies Act 1992: a company to which have been transferred assets and liabilities of the Crown under section 16 of the Southland Electricity Act 1993; and continues to hold shares described in paragraph (a) (iii) (b) liquidation, for a company,— (a) includes— (i) (ii) removal of the company from the register of com- panies under the Companies Act 1993; and termination of the company’s existence under any other procedure of New Zealand or foreign law; and (b) includes, in references in this Act to anything occurring on liquidation, anything occurring— (i) during the period that starts with a step that is legally necessary to achieve liquidation, includ- ing the appointment of a liquidator or a request of the kind referred to in section 318(1)(d) of the Companies Act 1993; and for the purpose of enabling liquidation (ii) listed company means, at any time, a company any shares in which are at that time quoted on an ofﬁcial list of a recognised exchange listed horticultural plant, in sections DO 5 to DO 9 (which relate to deductions relating to horticultural plants),— (a) means a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is of a type that is listed in a determination made by the Commis- 2879 Part Y s YA 1 Income Tax
 Act 2007 Reprinted as at 29 May 2012 (b) sioner under section 91AAB of the Tax Administration Act 1994: does not include— (i) a tree planted mainly for the purposes of timber production: a tree or other similar plant planted mainly for the purposes of ornamentation: a vine planted mainly for the purposes of produc- ing grapes for wine production (ii) (iii) listed limited partnership means an entity or group of per- sons that is listed on a recognised exchange, and that entity or group of persons— (a) is a limited partnership registered under the Limited Partnerships Act 2008; or (b) meets the deﬁnition of overseas limited partnership in section 4 of that Act listed PAYE intermediary means a person which the Com- missioner may list as an intermediary under section 15G of the Tax Administration Act 1994 listed PIE means a company that— (a) is listed on a recognised exchange in New Zealand or meets the requirements of section HM 18 (Require- ments for listed PIEs: unlisted companies); and (b) meets the requirements of section HM 7 (Require- (c) (d) (e) (f) ments); and chooses to become a PIE under section HM 71 (Choos- ing to become PIE); and has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and is not a life fund PIE; and has not chosen under section HM 2(3) (What is a port- folio investment entity?)
to become a multi-rate PIE livestock on the Chatham Islands means livestock that are on hand on the Chatham Islands at the end of an income year living alone payment means a living alone payment under— section 74U of the War Pensions Act 1954; or (a) section 18A of the Social Welfare (Transitional Provi- (b) sions) Act 1990; or 2880 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (c) section 13 of the New Zealand Superannuation and Re- tirement Income Act 2001 has the same meaning as money lent: in sections CD 27 (Property made available intra-group) and CD 39 (Calculation of amount of dividend when property made available) and in the FBT rules, includes any amount that a person advances or gives as princi- pal under a ﬁnancial arrangement, but not an excepted ﬁnancial arrangement: for a holding company and a mining company, is de- ﬁned in section CU 29 (Other deﬁnitions): is deﬁned in section CZ 3(5) (Exchange variations on 8 August 1975) for the purposes of that section local authority— (a) means a local authority as deﬁned in the Local loan,— (a) (b) (c) (d) (b) Government Act 2002: includes— (i) the administering body, as deﬁned in the Reserves Act 1977, of any reserve classiﬁed under the Act as a recreation reserve or a scenic reserve: an airport authority, other than an airport com- pany, as deﬁned in the Airport Authorities Act 1966: the Aotea Centre Board of Management es- tablished by the Auckland Aotea Centre Empowering Act 1985: the council of the Auckland Institute and Mu- seum constituted under the Charitable Trusts Act 1957: the Canterbury Museum Trust Board continued in existence by section 5(1) of the Canterbury Museum Trust Board Act 1993: the Otago Museum Trust Board continued in ex- istence by section 5(1) of the Otago Museum Trust Board Act 1996: (ii) (iii) (iv) (v) (vi) 2881 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (vii) Auckland Transport (as established by section 38 of the Local Government (Auckland Council) Act 2009): (viii) other than for the purposes
 of section CW 39(4) (Local authorities), Auckland Regional Holdings as established by section 18 of the Local Govern- ment (Auckland) Amendment Act 2004: the New Zealand Local Government Funding Agency Limited while it is a council-controlled organisation within the meaning of section 6(1) of the Local Government Act 2002 (ix) (c) (b) (d) logbook term is deﬁned in section DE 8 (Logbook term) long-term bailment is deﬁned in section EC 27 (Some deﬁni- tions) for the purposes of subpart EC (Valuation of livestock) look-through company means an entity–– (a) that is described in paragraph (a) of the deﬁnition of company; and that, treating the entity as a company for the purposes of this deﬁnition, is resident in New Zealand under section YD 2 (Residence of companies); and that is not treated under, or for the purposes of, a double tax agreement as not resident in New Zealand; and for which there are 5 or fewer look-through counted owners, treating look-through counted owners who are relatives, ignoring any later death or dissolution of mar- riage, union, or relationship, as 1 person; and for which all owners have only look-through interests; and that is not a ﬂat-owning company; and for which an election under section HB 13 (Valid elec- tions) has been received by the Commissioner look-through company deduction is deﬁned in section HB 11(12) (Limitation on deductions by persons with inter- ests in look-through companies) look-through counted owner means, for an entity, a person who–– (a) is a natural person that–– is not a trustee; and (i) has a look-through interest for the entity: (ii) (f) (g) (e) 2882 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) (c) (d) is a natural person who has derived, as beneﬁciary in- come of a trust, income that arose from a direct or in- direct beneﬁcial interest in a look-through interest for the entity for the current income year or 1 of the last 3 income years: is a trustee of a trust that–– (i) has a look-through
 interest for the entity or that has a direct or indirect beneﬁcial interest in a look-through interest for the entity, treating co-trustees as 1 person; and has not distributed, as beneﬁciary income, all in- come that arose from a direct or indirect beneﬁ- cial interest in a look-through interest for the en- tity for the current income year and all of the last 3 income years: (ii) is a natural person that has a voting interest or a market value interest in relation to a company that has derived, as beneﬁciary income from a trust, income that arose from a direct or indirect beneﬁcial interest in a look- through interest for the entity for the current income year or 1 of the last 3 income years look-through interest means a person’s shares in an entity, or in a look-through company (LTC) treating the look-through company as a company for the purposes of this deﬁnition, if— every other shareholder in the entity or LTC has the (a) same rights, proportionally, as the person to vote or par- ticipate in any decision-making concerning— (i) the distributions to be made by the entity or LTC; and the entity’s or LTC’s constitution; and varying the capital of the entity or LTC; and appointing or electing directors of the entity or LTC; and (ii) (iii) (iv) (b) every other shareholder has the same rights, proportion- ally, as the person in relation to when the entity or LTC distributes its proﬁts or its assets if the entity or LTC acquires, redeems, or cancels its shares, or reduces or returns its share capital, whether on liquidation or not; and 2883 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) the entity or LTC has only shareholders that are natural persons, or corporate trustees loss— (a) includes an amount of depreciation loss, except when any of paragraphs (b) to (d) applies: (b) means an attributed CFC loss when used in the expres- sion “attributed CFC income or loss”: (c) means a net attributable FIF loss when used in the ex- pression “net
 attributable FIF income or loss”: (d) means a FIF loss when used in the expression “FIF in- come or loss” loss balance, for a tax year,— (a) means the sum of all tax loss components— (i) (ii) arising in the tax year and included in the tax loss for the tax year under section IA 2(3) and (4) (Tax losses), to the extent not used under section IA 3(1) to (3) or IA 4(1)(a) (which relate to the ﬁrst use and to particular losses): arising in an earlier tax year and carried forward under section IA 3(4) to the tax year, to the ex- tent not used under section IA 3(1) to (3) or IA 4(1)(a): (b) does not include a tax loss component included in a company’s loss balance at the end of the tax year if the requirements of section IA 5 (Restrictions on compan- ies’ loss balances carried forward), as modiﬁed by sec- tions IZ 4 to IZ 6 (which relate to tax losses for tax years before 1992), have not been met loss period is deﬁned in section IQ 7(4) (When group mem- bership lacking in loss period) for the purposes of that section low-turnover trader is deﬁned in section EB 13(2) (Low- turnover valuation) for the purposes of subpart EB (Valuation of trading stock (including dealer’s livestock)) lump sum payment is deﬁned in section EI 3(6) (Assigning or granting copyright) for the purposes of that section MACA means Maori authority credit account main deposit is deﬁned in section EH 36 (Other deﬁnitions) 2884 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 main income equalisation account is deﬁned in section EH 36 (Other deﬁnitions) main income equalisation scheme means the scheme re- ferred to in section EH 1(2)(a) (Income equalisation schemes) main maximum deposit is deﬁned in section EH 35 (Meaning of main maximum deposit) major shareholder, for a close company, means any person who— (a) owns, or has the right to acquire, at least 10% of the ordinary shares of the company: has the power to control, directly or indirectly, at least 10% of the ordinary shares of the
 company: owns, or has the right to acquire, at least 10% of the voting and market value interests in the company: has the power to control, directly or indirectly, at least 10% of the voting and market value interests in the com- pany: has, in any other way, 10% or more of the control of the company (b) (c) (d) (e) Maori authority means a person who has made an election under section HF 11 (Choosing to become Maori authority) Maori authority credit, for a distribution by a Maori author- ity, means— (a) (b) a credit referred to in section OA 5(8) (Credits): the amount treated as attached to the distribution under section RE 24 (When amount of tax treated as Maori authority credit) Maori authority credit account means the account referred to in section OA 2(1)(g) (Memorandum accounts) Maori authority credit account return means a return that must be ﬁled under section 70B of the Tax Administration Act 1994 Maori authority credit ratio means the ratio set out in section OK 19 (Maori authority credits attached to distributions) Maori authority debit means a debit referred to in section OA 6(8) (Debits) Maori authority rules means the provisions listed in section HF 1(2) (Maori authorities and the Maori authority rules) 2885 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Maori incorporation is deﬁned in section 4 of the Maori Land Act 1993 Maori investment company means a company that is incorp- orated for the purpose of acquiring shares or debentures issued by a forestry company for unpaid purchase money for Maori land bought by the forestry company from the Maori owners Maori land means Maori freehold land as deﬁned in the Maori Land Act 1993 Maori owners— (a) means the persons who have a beneﬁcial interest in Maori land bought by a forestry company; and includes every trustee for a Maori owner, the Maori Trustee, and every Maori incorporation that has a bene- ﬁcial interest in the land (b) market interest is deﬁned in section RD 35(5) (Employment- related
 loans: value using market interest rates) for the pur- poses of that section market value,— (a) for a share or option quoted on the ofﬁcial list of a recog- nised exchange, at the time, means an amount equal to the middle market quotation at the time for a share or option having the same terms as the share or option to be valued, unless the quotation is not a fair reﬂection of the market value, having regard at the time to the matters referred to in paragraph (e) of the deﬁnition of recog- nised exchange: for a share or option not quoted on the ofﬁcial list of a recognised exchange at the time, means the amount that a willing purchaser would pay to acquire the share or option in an arm’s length acquisition at the time and that is determined using a method that— (i) conforms with commercially acceptable practice; and (ii) may, in appropriate cases, have regard to the pre- sent value at the time of the company’s antici- pated income or cash ﬂows and the realisable value at the time of the company’s assets; and results in a valuation that is fair and reasonable: (iii) (b) 2886 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (c) (d) (e) (f) in subpart EB (Valuation of trading stock (including dealer’s livestock)), does not include any GST that would be charged on the disposal by a person of their trading stock if the disposal would be a taxable supply: is deﬁned in section EX 70 (Market value of life policy and superannuation entitlements) for certain purposes of sections EX 28 to EX 72 (which relate to the FIF rules): is deﬁned in section RD 27(3) (Determining fringe beneﬁt values) for the purposes of that section: is deﬁned in section RD 40(3) (Goods) for the purposes of that section market value circumstance, for a company at any time,— (a) means an occasion or situation in which, at the time, the company has on issue a debenture— (i) that is not an excluded ﬁxed rate security or pre- 1991 budget security; and to which section FA 2 (Recharacterisation
 of cer- tain debentures) or FA 2B (Stapled debt secur- ities) applies: (ii) (b) (c) also means an occasion or situation in which, at the time,— (i) the company has on issue a share that is not an excluded ﬁxed rate security or a pre-1991 budget security; and the payment of a dividend is guaranteed or se- cured to the holder by some person other than the company; and the directors of the company know or could rea- sonably be expected to know at the time that the payment of a dividend is so guaranteed or se- cured: (ii) (iii) also means an occasion or situation in which, at the time, an option exists that— (i) (ii) (iii) is not an excluded option; and is to acquire a share in the company; and is granted by the company or a person other than the company: 2887 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (d) (e) (f) (g) also means an occasion or situation in which, at the time, an option exists that— (i) (ii) is not an excluded option; and is to require a person to acquire a share in the company: also means an occasion or situation in which, at the time, an arrangement or a series of related or connected arrangements exists that— (i) relates to shares or options over shares in the company issued by the company or any other per- son; and has a purpose or effect of defeating the intent and application of any provision of this Act whose application is dependent on the measurement of voting and market value interests: (ii) does not exist under any of paragraphs (a) to (e) if, at the time, no share in the company has a value higher than zero, except for an excluded ﬁxed rate security or a pre-1991 budget security, and no option over a share in the company has a value higher than zero, except for an excluded option: also means an occasion or situation in which, at the time,— (i) under any of paragraphs (a) to (e), a direct market value circumstance exists for another company (the shareholder company); and the shareholder company is associated with the company;
 and under section YC 4 (Look-through rule for cor- porate shareholders), any fraction of any market value interest held, or treated under section YC 4 as held, by the shareholder company in the com- pany is treated as held by any other person (ii) (iii) market value interest— (a) means, for a person and a company and a time, the per- centage market value interest that the person is treated as holding in the company at the time under sections YC 2 to YC 20 (which relate to the measurement of con- trol and ownership interests): 2888 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) is further deﬁned in section HA 44 (Measuring effective interests) for the purposes of subpart HA (Qualifying companies (QC) and loss-attributing qualifying com- panies (LAQC)) and the deﬁnition of effective interest master fund means— (a) a group investment fund that derives category A in- come; or a public unit trust (b) maturity,— (a) in the ﬁnancial arrangements rules, means,— (i) for an agreement for the sale and purchase of property or services or an option, the date on which the agreement or option ends: for any other ﬁnancial arrangement, the date on which the last payment contingent on the ﬁnan- cial arrangement is made: (ii) (b) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) maximum account balance is deﬁned in section EK 23 (Other deﬁnitions) for the purposes of subpart EK (Environ- mental restoration accounts) maximum deﬁcit debit is deﬁned in section OC 36 (Meaning of maximum deﬁcit debit) for the purposes of section OC 23 (FDPA breach of FDP ratio by PCA company) maximum payment is deﬁned in section EK 22 (Meaning of maximum payment) for the purposes of subpart EK (Environ- mental restoration accounts) maximum permitted ratio, for an imputation credit, an FDP credit, or a Maori authority credit, means a ratio calculated under section OA 18 (Calculation of maximum permitted ra- tios) maximum pooling value is deﬁned in section EE 65
 (Meaning of maximum pooling value) measurement period, for an income year of a reporting bank, means 1 of the measurement periods for the income year de- scribed in section FE 8 (Measurement dates) for the purposes of subpart FE (Interest apportionment on thin capitalisation) 2889 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 member,— (a) in sections CD 33(1) (Payments corresponding to no- tional distributions of producer boards and co-operative companies) and OB 73 to OB 75 (which relate to im- putation credit accounts of statutory producer boards), and in the deﬁnitions of levy and produce transactions, for a statutory producer board and for an income year, means a person who— (i) (ii) is resident in New Zealand; and carries on in the year a farming or agricultural or other business in relation to which the board has special statutory functions; and is liable to pay a levy to the board for the year or enters into produce transactions with the board during the year: (iii) (b) (c) (d) (e) [Repealed] in subpart HE (Mutual associations) in relation to a statutory producer board and to an income year, means a person who— (i) is liable for the year to pay a levy to the statutory producer board; or during the year, supplies produce or goods to the statutory producer board, in terms of the body’s primary statutory functions: (ii) is deﬁned in section RE 30(10) (When unincorporated bodies hold certiﬁcates) for the purposes of that section: in the Maori authority rules, means a person, or group of persons, who is— (i) a shareholder of a Maori authority that is a com- pany: a beneﬁciary of a Maori authority that is the trustees of a trust (ii) member credit contribution, for a person, means the total of the following amounts: (a) an amount of a superannuation contribution to the per- son’s KiwiSaver scheme or complying superannuation fund that is subject to the KiwiSaver scheme rules or complying fund rules, as applicable, other than— 2890 Reprinted as at
 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (i) (ii) an employer’s superannuation cash contribution made for the person: a contribution withdrawn under a mortgage di- version facility provided for in regulations made under section 229 of the KiwiSaver Act 2006: (iib) Crown contribution (as that term is deﬁned in the (b) KiwiSaver Act 2006) for the person: an amount accounted for under paragraph (b): (iii) an amount received and held for the person by the Com- missioner that is an amount to which section 73, 74, or 75 of the KiwiSaver Act 2006 applies, other than— (i) an employer’s superannuation cash contribution made for the person: an amount received and held by the Commis- sioner but not paid to the provider of the person’s KiwiSaver scheme in the relevant member credit year unless the amount has not been paid because of the person’s death or because of a refund under section 113 of the KiwiSaver Act 2006 (ii) in relation to a superannuation includes any return on the contribution member’s contribution, fund,— (a) means a member’s contribution to the fund; and (b) memorandum account means an account listed in section OA 2(1) (Memorandum accounts) mineral— (a) means all minerals and metals; and (b) includes clay, coal, gravel, kauri gum, precious stones, sand, and stone minibus means a motor vehicle, designed wholly or mainly for the carriage of persons, the interior of which contains— (a) 3 seats, each of which— (i) is designed for the seating of 2 or more adult persons; and is permanently ﬁxed to the motor vehicle; and is neither collapsible nor capable of being folded down; or (ii) (iii) (b) more than 3 seats, of which not less than 3 are each— 2891 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) (iii) designed for the seating of 2 or more adult per- sons; and permanently afﬁxed to the motor vehicle; and neither collapsible nor capable of being folded down minimum family tax credit is deﬁned in section MA 8 (Some deﬁnitions for family
 scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) minimum market value interest— (a) is deﬁned in section IA 5(6) (Restrictions on compan- ies’ loss balances carried forward) for the purposes of Part I (Treatment of tax losses): is deﬁned in section LP 4(3) (Continuity rules for carry- ing credits forward) for the purposes of that section (b) minimum voting interest— (a) is deﬁned in section IA 5(6) (Restrictions on compan- ies’ loss balances carried forward) for the purposes of Part I (Treatment of tax losses): is deﬁned in section LP 4(3) (Continuity rules for carry- ing credits forward) for the purposes of that section (b) mining company is deﬁned in section CU 22 (Meaning of mining company) mining development expenditure is deﬁned in section CU 23 (Meaning of mining development expenditure) mining exploration expenditure is deﬁned in section CU 24 (Meaning of mining exploration expenditure) mining holding company is deﬁned in section CU 29 (Other deﬁnitions) mining operations is deﬁned in section CU 25 (Meaning of mining operations) mining or prospecting right is deﬁned in section CU 29 (Other deﬁnitions) mining outgoing excess is deﬁned in section DU 7(4) (Limit on deduction) mining permit is deﬁned in section 2 of the Crown Minerals Act 1991 and includes an existing privilege under paragraphs (a) and (b) of the deﬁnition of existing privilege in section 106 of that Act 2892 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 mining permit area means an area, and may include more than 1 area, of— (a) (b) a mining permit; or an existing privilege referred to in paragraphs (a) and (b) of the deﬁnition of existing privilege in section 106 of the Crown Minerals Act 1991 mining prospecting information is deﬁned in section CU 29 (Other deﬁnitions) mining purposes is deﬁned in section CU 29 (Other deﬁni- tions) mining share is deﬁned in section CU 29 (Other deﬁnitions) mining venture is deﬁned in section CU 26
 (Meaning of min- ing venture) Minister means the Minister of Finance minor is deﬁned in section HC 35(3) (Beneﬁciary income of minors) for the purposes of that section and sections HC 36, HC 37, LE 4, and LF 2 (which relate to beneﬁciary minors) money,— (a) in section GB 48 (Deﬁned terms for sections GB 45 and GB 46), in the ﬁnancial arrangements rules, and in the deﬁnition of security payment, includes— (i) money’s worth, whether or not convertible into money: the right to money, including the deferral or can- cellation of some or all of an obligation to pay money: (ii) (b) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) money lent means— (a) an amount of money that a person lends in some way, including by depositing it in an account, whether or not the lending is secured or evidenced in writing: an amount of credit that a person gives, including by not enforcing a debt, whether or not the giving is secured or evidenced in writing: an amount of money that a person lends, or credit that a person gives, under an obligation or arrangement, whether or not secured or evidenced in writing: (b) (c) 2893 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (d) an amount of money that goes from a person (person A) to another person (person B) in consideration for per- son B’s promise to pay person A an amount of money and that is less than the amount that person B promises to pay person A.
For the purposes of this paragraph,— money goes from person A when it is paid to (i) person B: person B’s promise is not required to be secured or evidenced in writing: person B includes any other person with whom person B is an associated person (iii) (ii) monthly instalment plan is deﬁned in section EZ 30(3) (Base premium for 1998–99 premium year under the Accident Insur- ance Act 1998) for the purposes of that section mortgage means a mortgage, charge, or other security, whether legal or equitable motor vehicle,— (a) in subpart DE (Motor vehicle expenditure), means a motor vehicle that— (i) (ii) (iii) is a road vehicle, whenever or however used; and is not a trailer; and is of the kind ordinarily used for the carriage of persons or the transport or delivery of goods or animals: (b) in the FBT rules, and in the deﬁnition of car,— (i) is deﬁned in section 2(1) of the Land Transport Act 1998; and does not include a vehicle the gross laden weight of which is more than 3500 kilograms (ii) multi-rate PIE means a company, superannuation fund, or group investment fund that— (a) meets the requirements of section HM 7 (Require- ments); and chooses to become a PIE under section HM 71 (Choos- ing to become PIE); and has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and is not a beneﬁt fund PIE; and (b) (c) (d) 2894 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 [Repealed] (e) mutual transaction means a transaction of the kind described in section HE 2 (Classes of mutual transaction) entered into between an association and its members, or with members and other persons who are not members national average market value, for a class of livestock and for an income year, means the national average market value determined under section EC 15 (Determining national aver- age market values) for livestock of the class for the income year national standard cost scheme means the livestock valuation method speciﬁed in section EC 22 (National standard cost scheme) natural person is
 deﬁned in section FE 4 (Some deﬁnitions) for the purposes of subpart FE (Interest apportionment on thin capitalisation) natural resource includes— (a) land: (b) water: (c) (d) (e) (f) (g) (h) (i) air: soil or subsoil below land, water, or air: a mineral: a geographic or geological feature: a part of the electromagnetic spectrum: a form of energy: a living organism, whether naturally or artiﬁcially gen- erated: an ecosystem: a right to or interest in an item referred to in any of the preceding paragraphs (j) (k) net attributable CFC income, for a foreign company and for an accounting period, means the amount calculated for the ac- counting period under section EX 20C(1)(a) (Net attributable CFC income or loss) net attributable CFC loss, for a foreign company and for an accounting period, means the amount calculated for the ac- counting period under section EX 20C(1)(b) (Net attributable CFC income or loss) 2895 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 net attributable FIF income, for a FIF and for an accounting period, means an amount of zero or more calculated for the accounting period under section EX 50(3) (Attributable FIF income method) net attributable FIF loss, for a FIF and for an accounting period, means an amount of less than zero calculated for the accounting period under section EX 50(3) (Attributable FIF income method) net family scheme income is deﬁned in section ME 3 (Mean- ing of net family scheme income) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) net gambling proceeds means net proceeds as deﬁned in sec- tion 4 of the Gambling Act 2003 net income means net income for a tax year calculated under section BC 4 (Net income and net loss) net loss means a net loss for a tax year calculated under section BC 4 (Net income and net loss) and reduced by the amount extinguished by the Commissioner under section 177C(5) of the Tax Administration Act 1994 net mining loss is deﬁned in section IS
 1(3) (General treat- ment of mining companies’ net losses) for the purposes of sub- part IS (Mining companies’ and petroleum miners’ tax losses) new asset is deﬁned in section EZ 24 (Meaning of new asset) new business is deﬁned in section EY 29 (Shareholder base other proﬁt: proﬁt participation policies that are new business) for the purposes of that section new company tax rate person,–– (a) means a person who uses a 28% basic tax rate for the (b) (c) 2011–12 income year or later income years: includes, for the purposes of subpart OZ (Terminating provisions), a multi-rate PIE: does not include, for the purposes of subpart RZ (Ter- minating provisions), a multi-rate PIE new personal tax rate person means a person whose basic rate of income tax is calculated under schedule 1, part A, clause 1 for the 2010–11 income year or a later income year 2896 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 new reporting standard is deﬁned in section DB 35 (Some deﬁnitions) for the purposes of section DB 34 (Research or development) new start grant means a grant of money that is— (a) designated by the Minister of Agriculture as a new start grant; and paid by the Government of New Zealand to a person in relation to an emergency event (b) New Zealand includes— (a) (b) the continental shelf: the water and the air space above any part of the contin- ental shelf that is beyond New Zealand’s territorial sea, as deﬁned in section 3 of the Territorial Sea, Contigu- ous Zone, and Exclusive Economic Zone Act 1977, if and to the extent to which— (i) any exploration or exploitation in relation to the part, or any natural resource of the part, is or may be undertaken; and the exploration or exploitation, or any related matter, involves, or would involve any activity on, in, or in relation to the water or air space (ii) New Zealand banking group, for a registered bank, means the New Zealand banking group referred to in sections FE 36 and FE 36B (which identify the members of a
 New Zealand banking group) for the purposes of subpart FE (Interest appor- tionment on thin capitalisation) New Zealand business, in relation to a life insurer not resi- dent in New Zealand, means the part of the business of the life insurer that consists of life insurance policies or life reinsur- ance policies offered or entered into in New Zealand New Zealand emissions unit means a New Zealand unit as deﬁned in section 4(1) of the Climate Change Response Act 2002 New Zealand net equity, for a New Zealand banking group is the amount referred to in section FE 21 (Banking group’s New Zealand net equity) for the purposes of subpart FE (Interest apportionment on thin capitalisation) 2897 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 New Zealand-new asset is deﬁned in section EZ 25 (Meaning of New Zealand-new asset) New Zealand partnership means a partnership that— (a) is a limited partnership registered under the Limited Partnerships Act 2008; or has 50% or more of its partners’ interests in capital, by value, held by New Zealand residents; or has its centre of management in New Zealand ignoring section HG 2 (b) (c) New Zealand repatriation amount is deﬁned in section CD 46 (New Zealand repatriation amount) New Zealand resident— (a) means a person resident in New Zealand under— (i) (ii) section EY 49 (Non-resident life insurer becom- ing resident): sections YD 1 to YD 3 (which relate to resi- dence): (b) is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) New Zealand superannuation— (a) means New Zealand superannuation payable under Part 1 of the New Zealand Superannuation and Retirement Income Act 2001; and includes— (i) (b) a living alone payment payable to a New Zealand superannuitant under section 13 of the New Zealand Superannuation and Retirement Income Act 2001; and an amount payable under section 70(3)(b) of the Social Security Act 1964; and
 national superannuation payable, before 1 April 1994, under Part 1 of the Social Welfare (Transi- tional Provisions) Act 1990; and (ii) (iii) (c) does not include— (i) (ii) portable New Zealand superannuation; or a supplement or beneﬁt paid or payable under any of sections 61DB, 61DC, 61DD, 61DE, 61EA, 61G, and 69C of the Social Security Act 1964 2898 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 New Zealand superannuitant, for a tax year,— (a) means a person who receives New Zealand superannu- (b) ation in the tax year; and does not include a person who receives New Zealand superannuation at a rate speciﬁed in— (i) schedule 1, clause 2 of the New Zealand Super- annuation and Retirement Income Act 2001; or schedule 1, clause 2 of the Social Welfare (Tran- sitional Provisions) Act 1990 (ii) New Zealand tax means income tax imposed by this Act or any earlier Act Niue International Trust Fund means the trust governed by the Deed concerning the Niue International Trust Fund dated 25 October 2006 and signed by Her Majesty the Queen in right of New Zealand and the Governments of Niue and Australia nominated company,— (a) for a consolidated group, means the company described in section FM 34 (Nominated companies) for the time being nominated as agent of the group under section FM 35 (Forming consolidated group): for an imputation group, means the company described in section FN 6 (Nominated companies) for the time being nominated as agent of the group under section FN 7 (Forming imputation groups) (b) nominee, in sections RE 7 and RE 8 (which relate to resident passive income paid to trustees and nominees) means a person described in section YB 21(2) (Transparency of nominees) non-attributing active CFC is deﬁned in section EX 21B (Non-attributing active CFCs) non-attributing Australian CFC is deﬁned in section EX 22 (Non-attributing Australian CFCs) non-cash dividend means a dividend to the extent to which it does not consist of— (a) (b) an unconditional
 payment in money; or an unconditional credit in money to the balance of a shareholder’s current or other form of account with the company 2899 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 non-complying trust is deﬁned in section HC 12 (Non-com- plying trusts) non-concessionary rate of interest, for an employment-re- lated loan made on or before 31 March 1985, means the rate of interest declared by regulations to be the non-concessionary rate of interest for the period of 12 consecutive months, ending on 31 March, in which the loan was made non-contingent fee means a fee that— (a) is for services provided for a person becoming a party to a ﬁnancial arrangement; and is payable whether or not the ﬁnancial arrangement pro- ceeds (b) non-discretionary trust is deﬁned in section HC 16(8) (Ordering rule for distributions from non-complying and foreign trusts) for the purposes of that section non-executive director is deﬁned in section CD 20(4) (Bene- ﬁts of shareholder-employees or directors) non-ﬁling taxpayer means— (a) (ii) (iii) a person to whom section 33A(1) of the Tax Adminis- tration Act 1994 applies and to whom 1 of the following applies: (i) they do not receive an income statement for a tax year; or the Commissioner is not required to send them an income statement for a tax year; or the Commissioner is prohibited from sending them an income statement for a tax year; or a person whose only income having a source in New Zealand is schedular payments derived in the person’s capacity as a non-resident entertainer and who chooses not to ﬁle a return for the relevant tax year; or a person who, in the relevant tax year, derives only non- resident passive income to which section RB 3 (Schedu- lar income tax liability for ﬁling taxpayers for non-resi- dent passive income) applies (b) (c) non-integral fee means a fee or transaction cost that, for the purposes of ﬁnancial reporting under IFRSs, is not an integral part of the effective interest rate of a
 ﬁnancial arrangement 2900 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 non-Kyoto greenhouse gas unit means a unit that is— (a) issued by reference to the sequestration, reduction, or avoidance of emission, of human-induced greenhouse gases; and veriﬁed to an internationally recognised standard; and not an emissions unit (b) (c) non-listed horticultural plant, in section DO 4 (Improve- ments to farm land) and schedule 20, part A, item 8 (Expend- iture on farming, horticultural, aquacultural, and forestry im- provements)— (a) means— (i) a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is not a listed horticultural plant: a tree or other similar plant planted mainly for the purposes of ornamentation: (ii) (b) does not include a tree planted mainly for the purposes of timber production non-participating redeemable share is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) non-refundable tax credit means— (a) (ab) (b) (c) (d) (e) (f) (g) a tax credit under subpart LC (Tax credits for natural persons): a tax credit under section LD 4 (Tax credits for payroll donations): a tax credit under subpart LJ (Tax credits for foreign income tax): a tax credit under subpart LK (Tax credits relating to attributed controlled foreign company income): [Repealed] a tax credit under subpart LR (Tax credits for policy- holder income): an amount in a person’s branch equivalent tax account or policyholder credit account that the person chooses, under Part O (Memorandum accounts), to credit in pay- ment of income tax: a tax credit under sections LS 3(3) and (4) and LS 4(3) and (4) (which relate to multi-rate PIEs and certain of their investors) and under section LS 1 (Tax credits for 2901 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 multi-rate PIEs) to the extent to which it arises under section HM 51 (Use of foreign tax credits by PIEs) non-resident means a person who is not a
 New Zealand resi- dent non-resident aircraft operator is deﬁned in section CW 56(3) (Non-resident aircraft operators) for the purposes of that section non-resident company means a company that is not a New Zealand resident non-resident contractor, in the PAYE rules, means a person who— (a) is not resident in New Zealand under subpart YD (Resi- dence and source in New Zealand); and undertakes under a contract, agreement, or arrangement (other than a contract of service or apprenticeship)— (i) (ii) to perform services of any kind in New Zealand: to supply the use, or right to use, in New Zealand any personal property or services of another per- son (b) non-resident crew member is deﬁned in section CW 21(2) (Amounts derived by visiting crew of pleasure craft) for the purposes of that section non-resident entertainer is deﬁned in section CW 20(4) (Amounts derived by visiting entertainers including sportsper- sons) for the purposes of that section, and in the PAYE rules, means a person who— (a) is not resident in New Zealand under subpart YD (Resi- dence and source in New Zealand); and undertakes a Part F activity [Repealed] (b) (c) non-resident investment company is deﬁned in section LZ 5 (Some deﬁnitions) for the purposes of sections LZ 2 to LZ 4 (which relate to credits for certain development projects) non-resident mining operator is deﬁned in section CU 29 (Other deﬁnitions) non-resident passive income is deﬁned in section RF 2 (Non- resident passive income) 2902 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 non-resident person is deﬁned in section CW 22(3) (Amounts derived by overseas experts and trainees in New Zealand by government arrangement) for the purposes of that section non-resident seasonal worker means a non-resident person employed under the recognised seasonal employment scheme to undertake work in New Zealand non-resident taxpayer is deﬁned in section HD 26(2) (Agency in relation to non-residents generally) for the pur- poses of
 sections HD 27 and HD 28 (which relate to employers and certain payments) non-resident trader means a person who— (a) (b) is in New Zealand; and carries on business here without having a ﬁxed and per- manent place of business or home here non-residents’ foreign-sourced income is deﬁned in section BD 1(4) (Income, exempt income, excluded income, non-resi- dents’ foreign-sourced income, and assessable income) non-residents’ foreign-sourced income limitation is deﬁned in section DA 2(6) (General limitations) non-speciﬁed livestock means livestock other than blood- stock, high-priced livestock, and speciﬁed livestock non-standard accounting year has the meaning given in sec- tion YE 1(5) (References to balance dates and years) non-standard balance date has the meaning given in section YE 1(5) (References to balance dates and years) non-standard income year has the meaning given in section YE 1(5) (References to balance dates and years) non-taxable bonus issue means a bonus issue that is not a taxable bonus issue normal retiring age is deﬁned in section DC 15 (Some deﬁ- nitions) for the purposes of sections DC 12 to DC 14 (which relate to share purchase schemes) notice is deﬁned in section 3(1) of the Tax Administration Act 1994 notice of entitlement means a notice issued under section 80KD(2) of the Tax Administration Act 1994 2903 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 notice period is deﬁned in section FM 38(6) (Notice require- ments on forming or joining consolidated group) for the pur- poses of that section notiﬁed investor rate, for a multi-rate PIE and an investor, means an investor rate notiﬁed under section HM 60 (Notiﬁed investor rates) or a notiﬁed investor rate under section HM 58 (Transition of rate for certain investors) notiﬁed foreign investor means an investor in a foreign in- vestment PIE who— (a) meets the requirements of sections HM 55D(3) and (4) (Requirements for investors in foreign investment PIEs); and notiﬁes the PIE
 under section HM 55D(2) that they wish to be treated as a notiﬁed foreign investor (b) notify means to give notice notional offshore investment amount, for a reporting bank, is the amount referred to in section FE 22(2) (Notional offshore investment) for the purposes of section FE 21(14) (Banking group’s New Zealand net equity) notional sale price is deﬁned in section FA 10(2) (Treatment when lease ends: lessor acquiring asset) for the purposes of that section novelty is deﬁned in section LH 7(4) (Research and develop- ment activities and related terms) for the purposes of subpart LH (Tax credits for expenditure on research and development) NRWT means non-resident withholding tax and refers to an amount payable as income tax under the NRWT rules NRWT rules means the provisions listed in section RF 1 (NRWT rules and their application) NZIAS 2 means New Zealand Equivalent to International Ac- counting Standard 2, approved or issued under the Financial Reporting Act 1993 and as amended from time to time, or an equivalent standard issued in its place NZIAS 8 means New Zealand Equivalent to International Ac- counting Standard 8, approved or issued under the Financial Reporting Act 1993 and as amended from time to time, or an equivalent standard issued in its place 2904 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 NZIAS 17 means New Zealand Equivalent to International Accounting Standard 17, approved or issued under the Finan- cial Reporting Act 1993 and as amended from time to time, or an equivalent standard issued in its place NZIAS 23 means New Zealand Equivalent to International Accounting Standard 23, approved or issued under the Finan- cial Reporting Act 1993 and as amended from time to time, or an equivalent standard issued in its place NZIAS 28 means New Zealand Equivalent to International Accounting Standard 28 approved by the Accounting Stand- ards Review Board and as amended from time to time, or an equivalent standard issued in its place
 NZIAS 31 means New Zealand Equivalent to International Accounting Standard 31 approved by the Accounting Stand- ards Review Board and as amended from time to time, or an equivalent standard issued in its place NZIAS 32 means New Zealand Equivalent to International Accounting Standard 32, approved or issued under the Finan- cial Reporting Act 1993 and as amended from time to time, or an equivalent standard issued in its place NZIAS 39 means New Zealand Equivalent to International Accounting Standard 39, approved or issued under the Finan- cial Reporting Act 1993 and as amended from time to time, or an equivalent standard issued in its place NZIAS 41 is deﬁned in section EB 6(3) (Cost) for the purposes of that section offered or entered into in New Zealand, for an insurance contract, a reinsurance contract, and a life insurance policy, means a contract or policy offered or entered into in New Zealand, whether or not— (a) (b) the contract or policy is executed in New Zealand; or the insurer under the contract or policy— is resident in New Zealand; or (i) has a ﬁxed establishment in New Zealand; or (ii) has an agent in New Zealand (iii) offered or was offered or entered into, in sections EY 12 (Meaning of life reinsurance) and EY 48 (Non-resident life 2905 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 insurers with life insurance policies in New Zealand), has the same meaning as offered or entered into in New Zealand off-market cancellation means a share cancellation that is not an on-market cancellation offshore permit area is deﬁned in section CW 57 (Non-resi- dent company involved in exploration and development activ- ities) for the purposes of that section old company tax rate means a 30% or 33% basic tax rate applying before the 2011–12 income year old ﬁnancial arrangements rules means— (a) the following provisions: (i) sections EZ 33 to EZ 52 (which relate to the old ﬁnancial arrangements rules): section FF 2 (Financial arrangements) of the In- come
 Tax Act 2004, as that section was before the commencement of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999: sections RA 11 and RA 12 (which relate to ad- justments to correct errors); and (ii) (iii) (b) the following provisions of the Tax Administration Act 1994: (i) section 60 (as in force before the enactment of section 70 of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999): section 90 (ii) old reporting standard is deﬁned in section DB 35 (Some deﬁnitions) for the purposes of section DB 34 (Research or development) on-market cancellation means an acquisition by a company of a share in the company if— (a) the company acquires the share in a transaction occur- ring on a recognised exchange, through a broker or some other similar agent independent of the company; and before the transaction, no arrangement existed between the shareholder and the company for the company to acquire the share; and (b) 2906 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (c) (d) the acquisition is not a treasury stock acquisition to which section CD 25 (Treasury stock acquisitions) ap- plies, but this paragraph does not limit the application of section CD 25(2) to (6); and it includes an acquisition of the company’s shares on the recognised exchange that is undertaken by an associated person under an arrangement for the associate to acquire the shares in lieu of the company is not a ﬁnance lease; and is entered into on or after 20 May 1999 operating lease means, except in section EW 15I(1)(b)(iib) (Mandatory use of yield to maturity method for some arrange- ments), a lease that— (a) (b) operational allowance is deﬁned in section CW 23(4) (In- come for military or police service in operational area) for the purposes of that section operational area is deﬁned in section CW 23(4) (Income for military or police service in operational area) for the purposes of that section option, in sections FB 10 (Continuity provisions: shares and options),
 GB 5 (Arrangements involving trust beneﬁciaries), and YC 2, YC 3, YC 5, YC 8, and YC 9 (which relate to the measurement of control and ownership interests), and in the deﬁnitions of excluded option, market value (paragraphs (a) and (b)), market value circumstance (paragraphs (c) to (f)), pre-1991 budget security, recognised exchange, and share- holder decision-making right, includes an agreement for sale at a time when beneﬁcial ownership of the property sold has not completely passed to the purchaser ordering rule means the rule set out in section CD 23(1) (Ordering rule and slice rule) for calculating the amount of available subscribed capital per share original share means a share in a company that is described as the original share in the deﬁnition of returning share transfer other amortisation provision means a provision of this Act that has similar intent and application to sections EE 1 (What this subpart does), EZ 7 (Buying patent rights before 1 April 2907 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 1993), and EZ 8 (Premium paid on land leased before 1 April 1993) output tax is deﬁned in section 2 of the Goods and Services Tax Act 1985 outstanding balance,— (a) in section FA 10 (Treatment when lease ends: lessor ac- quiring asset), includes principal, interest, and penalties that are owing by the lessee to the lessor on the date that the lease is terminated is deﬁned in section FZ 2(9) (Effect of speciﬁed lease on lessor and lessee) for the purposes of sections FZ 2 and FZ 3 (which relate to speciﬁed leases) (b) outstanding claims reserve means–– (a) (b) for an insurer who uses IFRS 4, the amount of the in- surer’s outstanding claims liability for general insur- ance contracts, excluding contracts having premiums to which section CR 3 (Income of non-resident general in- surer) applies, as that liability is measured under Ap- pendix D, paragraphs 5.1 to 5.2.12 of IFRS 4 for the insurer’s ﬁnancial statements less the amount of rein- surance
 and non-reinsurance recoveries receivable, as measured for the ﬁnancial statements: for a life insurer, the amount that would be the life insurer’s outstanding claims reserve under section EY 24(3) and (4) (Outstanding claims reserving amount: non-participation policies not annuities) for general insurance contracts, excluding contracts having premiums to which section CR 3 applies, if section EY 24(3) and (4) were modiﬁed so as to apply to general insurance contracts and reinsurance contracts, instead of to life insurance policies and reinsurance contracts overseas pension is deﬁned in section CW 28(2) (Pensions) for the purposes of that section overtime is deﬁned in section CW 17C(4) (Payments for over- time meals and certain other allowances) for the purposes of that section 2908 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 own,— (a) (b) for land, means to have an estate or interest in the land, alone or jointly or in common with any other person: for the ownership of depreciable property, is deﬁned in sections EE 2 to EE 5 (which relate to depreciation) ownership interest is deﬁned in section YC 18(6) (Reverse takeovers) for the purposes of that section and section YC 18B (Corporate reorganisations not affecting economic ownership) owner’s interests means the relevant interests in rights and obligations and other property, status, and things that a person who has an effective look-through interest for a look-through company has as a result of applying section HB 1 (Look- through companies are transparent) or otherwise paid work [Repealed] [Repealed] parental entitlement period means the period of time de- scribed in section MD 11(1)(b)(i) (Entitlement to parental tax credit) parental tax credit is deﬁned in section MA 8 (Some deﬁni- tions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) Part F activity is deﬁned in schedule 4, part F, clause 7 (Rates of tax for schedular payments) partial
 reinsurance is deﬁned in section EY 12(3) (Meaning of life reinsurance) participating share is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section partner, in relation to a partnership,— (a) means a person who is a member of the partnership: (b) includes— (i) (ii) (iii) a limited partner of a limited partnership: a general partner of a limited partnership: a joint venturer or a co-owner, if they make the relevant choice to be treated as partnership: partner’s associate is deﬁned in section HG 11(12) (Limita- tion on deductions by partners in limited partnerships) for the purposes of that section 2909 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) partner’s interests means the relevant interests in rights and obligations and other property, status, and things that a part- ner has as a result of applying section HG 2 (Partnerships are transparent) partnership means— (a) a group of 2 or more persons who have, between them- selves, the relationship described in section 4(1) of the Partnership Act 1908: a joint venture, if the joint venturers all choose to be treated as a partnership for the purposes of this Act and the Tax Administration Act 1994: co-owners of property, other than persons who are co-owners only because they are shareholders of the same company, or settlors, trustees, or beneﬁciaries of the same trust, if the co-owners all choose to be treated as a partnership for the purposes of this Act and the Tax Administration Act 1994: a limited partnership (d) partnership share means, for a particular right, obligation, or other property, status, or thing, the share that a partner has the partnership it patent right means the right to do or authorise anything that would, but for the right, be an infringement of a patent pay,— (a) for an amount and a person, includes— to distribute the amount to them: (i) to credit them for the amount: (ii) to deal with the amount in their interest
 or on their (iii) behalf, in some other way: (b) (bb) (c) for a dividend that is a bonus issue, means to issue shares or to give credit for the shares comprising the bonus issue: is deﬁned in section LD 4(7) (Tax credits for payroll donations) for the purposes of that section and section LD 8(1) (Meaning and ranking of payroll donation) and for section 24Q of the Tax Administration Act 1994: is deﬁned in section RD 51(6) (Calculation of all-inclu- sive pay) for the purposes of that section 2910 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 pay period, for an employee receiving regular payments of salary or wages, means the period for which any such payment is payable PAYE means pay-as-you-earn and refers to an amount payable as income tax under the PAYE rules PAYE income payment is deﬁned in section RD 3 (PAYE income payments) PAYE income payment form, for an employer, means a form authorised by the Commissioner that shows— the period to which the form relates; and (a) the name of the employer; and (b) the tax ﬁle number of the employer; and (c) the total amounts of tax withheld and paid; and (d) the total amount of child support payments; and (e) the total amount of salary or wage deductions made (f) under the Student Loan Scheme Act 2011; and the total KiwiSaver contribution deductions made under the KiwiSaver Act 2006, Part 3, subpart 1; and the amount of an employer’s superannuation cash con- tribution and the amount of ESCT withheld and paid; and the amount of an employer’s superannuation cash con- tribution and the amount of tax withheld and paid, other than that described in paragraph (h); and other similar information that the Commissioner may require (h) (g) (i) (j) PAYE intermediary, for an employer, means— (a) a person who— (i) is accredited as a PAYE intermediary by the Commissioner under section 15D or 15G of the Tax Administration Act 1994; and has entered an agreement with the employer, ap- plying to employees of the employer, that has
 been approved by the Commissioner under sec- tion 15J of that Act; and has entered into agreements that have been ap- proved by the Commissioner under section 15J of that Act with not less than 10 employers: (ii) (iii) (b) a person who— 2911 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) no longer meets the requirements of paragraph (a); and has responsibilities under section RP 2(3) (PAYE intermediaries) PAYE rules means the provisions listed in section RD 2(1) (PAYE rules and their application) payer, in the RWT rules, means a person who makes a pay- ment of resident passive income payment relating to incapacity for work is deﬁned in section CW 34(2) (Compensation payments) for the purposes of that section payroll donation is deﬁned in section LD 8 (Meaning and ranking of payroll donation) PCA means policyholder credit account PCA company means a company described in section OJ 1(1) (General rules for companies and other persons with policy- holder credit accounts) PCA person means a person who chooses under section OJ 1(2) and OJ 12 (which relate to persons with policyholder credit accounts) to maintain a policyholder credit account penalties and interest is deﬁned in section HD 15(9) (Asset stripping of companies) for the purposes of that section pension is deﬁned in section CF 1(2) (Beneﬁts, pensions, com- pensation, and government grants) for the purposes of that sec- tion period of restriction is deﬁned in section DC 15(2) to (4) (Some deﬁnitions) for the purposes of sections DC 13 to DC 15 (which relate to share purchase schemes) permit is deﬁned in section 2 of the Crown Minerals Act 1991 permit area means the area of land covered by a petroleum permit permit-speciﬁc asset is deﬁned in section DZ 5(6) (Farm- out arrangements for petroleum mining before 16 December 1991) for the purposes of that section permitted withdrawal means a withdrawal permitted under the KiwiSaver scheme rules as deﬁned in section 4 of the Kiwi- Saver Act
 2006 or under the complying fund rules 2912 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 person— (a) (b) (c) is deﬁned in section EH 3(2) (Persons to whom main income equalisation scheme applies) for the purposes of the main income equalisation scheme: is deﬁned in section EH 37(2) (Persons to whom adverse event income equalisation scheme applies) for the pur- poses of the adverse event income equalisation scheme: is deﬁned in section EH 63(2) (Persons to whom thin- ning operations income equalisation scheme applies) for the purposes of the thinning operations income equalisation scheme personal injury by accident [Repealed] [Repealed] personal property, in sections CB 4 (Personal property ac- quired for purpose of disposal) and CB 5 (Business of dealing in personal property) does not include land personal property lease asset— (a) means any personal property subject to a lease; and does not include any livestock or bloodstock (b) personal property lease payment means a payment made by a lessee to a lessor, in money or money’s worth, in relation to, or in consideration for, a personal property lease asset personal service rehabilitation payment, means an amount paid for the person’s beneﬁt— (a) for a person, under section 81(3), 372, or 374 of the Accident Com- pensation Act 2001; and by the Accident Compensation Corporation or an em- ployer that is an accredited employer as deﬁned in sec- tion 181 of that Act; and in providing to a person— (i) (b) (c) (ii) a key aspect of rehabilitation referred to in sec- tion 81(1)(b), (c), (e), or (g) (relating to attendant care, child care, home help, and training for in- dependence) of that Act: a key aspect of rehabilitation referred to in sec- tion 81(1)(h) (relating to transport for independ- ence) of that Act to the extent provided by para- graph (a)(i) of the deﬁnition of transport for in- dependence in schedule 1, clause 12 of that Act: 2913 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012
 (iii) similar rehabilitation referred to in an earlier Act corresponding to that Act petroleum is deﬁned in section 2 of the Crown Minerals Act 1991 petroleum development expenditure— (a) means expenditure incurred by a petroleum miner that— (i) (ii) directly concerns a permit area; and is for acquiring, constructing, or planning petrol- eum mining assets; and (b) does not include— (i) (ii) (iii) residual expenditure; or petroleum exploration expenditure; or other expenditure allowed as a deduction under any provision of this Act, other than a provision in subpart DT (Petroleum mining expenditure) or DZ (Terminating provisions), and allocated to the income year in which the expenditure is incurred petroleum exploration expenditure— (a) means— (i) (ii) (iii) exploratory well expenditure; and prospecting expenditure; and expenditure to acquire an existing privilege, a prospecting permit for petroleum, or an explor- ation permit for petroleum; and (b) does not include— (i) (ii) residual expenditure; or expenditure that is required by section DT 6 (Expenditure on petroleum mining assets) to be treated as petroleum development expenditure petroleum miner is deﬁned in section CT 6 (Meaning of pet- roleum miner) petroleum mining asset is deﬁned in section CT 7 (Meaning of petroleum mining asset) petroleum mining company means a company to which sec- tions IZ 2 and IZ 3 (which relate to companies engaged in ex- ploring for, searching for, or mining petroleum) apply 2914 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 petroleum mining development is deﬁned in section EJ 20 (Meaning of petroleum mining development) for the purposes of sections EJ 12 and EJ 12B (which relate to petroleum de- velopment expenditure) petroleum mining development expenditure is deﬁned in section DZ 3(4) (Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991) for the purposes of that section petroleum mining operations is deﬁned in section CT 6B (Meaning
 of petroleum mining operations) petroleum mining permit is deﬁned in section 2 of the Crown Minerals Act 1991 petroleum permit means— a prospecting permit: (a) an exploration permit: (b) (c) a mining permit to the extent to which it remains current petroleum-related depreciable property is deﬁned in section EE 67 (Other deﬁnitions) PFSI forestry business means the forestry activities carried on by a person who, as landowner, is subject to obligations under a forest sink covenant referred to in section 67X of the Forests Act 1949 in relation to the land speciﬁed in the covenant PFSI forestry income, for a person, means the income from a PFSI forestry business— (a) relating to a forest sink covenant entered into by the person; and derived by the person from— (i) (b) receiving an emissions unit under the covenant; or entering into a transaction in relation to an emis- sions unit received under the covenant (ii) physical cost of production is deﬁned in section DZ 11(3) (Film reimbursement scheme on or before 30 June 2001) for the purposes of that section PIE means a portfolio investment entity PIE rules means— (a) the following provisions: 2915 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) (iii) (iv) (v) (vb) (vi) (vii) section BC 7(4) (Income tax liability of person with schedular income): section CB 26 (Disposal of certain shares by port- folio investment entities): section CP 1 (Attributed income of investors in multi-rate PIEs): sections CX 55 to CX 57 (which relate to ex- cluded income of investors in PIEs): sections DB 53 to DB 54B (which relate to losses of certain investors in PIEs): section EX 20B(3)(o) amount): subpart HM (Portfolio investment entities): section IA 7(10) (Restrictions relating to ring- fenced tax losses): (Attributable CFC (viii) IC 3(2B) to (2D) (Common ownership: group of (ix) (x) companies): subpart LS (Tax credits for multi-rate PIEs and investors): section OB 9B (ICA attributed PIE income with imputation credit):
 (b) sections 28B, 28D, 31B, 31C, 33(1C), 38(1B), 57B, and 61(1C) of the Tax Administration Act 1994 plant does not include an item that is structural in relation to a building plant variety rights means proprietary rights granted for a plant variety under the Plant Variety Rights Act 1987 or similar rights given similar protection under the laws of a country or territory other than New Zealand planting is deﬁned in section DO 8 (Meaning of planting and plot) for the purposes of sections DO 5 to DO 8 (which relate to horticultural plants) pleasure craft is deﬁned in section CW 21(2) (Amounts de- rived by visiting crew of pleasure craft) for the purposes of that section plot is deﬁned in section DO 8 (Meaning of planting and plot) for the purposes of sections DO 5 to DO 8 (which relate to horticultural plants) 2916 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 policy liabilities is deﬁned in section EY 29(8) (Shareholder base other proﬁt: proﬁt participation policies that are new busi- ness) for the purposes of section EY 29 policyholder base means, for a life insurer, the base for pol- icyholder base income and allowable deductions and to which income of a particular source or nature, and tax credits re- ceived are apportioned under section EY 4 (Apportionment of income of particular source or nature, and of tax credits) policyholder base allowable deductions means policyholder base allowable deductions described in section EY 2(2) (Pol- icyholder base) policyholder base income means policyholder base income described in section EY 2(1) (Policyholder base) policyholder unvested liabilities means beneﬁts that are al- located to policyholders of proﬁt participation policies but are not vested in a speciﬁc policyholder pool is deﬁned in section EE 67 (Other deﬁnitions) pool method is deﬁned in section EE 67 (Other deﬁnitions) poolable property is deﬁned in section EE 66 (Meaning of poolable property) portable New Zealand superannuation means New Zealand
 superannuation paid or payable overseas under— (a) section 26(2)(a) of the New Zealand Superannuation and Retirement Income Act 2001, or under section 26(2)(b) where the superannuitant is residing in a coun- try to which section 26(1)(a) of that Act applies; or section 31 of the New Zealand Superannuation and Re- tirement Income Act 2001; or section 19 of the Social Welfare (Transitional Provi- sions) Act 1990 (b) (c) portable veteran’s pension means a veteran’s pension paid or payable overseas under— (a) section 74J(2)(a) of the War Pensions Act 1954, or under section 74J(2)(b) where the pensioner is residing in a country to which section 74J(1)(a) of that Act applies; or section 74O of the War Pensions Act 1954; or (b) 2917 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) section 19 of the Social Welfare (Transitional Provi- sions) Act 1990 portfolio investment means an investment of an entity in an item of property of a type to which section HM 11 (Investment types) refers portfolio investment entity means— (a) (b) (c) (d) portfolio investment-linked life fund means a separate iden- tiﬁable fund forming part of a life insurer, that— (a) a multi-rate PIE: a listed PIE: a beneﬁt fund PIE: a life fund PIE holds investments subject to life insurance policies under which beneﬁts are directly linked to the value of the investments held in the fund; and has become a portfolio investment entity under section HL 13 (Becoming portfolio investment entity); and has not ceased to be a portfolio investment entity under section HL 15 (Ceasing to be portfolio investment en- tity) (b) (c) possession includes a use that is in fact or effect substantially exclusive post-1989 forest land means post-1989 forest land as deﬁned in section 4(1) of the Climate Change Response Act 2002 post-1989 forest land emissions unit, for a person, means an emissions unit transferred under section 64 of the Climate Change Response Act 2002 for growing trees on post-1989 forest land—
 (a) to the person and held continuously by the person from the transfer: to another person (the recipient), who at the time of the transfer is a party to a forestry rights agreement as deﬁned in the Forestry Rights Registration Act 1983 with the person, and— (i) transferred by the recipient to the person, under a provision of the forestry rights agreement relat- ing to the allocation of income or emissions units between the recipient and the person; and (b) 2918 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (ii) held continuously by the person from the transfer by the recipient post-treaty tax rate means the rate of tax, after taking into account the overriding effect of a relevant double tax agree- ment, if there is one, as provided by section BH 1 (Double tax agreements) pre-1983 investments is deﬁned in section HR 3(8) (Deﬁni- tions for section HR 2: group investment funds) for the pur- poses of section HR 2 (Group investment funds) pre-1990 forest land means pre-1990 forest land as deﬁned in section 4(1) of the Climate Change Response Act 2002 pre-1990 forest land emissions unit, for a person, means an emissions unit transferred under Part 4, subpart 2 of the Cli- mate Change Response Act 2002 in relation to pre-1990 forest land— (a) to the person and held continuously by the person from the transfer: to another person (the appointee), as a person appointed under section 73 of that Act, and— (i) transferred by the appointee to the person, as a future owner of the pre-1990 forest land at the time of the transfer to the appointee; and held continuously by the person from the transfer by the appointee: (ii) (b) (c) to another person (the recipient), who at the time of the transfer is a party to a forestry rights agreement as deﬁned in the Forestry Rights Registration Act 1983 with the person, and— (i) transferred by the recipient to the person, under a provision of the forestry rights agreement relat- ing to the allocation of income or emissions
 units between the recipient and the person; and held continuously by the person from the transfer by the recipient (ii) pre-1991 budget security means a ﬁxed-rate share, or a debenture to which section FA 2 (Recharacterisation of certain debentures) applies, that— (a) was itself issued by the company before 8.00 pm New Zealand Standard Time on 30 July 1991 (the speciﬁed 2919 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) time), or was issued under a binding contract entered into before the speciﬁed time no term of which is altered at any time after the speciﬁed time; and is not a share or debenture any term of which is altered at any time after the speciﬁed time, whether under a pro- vision for roll-over or extension or under an option held at the speciﬁed time by the shareholder or debenture holder or the company or both or by any other person or otherwise, except when the term is altered under a binding contract entered into before the speciﬁed time no term of which is altered at any time after the speci- ﬁed time pre-imputation income year means an income year that started before the 1987–88 income year premium,— (a) (b) (c) for life insurance,— (i) (ii) (iii) means any consideration, however described, payable under a life insurance policy to a life insurer; and does not include interest on an unpaid premium: does not include consideration received by a life insurer for the transfer of life insurance business: in sections CR 3, HD 16, HD 17, and YD 8 (which relate to non-resident general insurers), for general insurance or guarantee against risk, means an amount payable in relation to the contract of insurance or guarantee, as applicable, entered into by the insured person: in section EZ 8 (Premium paid on land leased before 1 April 1993) and for the purposes of section DZ 9 (Pre- mium paid on land leased before 1 April 1993),— (i) includes a payment in the nature of a ﬁne, a pay- ment for goodwill attaching to the land, and a payment in
 consideration of the grant, transfer, or renewal of the lease; and does not include rent (ii) premium payback amount means an amount of life risk com- ponent premium refunded in accordance with the terms and conditions of the relevant life insurance policy or the discre- tion of the life insurer 2920 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 prescribed by regulations under this Act; or prescribed by the Commissioner prepaid expenditure means expenditure to which section EA 3 (Prepayments) applies prescribed means— (a) (b) prescribed amount is deﬁned in section DU 9(4) (Application of sections to resident mining operators) prescribed interest is deﬁned in section RD 34(3) (Employ- ment-related loans: value using prescribed interest rates) for the purposes of that section prescribed investor rate, for a multi-rate PIE and an investor, means an applicable tax rate set out in schedule 6, table 1 (Prescribed rates: PIE investments and retirement scheme con- tributions), modiﬁed as necessary by section HM 56(2) (Pre- scribed investor rates: schedular rates) or HM 57B (Prescribed investor rates for new residents) prescribed period is deﬁned in section CU 29 (Other deﬁni- tions) prescribed proportion is deﬁned in section CU 29 (Other def- initions) prescribed rate of interest means the rate of interest declared by regulations made under section RA 21(3) (Regulations) to be the rate applying to employment-related loans present value (gross) means–– (a) a present value calculated using the risk-free rate of re- turn as the discount rate, gross of tax; but face value, if the whole discount period is less than a year (b) present value (net) means–– (a) a present value calculated using the risk-free rate of re- turn as the discount rate, net of tax; but face value, if the whole discount period is less than a year is deﬁned in section RD 40(3) (Goods) for the purposes of that section: is deﬁned in section RD 41(4) (Services) for the pur- poses of that
 section: 2921 (b) (b) price— (a) Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) in sections RD 42 and RD 43 (which relate to goods pro- vided with staff discount), for a registered person who may claim input tax for goods provided to an employee, means the GST-inclusive price (b) (c) primary producer co-operative company is deﬁned in section CZ 7(4) (Primary producer co-operative companies: 1987–88 income year) for the purposes of that section principal caregiver is deﬁned in section MC 10 (Principal caregiver) for the purposes of the child tax credit, WFF tax credit, in-work tax credit, and parental tax credit private domestic worker means a person employed by any other person if— (a) the employer is the occupier, or 1 of the occupiers, of a dwellinghouse or other premises used exclusively for residential purposes; and the employment is for the performance of work in or about the dwellinghouse or premises or the garden or grounds belonging to the dwellinghouse or premises; and the employment is not for a business carried on by the employer or an occupation or calling of the employer; and the employment is not regular full-time employment (d) private limitation is deﬁned in section DA 2(2) (General limi- tations) private or domestic agreement for the sale and purchase of property is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules private use is deﬁned in section CX 36 (Meaning of private use) pro rata cancellation, for shares of the same class in a com- pany, means the cancellation of— all the shares in the class; or (a) part only of the shares in the class if the cancellation (b) does not alter any person’s voting interest, or market value interest, if a market value circumstance exists at the time in relation to the company, in the company, determined as if no other class of shares existed; or 2922 Reprinted as at 29 May 2012 (c) Income Tax Act 2007 Part Y s YA 1 part only of the shares in the class
 if the cancellation re- sults from an offer from the company to all shareholders in the class and the resulting cancellation would have met paragraph (b) if each shareholder who received the offer accepted it in full produce transactions,— (a) in section CD 33 (Payments corresponding to notional distributions of producer boards and co-operative com- panies), subpart HE (Mutual associations), and sections OB 73 and OB 74 (which relate to imputation credit accounts of statutory producer boards), and in the def- inition of member (paragraph (a)), means transactions that— (i) are between a statutory producer board and its members; and involve the acceptance by the board from its members, in terms of the board’s primary statu- tory functions, of produce that is trading stock or goods that are trading stock: (ii) (b) (c) in sections CD 33, OB 78, and OB 79 (which relate to imputation credit accounts of co-operative companies), and in the deﬁnition of shareholder (paragraph (c)), means transactions that— (i) are between a co-operative company and its shareholders; and involve the acceptance of produce that is trading stock or goods that are trading stock; and are purchases or other acquisitions of the produce or goods by the company from its shareholders, if a principal activity of the company involves the acceptance of such produce or goods from its shareholders: (ii) (iii) in sections CD 33, OB 78, OB 79, and OB 82, and in the deﬁnition of shareholder (paragraph (c)), also means transactions that— (i) are between a co-operative company and its shareholders; and involve the supply of produce that is trading stock or goods that are trading stock; and (ii) 2923 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) are sales or other disposals of the produce or goods by the company to its shareholders, if a principal activity of the company involves the supply of such produce or goods to its sharehold- ers producer board has the same meaning as statutory
 producer board proﬁt is deﬁned in section DB 28(6) (Amount from land af- fected by change and not already in income) for the purposes of that section proﬁt participation policy–– (a) means a class of life insurance policy having–– (i) (ii) (iii) a segregated or identiﬁable asset base; and policyholders who are entitled to a share of proﬁts that is distributed to, or vested in, the pol- icyholders from the asset base, and the policies provide for the entitlement; and a ﬁxed formula, expressed in terms of a propor- tion of a policyholder’s share of proﬁts from the asset base, that calculates a transfer to the beneﬁt of the life insurer’s shareholders from the proﬁts of the asset base, and that ﬁxed formula is con- sistently applied: (b) includes a class of life insurance policy that substan- tially meets the requirements of paragraph (a) and that has a guarantee by the life insurer that capital invested will be returned or that a minimum return on capital will be paid, if— (i) the life insurer has irrevocably chosen that the class be treated as a proﬁt participation policy; and the Commissioner receives a notice of the elec- tion before the start of the ﬁrst income year to which it relates: (ii) (c) does not include a life insurance policy that covers life risk and is–– (i) (ii) life reinsurance: a multiple life policy, as deﬁned in section EY 30(14) (Transitional adjustments: life risk): 2924 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (iii) a workplace group policy, as deﬁned in section EY 30(15) proﬁt-related debenture is deﬁned in section FA 2(4) (Recharacterisation of certain debentures) proﬁt-sharing arrangement means an arrangement under which— (a) a person (person A) makes speciﬁed livestock avail- able, without specifying a fee for doing so, to another person (person B) who carries on a business in which the livestock are used; and any return or compensation that person A receives for making the livestock available depends on the proﬁts of
 the business; and person A participates in the proﬁts and losses of the business; and if a partnership between person A and person B arises, person A is bound by the requirements of the Partnership Act 1908 for third parties (b) (c) (d) projected transactions shareholding is deﬁned in section CD 34B (Distributions to members of co-operative compan- ies) property,— (a) in subpart EE (Depreciation), includes consents granted in or after the 1996–97 tax year under the Resource Management Act 1991: in subpart FB (Transfers of relationship property), is deﬁned in section FB 1(4) (What this subpart does): in subpart FC (Distribution, transmission, and gifts of property), is deﬁned in section FC 1(2) (What this sub- part does): in the ﬁnancial arrangements rules, and in the deﬁni- tions of agreement for the sale and purchase, for- ward contract, right, short-term agreement for sale and purchase, short-term option, and speciﬁed op- tion does not include a ﬁnancial arrangement or foreign exchange: in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) (ab) (ac) (b) (c) 2925 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 proportional-stapling company means a company if— (a) each share in the company that is not a stapled debt se- curity and not a ﬁxed-rate share (a participating share) is stapled to a stapled debt security; and for each participating share in the company, the amount payable for the issue of its stapled debt security is the same proportion of the available subscribed capital cal- culated under the slice rule of the participating share as it is for each other participating share (b) (b) prospecting expenditure— (a) means expenditure to identify land likely to contain ex- ploitable petroleum deposits or occurrences; and includes prospecting for petroleum by electrical, geo- chemical, gravimetric, magnetic, radioactive, seismic, or other geological methods; and does not include residual expenditure (c) prospecting
 permit is deﬁned in section 2 of the Crown Min- erals Act 1991 protected family tax credit, for a person, means an amount of family scheme income derived in the way set out in section MD 14 (Person receiving protected family tax credit) protective right is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section provisional rate is deﬁned in section EE 67 (Other deﬁnitions) provisional tax means an amount payable as provisional tax under the provisional tax rules provisional tax rules means the provisions listed in section RC 2 (Provisional tax rules and their application) PSR period is deﬁned in section EY 23 (Reserving amounts for life insurers: non-participation policies) public authority— (a) means every department or instrument of the Executive (b) (c) Government of New Zealand; and includes the Public Trust and the Maori Trustee; and includes the Christmas Island Phosphate Commission, incorporated in Australia by the Christmas Island Agreement Act 1949 of the Parliament of Australia and 2926 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 continued under the Christmas Island Agreement Act 1958; and is further deﬁned in section CW 38(6) (Public author- ities) for the purposes of that section (d) public entertainer is deﬁned in section CW 19(3) (Amounts derived during short-term visits) for the purposes of that sec- tion public ofﬁcial is deﬁned in section DB 45(4) (Bribes paid to public ofﬁcials) for the purposes of that section public unit trust means— (a) a unit trust that offers securities to the public under the Securities Act 1978 and that has 100 or more unit hold- ers, treating all associated persons as 1 person, who are— (i) (ii) (iii) unit trust managers who hold units in the ordinary course of their activities in relation to the unit trust; or persons with an interest of 25% or less in the unit trust, treating all associated persons as 1 person; or persons with an interest of 25%
 or more in the unit trust, treating all associated persons as 1 per- son, if their interest is 25% or more because of unusual or temporary circumstances, such as the recent establishment or forthcoming termination of the unit trust, and if the unit trust would meet the requirements of any of paragraphs (b), (c), (d), and (e); or (b) a unit trust whose unit holders are any 1 or more of the following: (i) a public unit trust as described in paragraph (a) or this paragraph: a group investment fund: a life insurance company: a superannuation fund: a unit trust manager, trustee, or person nominated by the manager or the trustee who holds units in the ordinary course of management activities in relation to the unit trust: (ii) (iii) (iv) (v) 2927 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (vi) a person with an interest of 25% or less in the unit trust, treating all associated persons as 1 per- son, if the unit trust offers securities to the public under the Securities Act 1978: (vii) a person with an interest of 25% or more in the unit trust, treating all associated persons as 1 per- son, if their interest is 25% or more because of unusual or temporary circumstances, such as the recent establishment or forthcoming termination of the unit trust, and if the unit trust would meet the requirements of any of paragraphs (a), (c), (d), and (e), and if the unit trust offers securities to the public under the Securities Act 1978; or a unit trust that has less than 100 unit holders if it could reasonably be regarded as a widely-held investment ve- hicle for direct investment by members of the public de- spite its number of unit holders or investors; or a unit trust that has less than 100 unit holders if it has less than 100 unit holders or investors because of un- usual or temporary circumstances, such as its recent es- tablishment or forthcoming termination, and if it would otherwise meet the requirements of any of paragraphs (a), (b), (c), and (e); or a unit
 trust that has less than 100 unit holders if it could reasonably be regarded as a vehicle mainly for invest- ment by widely-held vehicles for direct investment that are 1 or more of the following: (i) (ii) (iii) (iv) unit trusts; or group investment funds; or life insurance companies; or superannuation funds (c) (d) (e) QCP transitional process is deﬁned in section HZ 4B(7) (Qualifying companies: transition into partnership) QCST transitional process is deﬁned in section HZ 4D(4) (Qualifying companies: transition into sole traderships) qualifying asset is deﬁned in section EZ 28 (Meaning of quali- fying asset) qualifying capital value is deﬁned in section EZ 26 (Meaning of qualifying capital value) 2928 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 qualifying company is deﬁned in section HA 2 (Meaning of qualifying company) qualifying company election tax means the amount de- scribed in section HA 40 (Liability for qualifying company election tax) qualifying debenture means— (a) a debenture issued by a forestry company for unpaid purchase money for land bought by the forestry com- pany from the Crown or the Maori owners or a holding company of the forestry company; or a debenture issued by a forestry company for capital- ised interest derived from a debenture described in para- graph (a); or a debenture issued by a forestry company for money lent to the forestry company by a holding company for any of the following purposes: (i) ﬁnancing expenditure by the forestry company on planting or maintaining trees; or (ii) meeting administrative overheads, rates, rent, in- surance premiums, or other expenses of the same kind; or paying interest on money borrowed for the pur- poses of the forestry business and employed as capital in the business; or (iii) a debenture issued by a forestry company for capital- ised interest derived from a debenture described in para- graph (c); or a debenture issued by a forestry company for capital- ised interest derived from
 a debenture described in para- graph (b) or (d); or a debenture issued by a Maori investment company to a shareholder of the company or a trustee for a share- holder (b) (c) (d) (e) (f) qualifying foreign equity investor is deﬁned in section CW 12(4) (Proceeds of share disposal by qualifying foreign equity investor) for the purposes of that section qualifying improvement is deﬁned in section EZ 27 (Mean- ing of qualifying improvement) 2929 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 qualifying resident foreign trustee is deﬁned in section 3(1) of the Tax Administration Act 1994 qualifying share premium is deﬁned in section CD 43(28) (Available subscribed capital (ASC) amount) for the purposes of that section quarantined amount means the amount described in section LK 1(3) (Tax credits relating to attributed CFC income) for the purposes of Part L (Tax credits and other credits) quarter means a period of 3 consecutive calendar months that ends with the last day of March, June, September, or December ratio instalment date means an instalment date of a person who uses a GST ratio for a tax year, and is an instalment date for a payment in relation to which no amount of use of money interest or penalties apply other than a late payment penalty or a shortfall penalty recognised exchange, at any time,— (a) means a recognised exchange market in New Zealand or anywhere else in the world that at the time has the features described in paragraphs (c) to (e); and includes a recognised exchange market that at the time is approved for the purposes of this deﬁnition by the Commissioner, having had regard to the features de- scribed in paragraphs (c) to (e); and for the purposes of paragraphs (a) and (b), the ﬁrst fea- ture is that the exchange market brings together buyers and sellers of shares or options over shares; and for the purposes of paragraphs (a) and (b), the second feature is that the exchange market involves the listing of prices, whether by electronic
 media or other means, at which persons are willing to buy or sell shares or options; and for the purposes of paragraphs (a) and (b), the third fea- ture is that the exchange market provides a medium for the determination of arm’s length prices likely to prove fair and reasonable, having regard to— (i) the number of participants in the market or hav- ing access to the market; and the frequency of trading in the market; and (d) (b) (c) (e) (ii) 2930 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (iii) (iv) (v) (vi) the nature of trading in the market, including how prices are determined and transactions are effected; and the potential or demonstrated capacity of a person or persons signiﬁcantly to inﬂuence the market; and any signiﬁcant barriers to entry to the market; and any discrimination on the basis of quantity bought and sold unless based on the risks in- volved, the transaction costs, or economies of scale recognised seasonal employment scheme means the recog- nised seasonal employer policy published by the Department of Labour under section 13A of the Immigration Act 1987 redemption payment means the amount by which a payment made on the redemption of a commercial bill by the person who issued it is more than the money lent to the person, issue, in this deﬁnition, having the meaning given to it by section 2 of the Bills of Exchange Act 1908 reduced deﬁcit debit is deﬁned in section OC 38 (Meaning of reduced deﬁcit debit) for the purposes of section OC 23 (FDPA breach of FDP ratio by PCA company) refundable tax credit means— (a) a tax credit under subpart LB (Tax credits for payments, deductions, and family payments): a tax credit under subpart LF (Tax credits for foreign dividend payment (FDP) credits), excluding section LF 8 (Credits for persons who are non-resident or who receive exempt income): a tax credit under subpart LH (Tax credits for expend- iture on research and development): a tax credit under subpart LO (Tax credits for Maori
 authority credits): a tax credit under sections LS 2, LS 3(2), and LS 4(2) (which relate to multi-rate PIEs and certain of their in- vestors): a tax credit under section LS 1 (Tax credits for multi- rate PIEs) to the extent to which it arises under section (b) (bb) (c) (d) (e) 2931 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 HM 53 or HM 55 (which relate to the use of tax credits other than foreign tax credits) a cover note: a renewal of a reinsurance contract registered bank means a registered bank as deﬁned in section 2 of the Reserve Bank of New Zealand Act 1989 registered person is deﬁned in section 2 of the Goods and Services Tax Act 1985 registered security is deﬁned in section 86F of the Stamp and Cheque Duties Act 1971 regulatory value is deﬁned in section FE 20(2) (Financial value and regulatory value) for the purposes of section FE 19 (Banking group’s equity threshold) reinsurance contract includes— (a) (b) reinsurance grandparenting start day is deﬁned in section EZ 62 (Reinsurance transition: life ﬁnancial reinsurance may be life reinsurance) reinvestment proﬁt is deﬁned in section CU 29 (Other deﬁ- nitions) related activity is deﬁned in section IZ 1(12) (Use of speciﬁed activity net losses) for the purposes of that section related by employment is deﬁned in section EY 11(14) (Superannuation schemes providing life insurance) for the purposes of that section related company is deﬁned in section GC 5(5) (Leases for inadequate rent) for the purposes of that section related employer is deﬁned in section RD 51(6) (Calculation of all-inclusive pay) for the purposes of that section related person is deﬁned in section CZ 9B (Available capital distribution amount: 1988 to 2010) for the purposes of that section relationship agreement, for a person, means— (a) an agreement for the purpose of Part 6 of the Property (Relationships) Act 1976 that is made on or after 28 July 1983 by the person with another person: an order under section 25 of the
 Property (Relation- ships) Act 1976 that is made by a court on or after (b) 2932 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 28 July 1983 in relation to the person and another per- son relationship period is deﬁned in section MC 11(1) (Relation- ship periods and entitlement periods) for the purposes of sub- parts MA to MF and MZ (which relate to tax credits for fami- lies) relative,— (a) for the purposes of only this Act, other than in section HC 36 (Trusts and minor beneﬁciary rule), means a per- son connected with another person by— (i) being within the second degree of blood relation- ship to the other: being in a marriage, civil union, or de facto rela- tionship with the other: being in a marriage, civil union, or de facto rela- tionship with a person who is within the second degree of blood relationship to the other: being adopted as a child of the other or as a child of a person who is within the ﬁrst degree of rela- tionship to the other: being the trustee of a trust under which a relative has beneﬁted or is eligible to beneﬁt: (ii) (iii) (iv) (v) (b) (c) is deﬁned in section HC 36(5) for the purposes of only that section: for the purposes of the deﬁnition of relative in section 2 of the Securities Act 1978, means a person connected with another person by–– (i) being within the fourth degree of blood relation- ship to the other: being in a marriage, civil union, or de facto rela- tionship with the other: being in a marriage, civil union, or de facto re- lationship with a person who is within the fourth degree of blood relationship to the other: being adopted as a child of the other or as a child of a person who is within the third degree of re- lationship to the other: (ii) (iii) (iv) 2933 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (v) being the trustee of a trust under which a relative of the other person has beneﬁted or is eligible to beneﬁt relevant balance date is deﬁned in section GB 45 (Arrange- ments involving
 money not at risk) for the purposes of that section relevant period is deﬁned in section YC 13(3) (Corporate spin-outs) for the purposes of that section relinquishment,— (a) for a petroleum permit, means the abandonment, expiry, forfeiture, revocation, or surrender of the permit other- wise than for a replacement permit; and for an existing privilege applying to a mining licence under the Petroleum Act 1937, includes the expiry of the initial term without an extension of the initial term or an extension of a speciﬁed term (b) remaining deduction— (a) is deﬁned in section EJ 4(6) (Expenditure incurred in acquiring ﬁlm rights in feature ﬁlms) for the purposes of that section: is deﬁned in section EJ 5(4) (Expenditure incurred in acquiring ﬁlm rights in ﬁlms other than feature ﬁlms) for the purposes of that section: is deﬁned in section EJ 8(5) (Film production expend- iture for ﬁlms other than New Zealand ﬁlms) for the pur- poses of that section (b) (c) removal or restoration operations, for a petroleum miner, means removing petroleum mining assets of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset), or restoring the site of petroleum mining operations, because of the relinquishment of the petroleum permit relating to the assets or the operations rent is deﬁned in section GC 5(5) (Leases for inadequate rent) for the purposes of that section repairs, in sections CC 2 (Non-compliance with covenant for repair) and DB 21 (Amounts paid for non-compliance with covenant for repair), includes painting and general mainten- ance 2934 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 replaced area fraction is deﬁned in section DO 9 (Meaning of replaced area fraction and diminished value) for the pur- poses of sections DO 5 and DO 6 (which relate to horticultural plants) replacement forest land emissions unit means an emissions unit acquired by a person if— (a) the person has previously disposed of a post-1989 forest land
 emissions unit or forest sink emissions unit other than by— (i) surrender under the Climate Change Response Act 2002: transfer to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949; and the person has not since the disposal acquired another emissions unit that replaces the post-1989 forest land emissions unit or forest sink emissions unit (ii) (b) replacement payment, for a returning share transfer, means a payment to a person of an amount that is— (a) economically equivalent to a dividend or part of a divi- dend for an original share: increased by an imputation credit attached to the pay- ment (b) replacement permit— (a) means a petroleum permit obtained in whole or part ex- change for another petroleum permit over the same or part of the same area; and includes a sequential series of replacement permits to the extent to which each permit in the series replaces the previous permit in the series (b) replacement plant, in sections DO 6, DO 7, and DO 9 (which relate to horticultural plants) means a listed horticultural plant that replaces a listed horticultural plant, whether or not it is of the same type of listed horticultural plant reporting bank is deﬁned in section FE 4 (Some deﬁnitions) for the purposes of subpart FE (Interest apportionment on thin capitalisation) 2935 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 research is deﬁned in section DB 35 (Some deﬁnitions) for the purposes of that section and section DB 34 (Research or development) research and development activities is deﬁned in section LH 7(1) (Research and development activities and related terms) for the purposes of subpart LH (Tax credits for expend- iture on research and development) resident foreign trustee is deﬁned in section 3(1) of the Tax Administration Act 1994 resident group member is deﬁned in section IQ 2B(9) (Effect of attributed CFC net loss and some FIF net loss from before ﬁrst affected year) for the purposes of that section and section
 LK 5B (Credits from tax year before ﬁrst affected year) resident imputation subgroup has the meaning given in sec- tion FN 8(2) (Trans-Tasman imputation groups and resident imputation subgroups) resident in Australia, for a company, means being resident under section YD 2(1) (Residence of companies) if Australia were treated as being New Zealand for the purposes of that section resident in New Zealand and resident of New Zealand have the same meaning as New Zealand resident resident mining operator is deﬁned in section CU 27 (Mean- ing of resident mining operator) resident passive income— (a) is deﬁned in section RE 2(1) (Resident passive income); and unless the context otherwise requires, includes RWT re- quired to be withheld under the RWT rules (b) residential mortgage backed security means a security that is backed by New Zealand-originated ﬁrst mortgages on New Zealand residential property residential purposes is deﬁned in section CB 18(3) (Residen- tial exclusion from section CB 14) for the purposes of that sec- tion resident’s restricted amalgamation is deﬁned in section FO 3(1) (Resident’s restricted amalgamations) for the pur- poses of the amalgamation rules 2936 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) (b) residual expenditure means— (a) expenditure for which a person is allowed a deduction under section DB 33 (Scientiﬁc research): expenditure incurred for— (i) an application fee payable to the Crown for a petroleum permit; or insurance premiums, royalties paid under the Petroleum Act 1937 or the Crown Minerals Act 1991, land tax under the Land Tax Act 1976, or rates; or a lease of land or buildings; or a ﬁnancial arrangement to which the old ﬁnancial arrangements rules apply: (ii) (iii) (iv) interest (c) residual income tax, for a person and for a tax year, means the positive amount, if any, that remains after subtracting from the person’s income tax liability for the tax year, the following amounts (a) a trustee for the person as a
 beneﬁciary; or an agent for the person as a principal: the amount of any credit allowed against the income tax liability for tax paid by— (i) (ii) the amount of any credit allowed against the income tax liability under— (i) section LB 1 (Tax credits for PAYE income pay- ments): section LB 3 (Tax credits for resident withhold- ing tax): section LB 5 (Tax credits for non-resident with- holding tax): (ii) (iii) (iiib) section LB 6 (Tax credits for RSCT): (iiic) section LC 13 (Tax credits for independent earn- ers): section LE 1 (Tax credits for imputation credits): section LF 1 (Tax credits for FDP credits): section LH 2 (Tax credits relating to expenditure on research and development): section LJ 2 (Tax credits for foreign income tax): (iv) (v) (vb) (vi) 2937 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (vii) section LK 1 (Tax credits relating to attributed CFC income): (viii) section LK 6 (Use of tax credits by group com- (ix) panies): section LO 1 (Tax credits for Maori authority credits): the amount of any credit allowed against the income tax liability arising under subpart LP (Tax credits for supplementary dividends), other than through section LP 3(3) (Use of remaining credits): the amount of a debit balance used to pay income tax under section OE 7 or OP 101 (which relate to the payment of tax by BETA companies or consolidated groups): the amount of a credit used to pay income tax under section OJ 8 or OJ 18 (which relate to the policyholder base) (c) (d) (e) resource consent means a resource consent as deﬁned in sec- tion 2 of the Resource Management Act 1991 restitution is deﬁned in section DB 44(3) (Restitution of stolen property) for the purposes of that section retirement savings scheme for a person means an entity eli- gible under section RH 3 (Retirement savings schemes) retirement scheme contribution is deﬁned in section RH 2 (Retirement scheme contributions) retirement scheme contributor means an entity eligible under section RH 4
 (Retirement scheme contributors) retirement scheme prescribed rate, for a person and a retire- ment scheme contribution made for the person at a time in an income year, means a rate set out in schedule 6, table 2 (Pre- scribed rates: PIE investments and retirement scheme contri- butions) return, for a person’s income, has the same meaning as return of income return of income means a return of income required under section 33 of the Tax Administration Act 1994 returning share transfer means an arrangement— (a) under which— 2938 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (i) (ii) a share (the original share) listed on an ofﬁcial list of a recognised exchange is transferred from a share supplier to a share user; and it is conditionally or unconditionally agreed that the share user or an associated person pays a re- placement payment to the share supplier or an as- sociated person, if a dividend is payable on the original share; and it is conditionally or unconditionally agreed that the original share or an identical share may be transferred from the share user to the share sup- plier or an associated person; and that is not a warrant or instalment receipt (iii) (b) revenue account property, for a person, means property that— (a) (b) is trading stock of the person: if disposed of for valuable consideration, would pro- duce income for the person other than income under section EE 48 (Effect of disposal or event), FA 5 (As- sets acquired or disposed of after deductions of pay- ments under lease), or FA 9 (Treatment when lease ends: lessee acquiring asset): is an emissions unit of the person: is a non-Kyoto greenhouse gas unit (c) (d) right, in sections EW 32 (Consideration for agreement for sale and purchase of property or services, hire purchase agree- ment, speciﬁed option, or ﬁnance lease) and EW 34 (Consider- ation in foreign currency), and in the deﬁnitions of short-term agreement for sale and purchase and short-term option,— (a) means— (i) (ii) (iii)
 a right to possess the property; or a right to income derived from the property; or a right to control or inﬂuence the disposal of in- come derived from the property; or a right, directly or indirectly, to make a decision about the property; or a right, directly or indirectly, to inﬂuence a per- son making a decision about the property; or (iv) (v) 2939 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (vi) any other right of a substantially similar nature; and does not include the mere right to enforce an agreement for the sale and purchase of property or services or a speciﬁed option right in the speciﬁed property is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules right to take timber includes an easement or licence or right of taking proﬁts or produce from the land to the extent to which the easement, licence, or right relates to timber ring-fenced tax loss means an amount referred to in section IA 7 (Restrictions relating to ring-fenced tax losses) rolling average value is deﬁned in section EZ 4(5) (Valuation of livestock bailed or leased as at 2 September 1992) for the purposes of that section routine government action is deﬁned in section DB 45(4) (Bribes paid to public ofﬁcials) for the purposes of that section royalty is deﬁned in section CC 9(2) and (3) (Royalties) RSCT means retirement scheme contribution tax RSCT rules is deﬁned in section RH 1 (RSCT rules and their application) RWT means resident withholding tax and refers to an amount payable as income tax under the RWT rules RWT exemption certiﬁcate means a certiﬁcate described in section 32E of the Tax Administration Act 1994 RWT proxy is deﬁned in section 15N of the Tax Administra- tion Act 1994 RWT rules means the provisions listed in section RE 1(1) (RWT rules and their application) RWT substitution payment means an RWT substitution pay- ment described in section RE 2(7) (Resident passive income) RWT withholding certiﬁcate means a form
 provided under section 25 of the Tax Administration Act 1994 salary or wages— (a) is deﬁned in section RD 5 (Salary or wages): 2940 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) is further deﬁned in schedule 28, clause 7 (Require- ments for complying fund rules) for the purposes of that schedule savings component means,–– (a) (b) for a premium paid under a life insurance policy, the ac- tuarially determined amount of the premium that is like the policyholder making an investment and is accounted for as increasing policyholder liabilities: for a claim payable under a life insurance policy, the actuarially determined amount of the claim that is like the policyholder withdrawing an investment and is ac- counted for as reducing policyholder liabilities savings product policy means a life insurance policy, other than an annuity, that may or may not have a life risk component and that has or will have a surrender value which–– (a) (b) is greater than zero; and does not arise wholly from the payback of a some or all of a policyholder’s premiums relating to life risk schedular income means income of any of the following types: (a) (b) schedular policyholder base income: income derived from a mining venture by a non-resident mining operator: [Repealed] category A income derived by a trustee of a group in- vestment fund: income derived by a multi-rate PIE: income derived by a portfolio tax rate entity: non-resident passive income of the kind referred to in section RF 2(3) (Non-resident passive income): income to which section YD 6 (Apportionment of in- come from sea transport) applies: income to which section YD 7 (Apportionment of ﬁlm rental income) applies: income to which section YD 8 (Apportionment of pre- miums derived by non-resident general insurers) applies schedular income tax liability means the amount determined under section BC 7 (Income tax liability of person with schedular income) (db) (e) (f) (c) (d) (g) (h) (i) 2941 Part Y s YA 1 Income
 Tax Act 2007 Reprinted as at 29 May 2012 schedular payment is deﬁned in section RD 8 (Schedular payments) schedular policyholder base income means schedular pol- icyholder base income described in section EY 2(3) (Policy- holder base) schedular taxable income, for a tax year and a person who has schedular income of a particular kind for the tax year, means the amount of taxable income that the person has in calculating the schedular income tax liability for the kind for the tax year scientiﬁc or technological uncertainty is deﬁned in section LH 7(3) (Research and development activities and related terms) for the purposes of subpart LH (Tax credits for expend- iture on research and development) seal and abandonment means the seal and abandonment of an exploratory well when a petroleum miner ﬁles a statutory declaration with the Commissioner stating that the miner has no intention of utilising the well in petroleum mining oper- ations or of applying for a petroleum mining permit in relation to the area in which the well is located second payment period means the period starting on the 16th day of a month and ending with the last day of the month section 200 is deﬁned in section CZ 7(4) (Primary producer co-operative companies: 1987–88 income year) for the pur- poses of that section secured amounts— (a) is deﬁned in section HB 11(12) (Limitation on deduc- tions by persons with interests in look-through compan- ies) for the purposes of that section: is deﬁned in section HG 11(12) (Limitation on deduc- tions by partners in limited partnerships) for the pur- poses of that section (b) secured arrangement,— (a) in the ﬁnancial arrangements rules, and in the deﬁni- tions of security arrangement and security payment, means an arrangement whose non-performance is se- cured against by a ﬁnancial arrangement: is deﬁned in section EZ 48 (Deﬁnitions) for the pur- poses of the old ﬁnancial arrangements rules (b) 2942 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1
 (b) (b) security arrangement,— (a) except in the old ﬁnancial arrangements rules, means a ﬁnancial arrangement that secures a party against an- other person failing to perform the person’s obligations under a secured arrangement: in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) security payment,— (a) in the ﬁnancial arrangements rules, means money re- ceived by a party to a security arrangement to the extent to which— (i) the money is received for a loss incurred because of non-performance of the secured arrangement; and the money is income of the party: (ii) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) segment of foreign-sourced income is deﬁned in section LJ 4 (Meaning of segment of foreign-sourced income) for the pur- poses of Part L (Tax credits and other credits) selected period is deﬁned in section MF 1(3) (Application for payment of tax credit by instalment) for the purposes of that section self-assessed adverse event, for a person and a farming, agri- cultural, or ﬁshing business of the person, means an event that— (a) is 1 of the following: (i) (ii) drought, ﬁre, ﬂood, or some other natural event: disease or sickness of livestock; and (b) materially affects the business; and (c) is described, together with the effect on the business, by the person in a statutory declaration given to the Com- missioner separated person, in subparts MA to MF and MZ (which re- late to tax credits for families), and in the deﬁnitions of spouse and civil union partner, means a person who is separated and living apart from their spouse or civil union partner, whether under an agreement for separation, or under a court order, or otherwise 2943 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 services,— (a) (b) in sections CD 5 (What is a transfer of value?)
and EA 3 (Prepayments), means anything that is not goods, money, or a chose in action: in sections CX 1 (Goods and services tax) and DB 2 (Goods and services tax), means anything that is not goods or money, as each of those terms is deﬁned in section 2 of the Goods and Services Tax Act 1985 settlement, in section FE 2 (When this subpart applies) and subpart HC (Trusts), in the trust rules, and in the deﬁnitions of complying trust, disposition of property, foreign trust, and general power of appointment,— (a) means— (i) an act or failure to act on the part of a person that has the effect of making the person a settlor; or a transaction or series of transactions that a per- son enters into and that has the effect of making the person a settlor; and (ii) (b) includes a settlement that a person is treated as making because the person is treated as being a settlor of the settlement settlement of relationship property is deﬁned in section FB 1(3) (What this subpart does) for the purposes of subpart FB (Transfers of relationship property) settlor,— (a) is deﬁned in section HC 27 (Who is a settlor?)
for the purposes of section CW 59 (New Zealand companies operating in Niue), section MB 7 (Family scheme in- come of settlor of trust), subpart YB (Associated per- sons and nominees), the consolidation rules, the trust rules, and the deﬁnition of settlement: in sections HC 36 and HC 37 (which relate to minor beneﬁciaries), has the meaning given in paragraph (a), with the following qualiﬁcations: (i) in section HC 27(2) if the transfer of value is the provision of ﬁnancial assistance by way of a loan for less than market value, it means loans existing on or after 1 April 2002 for which the interest rate on the amount borrowed is at any time during (b) 2944 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (ii) (iii) a tax year less than the interest rate set out in the Income Tax (Fringe Beneﬁt Tax, Interest on Loans) Regulations on 31 March of the previous tax year; and in section HC 27(2) the transfer of value does not include the provision of ﬁnancial assistance by way of a guarantee that was not called on or the provision of security that was not called on; and in section HC 27(2) the transfer of value does not include services that are incidental to the op- eration of the trust, such as bookkeeping or ac- counting services or those provided in being a trustee: (c) has the meaning given in paragraph (a) modiﬁed by sec- tion YB 10 (Who is a settlor?)
for the purposes of sec- tions YB 7 to YB 9 (which relate to associated persons) share— (a) (b) (bb) (c) (d) includes any interest in the capital of a company: includes a debenture to which section FA 2 (Recharac- terisation of certain debentures) applies: includes a stapled debt security to which section FA 2B(2) (Stapled debt securities) applies: includes a unit in a unit trust: includes an investor’s interest in a group investment fund if— (i) the fund is not a designated group investment fund; and the interest does not result from an investment from a designated source; and the investor’s interest does not result from an in- vestment made in the fund on or before 22 June 1983, including an amount treated as invested at that date as pre-1983 investments under section HR 3(8) (Deﬁnitions for section HR 2: group in- vestment funds): (ii) (iii) (e) does not include a withdrawable share in a building so- ciety, except in the deﬁnitions of investment society dividend and withdrawable share: 2945 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (f) (g) is further deﬁned in section CE 6 (Meaning of share: when share acquired) for the purposes of sections CE 2 to CE 4and CE 7 (which relate to share purchase agree- ments): is further deﬁned in section DC 15 (Some deﬁnitions) for the purposes of sections DC 12 to DC 15 (which relate to share purchase schemes) (c) (d) (e) share-lending arrangement means an arrangement, entered into on or after 1 July 2006, that is a returning share transfer, and— (a) (b) the agreed term of the arrangement is 1 year or less; and the terms and conditions of the arrangement, including the share-lending collateral, are ordinary commercial terms and conditions consistent with those that would apply between parties negotiating at arm’s length; and the amount of tax calculated under section RE 17 (Replacement payments under share-lending arrange- ments) for a replacement payment, if any, is paid; and the share user disposes of the original share or an iden- tical share to the share
 supplier during the agreed term of the arrangement, or within a further period allowed by the Commissioner; and the share user— (i) agrees to issue, and issues, a credit transfer no- tice in relation to a dividend paid for the original share: establishes and maintains an imputation credit account, if a dividend is payable for the original share during the agreed term of the arrangement share-lending collateral means an amount, or an adjustment to the amount, that— (a) is related to the market value of an original share under a share-lending arrangement, and the amount is paid to a person,— (i) (ii) by a share user or an associated person to secure the transfer of the original share to the share user: by a share supplier or an associated person for the re-transfer of the original share or an identical share to them; and (ii) 2946 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 is not a replacement payment (b) share-lending right means, for a share supplier under a share- lending arrangement, a conditional or unconditional right to acquire the original share or an identical share under the share- lending arrangement share purchase agreement is deﬁned in sections CE 7 (Mean- ing of share purchase agreement) and CZ 1 (Share purchase agreement income before 19 July 1968) for the purposes of sections CE 1 to CE 4 (which relate to employment income) and HC 27(3B) (Who is a settlor?)
share purchase scheme is deﬁned in sections CE 7 (Meaning of share purchase agreement) and CZ 1 (Share purchase agree- ment income before 19 July 1968) for the purposes of sections CE 1 to CE 4 (which relate to employment income) and sec- tion EX 38 (Exemption for employee share purchase scheme of grey list company) share reorganisation, in the FIF rules and for a person and an attributing interest in a FIF, means an action of the FIF that causes an increase or reduction, other than for consideration, of the attributing interests held by persons, including the per- son, who hold attributing interests in the FIF immediately be- fore the action share supplier means a person, described as a share supplier, in the deﬁnition of returning share transfer, from whom a share user acquires an original share under a returning share transfer share user means a person, described as a share user in the deﬁnition of returning share transfer, who acquires an ori- ginal share under a returning share transfer shareholder— (a) includes— (i) (ii) a holder of a share; and a member of a company, whether the company’s capital is divided into shares or not: (b) does not include a holder of a withdrawable share in a building society, except in the deﬁnitions of investment society dividend and withdrawable share: 2947 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) (b) in subparts HA (Qualifying companies (QC) and loss-attributing qualifying companies (LAQC)) and OE (Branch equivalent tax accounts (BETA)) and OJ (Policyholder credit accounts (PCA)), in the FDP rules and the imputation rules, and in the deﬁnition of share- holder dividend statement, includes a sharemilker (as deﬁned in section 2 of the Sharemilking Agreements Act 1937), to the extent to which the sharemilker de- rives payment for produce transactions directly from a co-operative dairy or milk company shareholder agreement, for a company,–– (a) includes an arrangement to which the shareholders of the company are parties, in their capacity as sharehold-
 ers; but does not include an arrangement that is–– the company’s constitution: (i) the terms of a debt security: (ii) the terms of the company’s shares (iii) shareholder base, for a life insurer, means the base for share- holder income and allowable deductions and to which income of a particular source or nature, and tax credits received are apportioned under section EY 4 (Apportionment of income of particular source or nature, and of tax credits) shareholder base allowable deductions means shareholder base allowable deductions described in section EY 3(2) (Shareholder base) shareholder base income means shareholder base income de- scribed in section EY 3(1) (Shareholder base) shareholder decision-making right means a right, carried by a share issued by a company or an option over a share issued by a company, to vote or participate in any decision-making concerning— (a) a dividend or other distribution to be paid or made by the company, whether on a liquidation of the company or otherwise, excluding decision-making undertaken by directors acting only in their capacity as directors; or the constitution of the company; or a variation in the capital of the company; or the appointment of a director of the company (b) (c) (d) 2948 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 shareholder dividend statement means a statement required by section 29 of the Tax Administration Act 1994 to be given by a company to a shareholder to whom is paid a dividend referred to in that section shareholder-employee,— (a) in sections EA 4 (Deferred payment of employment in- come) and EI 9 (Matching rule for employment income of shareholder-employee), means a person who receives or is entitled to receive salary, wages, or other income to which section RD 3(2) to (4) (PAYE income payments) applies: in the FBT rules and in section 177A of the Tax Admin- istration Act 1994, means a person who is, in relation to a close company,— (i) a shareholder in and an employee of the com-
 pany; and (ii) a person to whom section RD 3(2) to (4) applies: does not include an owner of a look-through company or a person who has a look-through interest for a look- through company (b) (c) shareholder FDP ratio is deﬁned in section OC 39 (Meaning of shareholder FDP ratio) for the purposes of sections OC 23 and OC 36 (which relate to FDP credits and debits) shares of the same class means any 2 or more shares of a company— (a) that carry the same shareholder decision-making rights; and that carry the same rights, in terms of priority, amount payable per share, and otherwise, to be paid proﬁts dis- tributed by the company and distributions of assets of the company on a cancellation of its shares; and for which either the owner, or the amount paid for the issue, of each share is the same if— (i) the company gives notice to the Commissioner in a form approved by the Commissioner, that the company chooses to treat the shares as a separate class; and (b) (c) 2949 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) the company can at all times from the time of issue of each share identify and distinguish the share from any other shares in the company shearer means a person who— (a) undertakes the shearing of sheep, other than in the carry- ing on of a business by the person; and is not a person permanently employed on the premises where the shearing shed is situated (b) (b) shearing shed hand means a person who— (a) is employed in or about the shearing shed, other than in the carrying on of a business by the person; and is not— (i) (ii) (iii) a shearer: a wool classer: a person permanently employed on the premises where the shearing shed is situated short term agreement for the sale and purchase of property is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules short term trade credit is deﬁned in section EZ 48 (Deﬁni- tions) for the purposes of the old ﬁnancial arrangements rules short-term agreement for sale
 and purchase means an agreement for the sale and purchase of property or services of 1 of the following classes: (a) an agreement under which settlement must take place or the services must be performed on or before the 93rd day after the date on which the agreement is entered into: if the date on which the agreement is entered into cannot be established, an agreement under which settlement must take place or the services must be performed on or before the 93rd day after the earlier of— (i) the date on which the buyer ﬁrst makes a payment to the seller; and the date on which the ﬁrst right in the property is transferred or the services are performed: if the agreement is continuous and the seller renders periodic invoices for the property or services, an agree- ment under which settlement must take place or the ser- (ii) (b) (c) 2950 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 vices must be performed on or before the 93rd day after the date on which each invoice is rendered short-term bailment is deﬁned in section EC 27 (Some deﬁ- nitions) for the purposes of subpart EC (Valuation of livestock) short-term charge facility is deﬁned in section CX 25(3) (Beneﬁts provided by charitable organisations) for the pur- poses of the FBT rules short-term option,— (a) in the ﬁnancial arrangements rules, means a speciﬁed option of 1 of the following classes: (i) (ii) an option under which settlement must take place or the services must be performed on or before the 93rd day after the date on which the option is entered into: if the date on which the option is entered into can- not be established, an option under which settle- ment must take place or the services must be per- formed on or before the 93rd day after the earlier of the date on which the buyer ﬁrst makes a pay- ment to the seller and the date on which the ﬁrst right in the property is transferred or the services are performed: (b) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48
 (Deﬁnitions) shortfall penalty is deﬁned in section 3(1) of the Tax Admin- istration Act 1994 sickness, accident, or death beneﬁt fund means a sickness, accident, or death beneﬁt fund that is— (a) established for the beneﬁt of— (i) (ii) (iii) employees; or the members of an incorporated society; or the surviving spouses and dependants of those employees or members; and approved by the Commissioner (b) signiﬁcant capital activity, in section DO 1(1)(g) (Enhance- ments to land, except trees) and schedule 20 (Expenditure on farming, horticultural, aquacultural, and forestry improve- 2951 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 ments) and in relation to a farming or agricultural business on land in New Zealand,— (a) means an activity that enables a change in the nature or character of a farming activity from that undertaken on the land immediately before the change; and excludes an activity that enables a change in the inten- sity of a farming practice employed in a farming activity on the land (b) slice rule means the rule set out in section CD 23(3) (Order- ing rule and slice rule) for calculating the amount of available subscribed capital per share small-business person is deﬁned in section RC 40 (Some def- initions) for the purposes of subpart RC (Provisional tax) small partnership means a partnership that is not a limited partnership and has 5 or less partners, none of whom are com- panies or partnerships social assistance payment is deﬁned in section MA 8 (Some deﬁnitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families) social assistance suspensory loan is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules sound commercial reason is deﬁned in section EW 26(7) (Change of spreading method) for the purposes of that section.
sound recording is deﬁned in the Copyright Act 1994 source in New Zealand, for income, means a source described in section YD 4 (Classes of income treated as having New Zealand source) and section YZ 1 (Source rule for interest) special account means a special home ownership account special corporate entity means— a Crown Research Institute: (a) a group investment fund: (b) a Life Insurance Fund: (c) an entity that has not issued shares and is engaged (d) mainly in the business of providing life insurance or other insurance to the public: a local authority: a public authority: (e) (f) 2952 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (g) (h) (i) (j) a State enterprise: a statutory producer board other than a body that derives only exempt income: any other statutory body that does not issue shares, if— the statutory body is established by an Act of the (i) Parliament of New Zealand or by a statute of the legislature, whether federal or state or provincial, of any territory outside New Zealand; and the Commissioner, having regard to the terms of the statute by which the body is established, is satisﬁed that it would be appropriate to treat the body as a special corporate entity for the purposes of those provisions of this Act whose application is dependent on the measurement of voting and market value interests: (ii) any body incorporated under the Incorporated Societies Act 1908, for an income year in which the body on no day in the income year has shares on issue to the members of the body special excluded depreciable property is deﬁned in section EE 67 (Other deﬁnitions) special home ownership account means a special home own- ership account operated by a person under Part 2 of the Home Ownership Savings Act 1974 special rate is deﬁned in section EE 67 (Other deﬁnitions) speciﬁed activity is deﬁned in section IZ 1(12) (Use of speci- ﬁed activity net losses) for the purposes of that section speciﬁed activity net income is deﬁned in section IZ 1(12) (Use of speciﬁed activity net losses) for the
 purposes of that section speciﬁed activity net loss is deﬁned in section IZ 1(12) (Use of speciﬁed activity net losses) for the purposes of that section speciﬁed base cost for 1983 income year property means the greater of— (a) (b) the cost price or acquisition value of the property; and the market value of the property on the last day of the 1982–83 income year 2953 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 speciﬁed insurance premium is deﬁned in section CX 16(3) (Contributions to life or health insurance) speciﬁed lease means a lease of a personal property lease asset if— (a) the lease is entered into in the period starting on 6 Au- gust 1982 and ending on 19 May 1999 and the lease has a guaranteed residual value, or has a term of the lease that is more than 36 consecutive months, or has a term of the lease that is the economic life of the asset because the Commissioner considers that the asset has an eco- nomic life of less than 36 months, and— (i) (ii) (iii) (iv) the lessee becomes the owner of the asset at the end of the term of the lease: the lessee has the option to repurchase the asset at the end of the term of the lease at a price that the Commissioner considers will be signiﬁcantly lower than the market value of the asset at the end of the term of the lease: the total of all personal property lease payments and the guaranteed residual value is more than or equal to, or to a small extent less than, the cost price of the asset: the lessor and the lessee agree that the lessee is li- able for the payment of all, or nearly all, expend- iture incurred for the costs of repair and mainten- ance of the asset and any other incidental costs arising during the term of the lease for the use of the asset: (b) (c) the lease is entered into in the period starting on 6 Au- gust 1982 and ending on 19 May 1999 and the lessee acquires ownership of the asset by any means, whether from the lessor or another person: the lease is entered into in the period
 starting on 28 Oc- tober 1983 and ending on 19 May 1999 and— (i) a person other than the lessee acquires the asset; and the lessee and the person who acquires the asset are associated (ii) 2954 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 speciﬁed livestock— (a) means an animal of a type speciﬁed in schedule 17, col- (b) umn 1 (Types and classes of livestock); and does not include an animal that is high-priced livestock, except as provided in section EC 37 (Bailment) speciﬁed living allowance means— (a) (b) (c) (d) an income-tested beneﬁt; or a veteran’s pension; or New Zealand superannuation; or a basic grant or an independent circumstances grant, made under regulations made under section 193 of the Education Act 1964, section 303 of the Education Act 1989, or an enactment substituted for those sections; or compensation described in section RD 5(1)(b)(iii) (Salary or wages) if the compensation relates to a day forming part of a continuous period of eligibility for such compensation and the day falls after the earlier of— (i) (e) the day having the same date as the ﬁrst day of the continuous period of eligibility for compensation and occurring in the third calendar month after that ﬁrst day; and the last day of the third calendar month after the ﬁrst day of the continuous period of eligibility for compensation (ii) speciﬁed mineral is deﬁned in section CU 28 (Meaning of speciﬁed mineral) speciﬁed option,— (a) in the ﬁnancial arrangements rules,— (i) means an option to acquire or dispose of property or services; and includes an agreement for the sale and purchase of property or services entered into as a result of the exercise of the option: (ii) (b) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) speciﬁed period,— (a) is deﬁned in section EH 36 (Other deﬁnitions) for the purposes of the main income equalisation scheme: 2955 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) is deﬁned in section
 EH 62 (Other deﬁnitions) for the purposes of the adverse event income equalisation scheme: is deﬁned in section EH 79 (Other deﬁnitions) for the purposes of the thinning operations income equalisation scheme spouse, in subparts MA to MF and MZ (which relate to tax credits for families), and in the deﬁnitions of entitlement period, full-time earner, and separated person, does not include a separated person spreading method means a method listed in section EW 14(2) (What spreading methods do) stallion means a stallion that is bloodstock standard accounting year has the meaning given in section YE 1(4) (References to balance dates and years) standard balance date has the meaning given in section YE 1(4) (References to balance dates and years) standard-cost household service means a service that is a standard-cost household service under a determination made by the Commissioner under section 91AA of the Tax Admin- istration Act 1994 standard dividend means a dividend derived from a company by a shareholder in the form of— (a) money; or (b) (c) (d) standard income year is deﬁned in section YE 1(4) (Refer- ences to balance dates and years) standard value, for non-speciﬁed livestock, means the value set under section EC 29 (Determining standard values) standing timber includes trees that would be standing timber if they were mature trees stapled, for a debt security and a share, is deﬁned in section FA 2B(5) (Stapled debt securities) stapled debt security means a debt security that is stapled to a share, if the share is not a ﬁxed-rate share the release of an obligation to repay an amount lent; or a distribution of property of the company; or a taxable bonus issue 2956 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 state enterprise means a person speciﬁed in schedule 36 (State enterprises) statutory producer board means— (a) a body speciﬁed in schedule 37 (Statutory producer boards): a marketing authority as deﬁned in the Primary Products Marketing Act 1953
 that is established by regulations made under that Act: a primary producer board or marketing board estab- lished by an Act (b) (c) statutory trustee company is deﬁned in section 2 of the Trustee Companies Act 1967 straight-line method, for depreciation, is deﬁned in section EE 67 (Other deﬁnitions) straight-line rate is deﬁned in section EE 67 (Other deﬁni- tions) subsidised transport means the provision of transport or an entitlement to transport to an employee by the employer, or by a company (the group company) in the same group of com- panies as the employer, in a quarter, or an income year if sec- tion RD 60 (Close company option) applies, if— (a) the employer or group company carries on a business consisting of, or including, transporting the public for hire or reward; and the employer or group company provides the transport or the entitlement to the employee in the course of trans- porting the public; and the transport or entitlement is not transport in a motor vehicle; and the amount, if any, the employee pays is less than the highest amount the employer or group company charges the public, in the quarter or income year in which the provision to the employee occurs, for transport that is equivalent in terms of class, extent, and occasion to the transport or entitlement the employer or group company provides to the employee (b) (c) (d) 2957 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (f) (c) (d) (e) subsidy claim form means a form that a listed PAYE inter- mediary must provide to the Commissioner in an electronic format prescribed by the Commissioner showing,— (a) (b) the tax ﬁle number of the listed PAYE intermediary; and the tax ﬁle number and name of each employer in rela- tion to which a subsidy is claimed; and the tax ﬁle number and name of each employee of each employer in relation to whom a subsidy is claimed under sections RP 4 (Payment of subsidies to certain PAYE intermediaries) and 15M of the Tax Administration Act 1994; and
 the period to which the form relates; and the number of PAYE income payments made by the listed PAYE intermediary to each employee in the period to which the form relates; and the amount of subsidy that the listed PAYE intermediary claims for the period to which the form relates substantial business assets is deﬁned in section GB 28(6) (In- terpretation of terms used in section GB 27) for the purposes of section GB 27 (Attribution rule for income from personal services) substituting debenture is deﬁned in section FA 2(5) (Rechar- acterisation of certain debentures) superannuation category 1 scheme means a scheme or fund that was at the relevant time a superannuation category 1 scheme under the Income Tax Act 1976 superannuation category 2 scheme means a scheme or fund that was at the relevant time a category 2 scheme under the Income Tax Act 1976 superannuation category 3 scheme means a scheme or fund that was at the relevant time a superannuation category 3 scheme under the Income Tax Act 1976 superannuation contribution— (a) means a disposition of property to or for the beneﬁt of a superannuation scheme in consideration for which fully adequate consideration in money or money’ worth does not pass from the scheme to a person; and 2958 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) does not include a beneﬁt that may pass from the scheme to a person under the terms of the scheme superannuation fund— (a) means a superannuation scheme registered under the Superannuation Schemes Act 1989 or a KiwiSaver scheme that is registered under the KiwiSaver Act 2006; and for a superannuation fund that is a trust, means the trustees of the fund (b) superannuation policy is deﬁned in section DZ 2(3) (Life in- surers acquiring property before 1 April 1988) for the purposes of that section and section EZ 1 (Life insurers acquiring prop- erty before 1 April 1988) superannuation savings scheme means all the entitlements and tax credits arising under subpart MK (Tax
 credits for Kiwi- Saver schemes and complying superannuation funds) superannuation scheme— (a) means— (i) (ii) (iii) (iv) (v) a trust or unit trust established by its trust deed mainly for the purposes of providing retirement beneﬁts to beneﬁciaries who are natural persons or paying beneﬁts to superannuation funds; or [Repealed] a company that is not a unit trust, is not resident in New Zealand, and is established mainly for the purpose of providing retirement beneﬁts to members or relatives of members who are natural persons; or an arrangement constituted under an Act of the Parliament of New Zealand, other than the Social Security Act 1964, mainly for the purpose of pro- viding retirement beneﬁts to natural persons; or an arrangement constituted under the legislation of a country, territory, state, or local authority outside New Zealand mainly for the purpose of providing retirement beneﬁts to natural persons; and (b) for a superannuation scheme that is a trust, means the trustees of the scheme 2959 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 supplement, for a provision in Part D (Deductions) means to allow a person a deduction without requiring them to satisfy the general permission supplementary dividend, for a company and for a person deriving a dividend (the ﬁrst dividend) from the company, means a dividend that— (a) is paid by the company in the same income year as the ﬁrst dividend; and is paid in relation to the ﬁrst dividend; and is derived by the person; and is equal in amount to the tax credit calculated, for the ﬁrst dividend, under section LP 2(2) (Tax credits for supplementary dividends) (b) (c) (d) (c) (e) (d) supplementary dividend holding company in relation to a company (the subsidiary), means a company— that is resident in New Zealand; and (a) that has notiﬁed the subsidiary within the previous 7 (b) years that it is a supplementary dividend company, and has not revoked the notice; and that has a purpose, in maintaining the
 notice, of directly or indirectly enabling the payment of a supplementary dividend to a non-resident; and in which 1 or more voting interests are held by non- residents; and that derives dividends that are not excluded income or exempt income other than income under sections CW 9 and CW 10 (which relate to income from equity) supply is deﬁned in section GC 14 (Deﬁnitions for sections GC 6 to GC 13) for the purposes of sections GC 6, GC 9 and GC 10 (which relate to transfer pricing arrangements) supporting asset base is deﬁned in section EY 17 (Policy- holder base income: proﬁt participation policies) surrender, for an emissions unit, means surrender as deﬁned in section 4(1) of the Climate Change Response Act 2002 surrender value means the amount paid (the surrender amount) when a life insurance policy is cancelled before it reaches the maturity or expiry date contracted for under the policy, excluding an amount that is the repayment of unex- 2960 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 pired premiums.
There is no netting off against the surrender amount of unpaid premiums, outstanding loans, or interest balances (the debt obligations) owed by an insured unless the policy is terminated by the insurer and the debt obligations are greater than the surrender amount systematic, investigative, and experimental activities is de- ﬁned in section LH 7(2) (Research and development activities and related terms) for the purposes of subpart LH (Tax credits for expenditure on research and development) tax means income tax, but in the provisions in which the term “income tax” has an extended or limited meaning, “tax” has a corresponding meaning tax account with the Commissioner, for a person, means an account dealing with the person’s transactions with the Com- missioner in relation to income tax tax advantage, in sections GB 35 and GB 36 (which relate to imputation arrangements to obtain a tax advantage), GB 42 and GB 43 (which relate to Maori authority credit arrange- ments to obtain a tax advantage) and sections OB 61, OC 28, OD 21, and OK 20 (which relate to memorandum accounts), means— (a) the allowance, wholly or partly, of a tax credit under section LE 1 (Tax credits for imputation credits): the allowance, wholly or partly, of a tax credit under section LF 1 (Tax credits for FDP credits): the obtaining of a refund of FDP under section LF 8 (Credits for persons who are non-resident or who re- ceive exempt income): the allowance, wholly or partly, of a tax credit under section LO 1 (Tax credits for Maori authority credits): the arising of a credit to an imputation credit account under sections OB 4 to OB 29 (which relate to credits arising to imputation credit accounts): the arising of a credit to an FDP account under sections OC 6 to OC 12 (which relate to credits arising to FDP accounts): the arising of a credit to a Maori authority credit account under sections OK 2 to OK 9 (which relate to credits arising to Maori authority credit accounts) (b) (c) (d) (e) (f) (g) 2961 Part Y s YA 1 Income Tax Act 2007 Reprinted as
 at 29 May 2012 tax agent means a person— (a) who prepares the annual returns required to be ﬁled for 10 or more persons; and (b) who— (i) (ii) carries on a professional public practice; or carries on any business in which annual returns required to be ﬁled are prepared; or is the Maori Trustee (iii) tax avoidance includes— (a) (b) (c) directly or indirectly altering the incidence of any in- come tax: directly or indirectly relieving a person from liability to pay income tax or from a potential or prospective liability to future income tax: directly or indirectly avoiding, postponing, or reducing any liability to income tax or any potential or prospect- ive liability to future income tax tax avoidance arrangement means an arrangement, whether entered into by the person affected by the arrangement or by another person, that directly or indirectly— (a) (b) has tax avoidance as its purpose or effect; or has tax avoidance as 1 of its purposes or effects, whether or not any other purpose or effect is referable to ordinary business or family dealings, if the tax avoidance purpose or effect is not merely incidental tax-base property is deﬁned in section FC 1(2) (What this subpart does) for the purposes of subpart FC (Distribution, transmission, and gifts of property) tax charity is deﬁned in section CW 41(5) for the purposes of that section and sections CW 42 and CW 43 tax code, for an employee, means the employee’s tax code under section 24B of the Tax Administration Act 1994 tax credit— (a) (b) is deﬁned in section LA 10 (Meaning of tax credit): is deﬁned in section GA 1(7) (Commissioner’s power to adjust) for the purposes of that section 2962 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 tax credit advantage— (a) is deﬁned in section GB 36(5) (Reconstruction of im- putation arrangements to obtain tax advantage) for the purposes of that section: is deﬁned in section GB 43(5) (Reconstruction of Maori authority credit arrangements to obtain tax advantage)
 for the purposes of that section (b) tax ﬁle number means an identiﬁcation number that the Com- missioner has allocated to a person— (a) (b) generally for the purposes of this Act; or speciﬁcally for the purpose of the issue to the person of an RWT exemption certiﬁcate under section RE 27 (RWT exemption certiﬁcates) tax loss means an amount described in section IA 2(1) (Tax losses) and includes unused tax loss components arising in the current tax year or in an earlier tax year tax loss component is deﬁned in section IA 2(7) (Tax losses) tax pooling account is deﬁned in section RP 17B (Tax pooling accounts and their use) tax position means, for the purposes of sections HZ 4B and HZ 4D (which relate to the transition of a qualifying company into a partnership or sole tradership), a status, right, obliga- tion, liability, asset, or other thing authorised or arising under, required or imposed by, or necessary to comply with an Inland Revenue Act, and includes tax assets and accounting positions in relation to an Inland Revenue Act, and debts payable to the Commissioner tax withheld means an amount of tax— (a) withheld from a PAYE income payment under the PAYE rules to the extent to which it is a tax credit under section LB 1 (Tax credits for PAYE income payments): (b) withheld and paid to the Commissioner under the RWT and NRWT rules to the extent to which it is a tax credit under section LB 3 or LB 5 (which relate to tax credits for passive income): paid under regulations made under section 225 of the Tax Administration Act 1994 (c) 2963 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 tax year— (a) means a period starting on 1 April and ending on (b) 31 March: is deﬁned in section IW 1(6) (Shortfall penalties) for the purposes of that section taxable activity,— (a) in the provisional tax rules, the RWT rules, and the NRWT rules, is deﬁned in section 6 of the Goods and Services Tax Act 1985, except that section 6(3)(d) does not apply: is deﬁned in section
 DB 3(3) (Determining tax liabil- ities) for the purposes of that section taxable bonus issue means— (a) (b) a bonus issue in lieu: a bonus issue that a company chooses to treat as a divi- dend under section CD 8 (Elections to make bonus issue into dividend): in the case of a bonus issue made before the enactment of this Act, a bonus issue that the company chose to treat as a dividend under a provision of an earlier Act corresponding to section CD 8: a bonus issue that is a dividend under section CD 10 (Bonus issue by foreign unit trust instead of money or property) (b) (c) (d) taxable distribution, for a non-complying trust or a foreign trust, is deﬁned in section HC 15 (Taxable distributions from non-complying and foreign trusts) taxable income means taxable income for a tax year calcu- lated under section BC 5 (Taxable income) taxable Maori authority distribution is deﬁned in section HF 7 (Taxable Maori authority distributions) taxable period has the meaning given in section 2(1) of the Goods and Services Tax Act 1985 taxable supply has the meaning given in section 2(1) of the Goods and Services Tax Act 1985 taxation law, in sections EZ 52 (References to new rules in- clude old rules), ZA 3 (Transitional provisions), ZA 4 (Saving 2964 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 of binding rulings), and ZA 5 (Saving of accrual determin- ations), means— (a) a provision that is a taxation law under section 91B of the Tax Administration Act 1994: a provision of the Income Tax Act 1994 or Income Tax Act 2004 (b) taxed CFC connection, for a CFC and a country or territory (the host country), means a relationship meeting the follow- ing requirements: (a) the CFC is resident in the host country under section YD 3 (Country of residence of foreign countries); and there is no other country or territory for which the CFC is— (i) (ii) (iii) a resident under the domestic law of the country or territory: liable to income tax because of the CFC’s domi- cile,
 residence, place of incorporation, or centre of management: treated as a resident under an agreement with the host country that would be a double tax agreement if it were an agreement between New Zealand and the host country; and the CFC has no presence outside the host country that is— (i) (ii) a ﬁxed establishment: a permanent establishment under an agreement, between another country or territory and the host country, that would be a double tax agreement if it were between New Zealand and the host coun- try; and the CFC is liable in the host country to tax on its in- come because of the CFC’s domicile, residence, place of incorporation, or centre of management, or there is another foreign company (the parent company) that— wholly owns the CFC under the laws of New (i) Zealand and the host country; and has a relationship with the host country meeting the requirements of paragraphs (a) to (c); and (ii) 2965 (b) (c) (d) Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (iii) because of the parent company’s domicile, resi- dence, place of incorporation, or centre of man- agement, is liable in the host country to tax on the CFC’s income in the same period that the CFC would be liable on its income if it were a com- pany liable for tax (b) (c) (d) taxed FIF connection, for a FIF and a country or territory (the host country), means a relationship meeting the following re- quirements: (a) the FIF is resident in the host country under section YD 3 (Country of residence of foreign companies); and there is no other country or territory for which the FIF is— (i) (ii) (iii) a resident under the domestic law of the country or territory: liable to income tax because of the FIF’s domi- cile, residence, place of incorporation, or centre of management: treated as a resident under an agreement with the host country that would be a double tax agreement if it were an agreement between New Zealand and the host country; and the FIF has no presence outside the host country
 that is— (i) (ii) a ﬁxed establishment: a permanent establishment under an agreement, between another country or territory and the host country, that would be a double tax agreement if it were between New Zealand and the host coun- try; and the FIF is liable in the host country to tax on its income because of the FIF’s domicile, residence, place of in- corporation, or centre of management, or there is a for- eign company (the parent company) that— (i) wholly owns the FIF under the laws of New Zealand and the host country; and has a relationship with the host country meeting the requirements of paragraphs (a) to (c); and (ii) 2966 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (iii) because of the parent company’s domicile, resi- dence, place of incorporation, or centre of man- agement, is liable in the host country to tax on the FIF’s income in the same period that the FIF would be liable on its income if it were a com- pany liable for tax taxi is deﬁned in section 2(1) of the Land Transport Act 1998 taxicab[Repealed] [Repealed] taxpayer means a person who is, or may be, liable to perform or comply with an obligation imposed by this Act technology is deﬁned in section LH 7(5) (Research and devel- opment activities and related terms) for the purposes of subpart LH (Tax credits for expenditure on research and development) telecommunications service means a service, relating to in- formation of any kind including pictures, sound, and data, that is— (a) the transmission, emission, or reception of such infor- mation in analogue or digital code by a technical system using any equipment, including a cable or satellite and associated equipment, for the transmission through any medium of energy in any form, including electric cur- rent or electromagnetic radiation: the transfer or assignment of the right to transmit, emit, or receive such information by a system referred to in paragraph (a): the provision of access to a global network for the trans- mission,
 emission, or reception of such information (b) (c) temporary building means— (a) (b) [Repealed] a building that— (i) (ii) is erected at a construction site; and is to be demolished or removed on or before the completion of the construction; or (c) a building that— (i) was erected, and is used, to house speciﬁc plant or machinery; and 2967 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) will have to be demolished to remove or replace the plant or machinery ten percent capital reduction is deﬁned in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section term of the lease— (a) means the period of time from the date on which a lease (b) (c) (d) starts until it ends: if the term is indeﬁnite, means the period of time during which the lessee is unable, under the lease, to terminate the lease without incurring a penalty: if 2 or more consecutive leases are treated under para- graph (d)(v) of the deﬁnition of lease as 1 lease of a personal property lease asset, the term of the lease runs from the start of the ﬁrst term of the lease to the end of the last of the leases: is deﬁned in section EZ 8(5) (Premium paid on land leased before 1 April 1993) for the purposes of that sec- tion terminal tax means an amount calculated for a tax year under section BC 8 (Satisfaction of income tax liability) terminal tax date, for a tax year and a person, means the date determined under section RA 13 (Payment dates for terminal tax) for the payment of terminal tax for the tax year; and if the person does not have terminal tax for the tax year, section RA 13 applies as if the person did have terminal tax for the tax year terminating share means a share in a building society that is included in a group of shares, if the group is to terminate— (a) at the end of a period speciﬁed on the issue of the shares; or on the attainment of a result speciﬁed on the issue of the shares (b) thinning operations is deﬁned in section EH 79 (Other
 deﬁ- nitions) thinning operations deposit is deﬁned in section EH 79 (Other deﬁnitions) 2968 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) (iii) (iv) thinning operations income equalisation account is deﬁned in section EH 79 (Other deﬁnitions) thinning operations income equalisation scheme means the scheme referred to in section EH 1(2)(c) (Income equalisation schemes) thinning operations maximum deposit is deﬁned in section EH 78 (Meaning of thinning operations maximum deposit) timber— (a) is deﬁned in section DP 11(4) (Cost of timber) for the purposes of that section: includes standing timber in— section DP 11: (i) section EB 24 (Apportionment on disposal of (ii) business assets that include trading stock): section FB 6 (Timber or right to take timber): section GC 1 (Disposals of trading stock at below market value): the deﬁnition of dispose, paragraph (b): the deﬁnition of right to take timber: the deﬁnition of trading stock, paragraph (b)(iv) time bar means the provisions of sections 108 and 108B of the Tax Administration Act 1994 time of emigration for an emigrating company, is the time at which the emigrating company becomes a non-resident for the purposes of subpart FL (Emigration of resident companies) time of the sale, in sections DC 10 (Sale of business: trans- ferred employment income obligations) and EA 4 (Deferred payment of employment income), means the date on which the agreement for sale of the business or part of the business is settled by the exchange of the seller’s business or the part for the buyer’s consideration Tokelau International Trust Fund means the trust governed by the Deed concerning the Tokelau International Trust Fund dated 10 November 2004 and signed by Her Majesty the Queen in right of New Zealand and the Government of Tokelau (v) (vi) (vii) 2969 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 total group assets, for a New Zealand group, is deﬁned in section FE 16 (Total group assets) for the
 purposes of subpart FE (Interest apportionment on thin capitalisation) total group debt, for a New Zealand group, is deﬁned in sec- tion FE 15 (Total group debt) for the purposes of subpart FE (Interest apportionment on thin capitalisation) total tax credit, for a person, means the total amount of their tax credits under Part L (Tax credits and other credits) total taxable supplies is deﬁned in section RC 8(8) (GST ratio method) for the purposes of that section and sections RC 11, RC 16, RC 19, and RC 31 (which relate to the calculation and payment of provisional tax using the GST ratio method) trade credit is deﬁned in section EZ 48 (Deﬁnitions) for the purposes of the old ﬁnancial arrangements rules trading stock— (a) is deﬁned in section EB 2 (Meaning of trading stock) except for the provisions to which paragraphs (b) and (d) apply: in sections CG 6 (Receipts from insurance, indemnity, or compensation for trading stock), EB 24 (Apportion- ment on disposal of business assets that include trading stock), FB 13 (Trading stock), and GC 1 to GC 3 (which relate to the sale of trading stock for inadequate consid- eration),— (i) (ii) includes anything produced or manufactured: includes anything acquired for the purposes of manufacture or disposal: includes livestock: includes timber or a right to take timber: includes land whose disposal would produce in- come under any of sections CB 6 to CB 15 (which relate to income from land): includes any thing for which expenditure is in- curred and which would be trading stock if pos- session of it were taken: (iii) (iv) (v) (vi) (vii) does not include a ﬁnancial arrangement to which the ﬁnancial arrangements rules or the old ﬁnan- cial arrangements rules apply: (b) 2970 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (c) (d) for the purposes of section GC 1 (Disposals of trading stock at below market value), has an expanded meaning as set out in section GC 1(4): in the old ﬁnancial arrangements rules, is deﬁned in
 sec- tion EZ 48 (Deﬁnitions) trading transactions is deﬁned in section CD 34B (Distribu- tions to members of co-operative companies) transaction shares is deﬁned in section CD 34B (Distribu- tions to members of co-operative companies) transfer means, for the purposes of sections HZ 4B and HZ 4D (which relate to the transition of a qualifying company into a partnership or sole tradership), a sale, purchase, disposal, ac- quisition, cessation, assumption, discharge, assignment, vest- ing, divesting, gift, supply, or other transfer in relation to li- abilities and assets, and associated legal rights and obligations transfer amount is deﬁned in section FB 19(3) (Leased as- sets) for the purposes of that section transfer of value— (a) (b) means a transfer that occurs when— is deﬁned in section CD 5 (What is a transfer of value?
): (i) (ii) person A provides money or money’s worth to person B; and if person B provides any money or money’s worth to person A as part of the arrangement de- scribed in subparagraph (i), the market value of what person A provides is more than the market value of what person B provides; and (c) includes the release of an obligation that person B has to pay money to person A, either by agreement or oper- ation of law; and transfers value has a corresponding meaning (d) transfer pricing arrangement is deﬁned in section GC 6(2) (Purpose of rules and nature of arrangements) transferee— (a) is deﬁned in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section: 2971 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) in subpart FB (Transfers of relationship property), for property transferred under a relationship agreement, means the person to whom the property is transferred under the agreement transferor— (a) (b) (c) is deﬁned in section CZ 8(2) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section: is deﬁned in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section: in subpart FB (Transfers of relationship property), for property transferred under a relationship agreement, means the person from whom the property is trans- ferred under the agreement transitional period is deﬁned in section OZ 7 (Memorandum accounts in transitional period) for the purposes of sections OZ 8 to OZ 15 transitional resident is deﬁned in section HR 8(2) (Transi- tional residents) transitional year, in relation to provisional tax, means the period for which a person ﬁles a return under section 39 of the Tax Administration Act 1994 trans-Tasman imputation group means the group described in section FN 8(1) (Trans-Tasman imputation groups and resi- dent imputation subgroups) trust, in the deﬁnitions of superannuation scheme and unit trust, has the meaning
 given by the Trustee Act 1956 trust rules means— (a) (b) [Repealed] sections DV 1 to DV 7 (which relate to superannuation funds): section DV 9 (Trusts): section GB 22 (Arrangements involving trust beneﬁ- ciary income): subpart HC (Trusts): subpart HZ (Terminating provisions): (c) (d) (e) (f) 2972 Reprinted as at 29 May 2012 (g) Income Tax Act 2007 Part Y s YA 1 sections LE 4, LE 5, LF 2, LF 3, and LO 2 (which relate to tax credits for beneﬁciary minors): sections 59 and 93B of the Tax Administration Act 1994 (h) trustee,— (a) for a trust,— (i) means the trustee only in the capacity of trustee of the trust; and includes all trustees, for the time being, of the trust: (ii) (b) (c) (d) (e) (f) includes an executor and administrator: includes the Public Trust: includes the Maori Trustee: for a superannuation scheme that is a trust or that is treated by this Act as a trust, includes a person by whom the investments of the scheme, or a part of the scheme, are managed or controlled: is deﬁned in section DC 15 (Some deﬁnitions) for the purposes of sections DC 12 to DC 15 (which relate to share purchase schemes) trustee income is deﬁned in section HC 7 (Trustee income) turnover, in subpart EB (Valuation of trading stock (includ- ing dealer’s livestock)) and section HG 6 (Disposal of trading stock),— (a) means the total income that a business derives in an income year as a result of trading by that business; and does not include the value of closing stock (b) type, in subparts EC (Valuation of livestock) and FB (Trans- fers of relationship property), and in the deﬁnitions of class and herd livestock, means a category of livestock listed in schedule 17, column 1 (Types and classes of livestock) ultimate owner of a company means a person— (a) who has an ownership interest in the company calcu- lated under section FE 2 (When this subpart applies); and in whom no ownership interest is held by a person who holds an ownership interest in the company of 50% or more (b) 2973 Part Y s YA 1
 Income Tax Act 2007 Reprinted as at 29 May 2012 ultimate parent is the company described in section FE 34 (Identifying ultimate parent) for the purposes of subpart FE (Interest apportionment on thin capitalisation) unclassiﬁed beneﬁt is deﬁned in section CX 37 (Meaning of unclassiﬁed beneﬁt) unit holder, for a unit trust, means a person who holds a bene- ﬁcial interest in the property that is subject to the trust unit trust— (a) means a scheme or arrangement that is made for the purpose or has the effect of providing facilities for sub- scribers, purchasers, or contributors to participate, as beneﬁciaries under a trust, in income and capital gains arising from the property that is subject to the trust; and does not include— (i) (ii) (iii) a trust for the beneﬁt of debenture holders: the Common Fund of Public Trust: a group investment fund established by Public Trust: the Common Fund of the Maori Trustee: a group investment fund established under the Trustee Companies Act 1967: a friendly society registered under the Friendly Societies and Credit Unions Act 1982: (iv) (v) (vi) (b) (vii) a superannuation fund: (viii) an employee share purchase scheme: (ix) a fund that meets the requirements of section CW 45 (Funeral trusts): any other trust of any speciﬁed kind that is de- clared by the Governor-General, by Order in Council, not to be a unit trust for the purposes of section HD 13 (Unit trusts) (x) unit trust manager is deﬁned in section CD 16(4) (Certain dividends not increased by tax credits) for the purposes of that section unlisted trust is deﬁned in section CD 22(9) (Returns of cap- ital: off-market share cancellations) for the purposes of that section 2974 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 unlisted widely-held trust means a widely-held trust the units or interests in which are not quoted on the ofﬁcial list of a recognised exchange unwind is deﬁned in section HR 10 (What happens when ve- hicle stops being ﬁnancial institution
 special purpose vehicle?)
valuation premiums is deﬁned in section EY 29(7) (Share- holder base other proﬁt: proﬁt participation policies that are new business) for the purposes of that section variable principal debt instrument,— (a) in the ﬁnancial arrangements rules, means a ﬁnancial arrangement that contemplates that 1 party may, on de- mand or call,— (i) (ii) advance further amounts to the other party; or require the return of all amounts advanced to the other party, if the other party’s rights and obli- gations under the ﬁnancial arrangement are ex- pressed in a foreign currency: (b) in the old ﬁnancial arrangements rules, is deﬁned in sec- tion EZ 48 (Deﬁnitions) venture investment agreement is deﬁned in section CW 13(6) (Proceeds from share or option acquired under venture investment agreement) Venture Investment Fund means the company called New Zealand Venture Investment Fund Limited that is listed in schedules 4, 5, and 6 of the Public Finance Act 1989 veteran’s pension means a veteran’s pension, other than a portable veteran’s pension, paid or payable under— Part 6 of the War Pensions Act 1954; or (a) section 70(3)(b) of the Social Security Act 1964; or (b) Part 1 of the Social Welfare (Transitional Provisions) (c) Act 1990 volunteer is deﬁned in section CW 62B (Voluntary activities) for the purposes of that section voting interest— (a) means, for a person and a company and a time, the per- centage voting interest that the person is treated as hold- ing in the company at the time under sections YC 2 to 2975 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) YC 20 (which relate to the measurement of control and ownership interests): in subpart HA (Qualifying companies (QC) and loss- attributing qualifying companies (LAQC)), and in the deﬁnition of effective interest, is described in section HA 44 (Measuring effective interests): in section YC 13(4) and (5) (Corporate spin-outs), means, for a person and a company and a time, the percentage voting interest that the person is treated as holding in the company
 under section YC 2 (Voting interests), as modiﬁed by section YC 13(7) WFF tax credit means Working for Families tax credit and is deﬁned in section MA 8 (Some deﬁnitions for family scheme) wholly-owned group has the same meaning as wholly-owned group of companies wholly-owned group of companies is deﬁned in section IC 4(1) (Common ownership: wholly-owned groups of com- panies) widely-held company means, at any time, a company that, at the time,— (a) has no less than 25 shareholders (treating all associated shareholders as 1 person); and is not a closely-held company (b) widely-held GIF means a group investment fund that meets the requirements of— (a) section HM 14(1) (Minimum number of investors), treating the group investment fund as having 1 investor class consisting of all investors in the fund: 1 or more of paragraphs (a) and (c) to (e) of the deﬁn- ition of public unit trust, treating the group investment fund as a unit trust (b) widely-held superannuation fund means a superannuation fund that meets the requirements of— (a) section HM 14(1) (Minimum number of investors), treating the superannuation fund as having 1 investor class consisting of all investors in the fund: 2976 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 (b) 1 or more of paragraphs (a) and (c) to (e) of the deﬁn- ition of public unit trust, treating the superannuation fund as a unit trust (c) (b) widely-held trust means a unit trust or group investment fund to which 1 of the following applies: (a) it has at least 100 unit-holders or investors, treating all associated persons as 1 person; or paragraph (a) does not apply to it but it can still reason- ably be regarded as a widely-held investment vehicle for direct investment by the public; or paragraph (a) does not apply to it but only because of unusual or temporary circumstances, such as the fact that it was recently established or is to be terminated; or paragraph (a) does not apply to it but it can reasonably be regarded as a
 vehicle mainly for investment by unit trusts, group investment funds, or superannuation funds that are widely-held vehicles for direct investment wine is deﬁned in section CV 8 (Regulations: Australian wine producer rebate) for the purposes of that section withdrawable share— (a) means a share in a building society— (d) (i) (ii) that bears a rate of dividend set on the issue of the share and that is redeemable at the end of a ﬁxed term or at the option of the shareholder; or that has been issued under section 31A of the Building Societies Act 1965; or that is a terminating share; and (b) (iii) does not include a share in a building society that is ir- redeemable, or redeemable only at the society’s option, on which a dividend is declared and payable from the annual surplus revenue of the building society withdrawal certiﬁcate, for a special account that is a special home ownership account, means a withdrawal certiﬁcate as deﬁned in the Home Ownership Savings Act 1974 withdrawal income means withdrawal income as determined under section RZ 7 (Withdrawal income) withdrawal tax means withdrawal tax imposed by section RZ 8 (Payment and rate of withdrawal tax) 2977 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 withholding tax limitation is deﬁned in section DA 2(5) (General limitations) working day means any day of the week other than— (a) Saturday, Sunday, Good Friday, Easter Monday, Anzac Day, Labour Day, the Sovereign’s birthday, and Wai- tangi Day; and a day in the period starting on 25 December in a year and ending on 15 January (both dates inclusive) in the following year (b) (ii) working owner means a person who, in relation to a look- through company that is not wholly or mainly engaged in in- vesting money or in holding, or dealing in, shares, securities, investments, or estates or interests in land, ignoring section HB 1 (Look-through companies are transparent),–– (a) (b) is an owner of the look-through company; and personally and actively
 performs duties that–– (i) are required to be performed in carrying on the business of the look-through company; and are performed by the person during the currency of, and as required by, a contract of employment workplace group policy is deﬁned in section EY 30 (Transi- tional adjustments: life risk) work-related relocation is deﬁned in section CW 17B(4) (Re- location payments) work-related vehicle is deﬁned in section CX 38 (Meaning of work-related vehicle) year means a 12-month period year of transfer, for a relationship agreement, means the in- come year in which the date of transfer falls zero-rated investor, for an investor in an investor class of a PIE, means an investor referred to in section HM 57 (Pre- scribed investor rates for certain investors: 0%).
Compare: 2004 No 35 s OB 1 Section YA 1 1973 version provisions: repealed, on 1 April 2010, by sec- tion 557(2) of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 (2009 No 34).

Section YA 1 1988 version provisions: repealed, on 1 April 2010, by sec- tion 557(3) of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 (2009 No 34).
2978 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 1990 version provisions: repealed, on 1 April 2010, by sec- tion 557(4) of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 (2009 No 34).

Section YA 1 abating WFF tax credit: inserted, on 1 April 2008, by section 550(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 ACC: amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 accident compensation earnings-related payment paragraph (d): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 accommodation: inserted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(5) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 accounting proﬁts method: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(2) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 actuarial reserves: amended, on 1 July 2010, by section 557(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 actuarially determined: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(7) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 after-income tax earnings: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(8) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 after-income tax loss: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(9) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 agricultural, horticultural, or viticultural company: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(10) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 amalgamated company: substituted (with effect on 30 Septem- ber 2010), on 29 August 2011, by section 130(2) of the Taxation (Tax Admin- istration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 amalgamating company: substituted (with effect on 30 Septem- ber 2010), on 29 August 2011, by section 130(2) of the Taxation (Tax Admin- istration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 amalgamation: substituted (with effect on 30 September 2010), on 29 August 2011, by section 130(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 amount of tax: amended (with effect on 1 April 2008), on 7 Sep- tember 2010 (applying for the 2008–09 and later income years), by section 117(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, Kiwi- Saver, and Remedial Matters) Act 2010 (2010 No 109).

2979 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 amount of tax: amended, on 1 April 2008, by section 550(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 ancillary tax paragraph (kb): inserted, on 1 April 2008, by sec- tion 550(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 arm’s length amount: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(11) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 asset base: inserted, on 1 July 2010, by section 557(12) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 associated, associated person, person associated: substituted, on 1 April 2010, by section 557(13) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 associated internal software developer: inserted, on 1 April 2008, by section 550(5) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).

Section YA 1 associated non-attributing active CFC: replaced (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
inserted (with effect on 30 June Section YA 1 attributable CFC amount: 2009), on 6 October 2009, by section 557(16) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 attributable FIF income method: inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 attributed PIE income: inserted, on 1 April 2010, by sec- tion 557(17) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 attributed PIE loss: inserted, on 1 April 2010, by section 557(17) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 attribution period: inserted, on 1 April 2010, by section 557(18) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 available tax loss paragraph (c): added (with effect on 1 April 2008), on 29 August 2011, by section 130(3) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 available tax loss paragraph (d): added (with effect on 1 April 2008), on 29 August 2011, by section 130(3) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 balance date: amended, on 29 August 2011, by section 130(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
2980 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 basic tax rate paragraph (a): amended, on 1 April 2008, by sec- tion 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 basic tax rate paragraph (a): amended, on 1 April 2008, by sec- tion 550(6) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 beneﬁcial interest: inserted, on 1 April 2011 (applying for in- come years beginning on or after 1 April 2011), by section 132(2) of the Taxa- tion (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 beneﬁt fund PIE : inserted, on 1 April 2010, by section 557(19) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 best estimate assumptions: inserted, on 1 July 2010, by sec- tion 557(20) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 boutique investor class: inserted, on 1 April 2010, by sec- tion 557(21) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 boutique investor class paragraph (d): amended (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 132(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 branch equivalent company: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(6) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 branch equivalent income: amended (with effect on 30 June 2009), on 6 October 2009, by section 557(22) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 branch equivalent loss: amended (with effect on 30 June 2009), on 6 October 2009, by section 557(23) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 branch equivalent method: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(7) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).

Section YA 1 building: substituted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 132(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 calculation method: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(9) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 calculation period: inserted, on 1 April 2010, by section 557(24) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2981 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 cancellation: amended (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(25) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 capital contribution: substituted (with effect on 20 May 2010), on 28 May 2010, by section 96(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section YA 1 car: amended, on 10 May 2011, by section 100(3) of the Land Transport (Road Safety and Other Matters) Amendment Act 2011 (2011 No 13).

Section YA 1 charitable or other public beneﬁt gift: amended (with effect on 1 April 2008), on 7 September 2010, by section 117(4) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 charitable or other public beneﬁt gift: amended, on 6 January 2010, by section 557(26) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 charitable organisation paragraph (a): amended, on 1 April 2008, by section 550(7) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).
Section YA 1 charitable purpose paragraph (b)(i): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 child: amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 117(5) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 child paragraph (c): amended, on 1 April 2008, by section 550(8) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 civil union partner: amended, on 29 May 2012 (for the purposes of sections LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, applying for PAYE income payments made on or after 1 April 2013), by section 7(2) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section YA 1 civil union partner: amended, on 1 April 2009, by section 36(2) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section YA 1 class of policies: inserted, on 1 July 2010, by section 557(27) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 combined imputation and CTR ratio: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(10) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 combined tax and earner-related payment paragraph (b)(iii): amended, on 21 December 2010, by section 189 of the Taxation (GST and Re- medial Matters) Act 2010 (2010 No 130).

2982 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 commercial building: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 132(5) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 commercial ﬁt-out: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 132(6) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 company paragraph (ab): inserted, on 1 April 2008, by section 23(3) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 company paragraph (abb): inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(7) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 company paragraph (ac): inserted, on 1 April 2008, by section 23(3) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 company paragraph (ad): inserted, on 1 April 2008, by section 23(3) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 compensation: repealed, on 29 May 2012 (for the purposes of sections LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, applying for PAYE income payments made on or after 1 April 2013), by section 7(3) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section YA 1 complying fund calculation period: repealed, on 1 April 2009, by section 56(2) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section YA 1 complying fund rules: replaced, on 1 April 2012, by section 13(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Section YA 1 complying superannuation fund: amended, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).

Section YA 1 compulsory employer contribution: inserted, on 1 April 2008, by section 135(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section YA 1 consideration paragraph (aa): inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(28) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 consideration paragraph (b)(ii): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(11) of the Taxation (International Investment and Remed- ial Matters) Act 2012 (2012 No 34).
Section YA 1 consolidated FDP group: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(29) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 continuity provisions paragraph (i): substituted (with effect on 30 June 2009), on 6 October 2009, by section 557(30) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 contract of employment: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(8) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

2983 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 control: repealed, on 1 April 2010, by section 557(31) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 convert: substituted (with effect on 1 January 2009), on 6 Oc- tober 2009, by section 557(32) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 cost of timber: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 118(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 council-controlled organisation paragraph (b): amended, on 2 December 2011, by section 14(1) of the Local Government Borrowing Act 2011 (2011 No 77).

Section YA 1 council-controlled organisation paragraph (b): amended, on 1 November 2010, by section 113(1) of the Local Government (Auckland Tran- sitional Provisions) Act 2010 (2010 No 37).
Section YA 1 cover review period: inserted, on 1 July 2010, by section 557(33) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 credit account continuity provisions paragraph (c): substituted (with effect on 30 June 2009), on 6 October 2009, by section 557(34) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
inserted, on 1 July 2010, Section YA 1 credit card repayment insurance: by section 557(35) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 creditable membership: inserted, on 1 April 2008, by section 135(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section YA 1 creditable membership paragraph (b)(i): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(36)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 creditable membership paragraph (b)(ib): inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(36)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 creditor workout: substituted (with effect on 1 April 2008), on 7 December 2009, by section 118(3) of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 CTR: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 CTR account: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
2984 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 CTR additional dividend: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 CTR company: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 CTR credit: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 CTR debit: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 CTR group member: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 CTR holding company: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).

Section YA 1 CTR ratio: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 CTRA: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(15) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 current accounting year: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(38) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 debt security: inserted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(39) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 deductible foreign equity distribution: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(40) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 deductible foreign equity distribution paragraph (a): replaced (with effect on 27 October 2010), on 7 May 2012, by section 132(16) of the Tax- ation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

inserted, on 1 April 2011, by section Section YA 1 deductible output tax: 132(9) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
2985 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 dependent child: substituted, on 24 August 2010 (applying for the 2008–09 and later income years), by section 7(1) of the Taxation (Deﬁnitions of Dependent Child) Act 2010 (2010 No 104).

Section YA 1 derivative instrument: substituted (with effect on 30 June 2009), on 6 October 2009, by section 557(41) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 derived from New Zealand: repealed, on 21 December 2010, by section 132(10) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 development: amended, on 1 April 2008, by section 550(10) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 direct income interest: substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(42) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 dispose paragraph (g): amended, on 1 April 2008, by section 23(4) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 dispose paragraph (h): added, on 1 April 2008, by section 23(4) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 district health board: repealed, on 1 October 2009, by section 20(2) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section YA 1 dividend paragraph (a): substituted (with effect on 30 June 2009), on 6 October 2009, by section 557(43) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 dividend paragraph (c)(ii): substituted, on 1 April 2010, by sec- tion 557(44)(a) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 dividend paragraph (d)(i): substituted, on 1 April 2010, by sec- tion 557(44)(b) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 dividend paragraph (f): added (with effect on 1 April 2008), on 7 December 2009, by section 118(4) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 donee organisation: inserted, on 6 January 2010, by sec- tion 557(45) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 dwelling: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 132(11) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

inserted, on 1 July 2010, Section YA 1 early life regime application day: by section 557(46) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 effective look-through interest: inserted, on 1 April 2011 (ap- plying for income years beginning on or after 1 April 2011), by section 132(12) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

2986 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 inserted, on 6 October 2009, by sec- Section YA 1 emergency event: tion 557(47) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 emissions unit: inserted (with effect on 1 January 2009), on 6 Oc- tober 2009, by section 557(48) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 emissions unit shortfall year: inserted (with effect on 1 April 2010), on 21 December 2010 (applying for the 2010–11 and later income years), by section 132(13) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 employee paragraph (ab): inserted (with effect on 1 April 2008), on 29 August 2011, by section 130(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 employee paragraph (b): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(49) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employee paragraph (c)(i): amended, on 1 April 2008, by section 550(12) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 employee paragraph (c)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(50) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employee paragraph (db): inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(14) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 employee’s superannuation accumulation paragraph (a): sub- stituted (with effect on 1 April 2008), on 6 October 2009, by section 557(51) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employer paragraph (b)(iib): inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(15) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 employer paragraph (c)(i): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(52)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employer paragraph (c)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(52)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 employer contribution: inserted, on 1 April 2008, by section 135(5) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section YA 1 employer monthly schedule paragraph (e): substituted, on 6 January 2010, by section 557(53) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 employer monthly schedule paragraph (f): amended, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section YA 1 employer monthly schedule paragraph (h): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(54) of the Taxation 2987 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employer monthly schedule paragraph (k): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 118(5) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 employer-sourced superannuation savings paragraph (a): amended (with effect on 1 April 2008), on 6 October 2009, by sec- tion 557(55)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employer-sourced superannuation savings paragraph (c): amended (with effect on 1 April 2008), on 6 October 2009, by sec- tion 557(55)(b)(i) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 employer-sourced superannuation savings paragraph (c): amended (with effect on 1 April 2008), on 6 October 2009, by sec- tion 557(55)(b)(ii) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employer sponsored group policy: repealed, on 1 July 2010, by section 118(6) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 employer’s superannuation contribution: substituted (with ef- fect on 1 April 2008), on 6 October 2009, by section 557(57) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 employment: amended, on 23 November 2010, by section 25 of the Governor-General Act 2010 (2010 No 122).

Section YA 1 employment paragraph (b): amended, on 1 April 2008, by section 550(13) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 engaged in full-time work: repealed, on 29 May 2012 (for the purposes of sections LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, applying for PAYE income pay- ments made on or after 1 April 2013), by section 7(4) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section YA 1 entering owner: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(16) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 entering partner: inserted, on 1 April 2008, by section 23(5) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 equity instrument: inserted, on 1 April 2008, by section 550(14) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 ESCT: substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(58) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

2988 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 ESCT rate threshold amount: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(59) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 ETS unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 557(60) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 excess debt outbound company : inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(61) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 excess credit amount: replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(17) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).

Section YA 1 excluded ancillary tax paragraph (d): repealed (with effect on 1 April 2008), on 6 October 2009, by section 557(62) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 excluded ﬁxed rate security: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(63) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 excluded preference share: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(64) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 exempt interest paragraph (f): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 existing business: inserted, on 1 July 2010, by section 557(65) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 exit level: inserted, on 1 April 2010, by section 557(66) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 exit period: inserted, on 1 April 2010, by section 557(66) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 expected life risk proportion: inserted, on 1 July 2010, by sec- tion 557(67) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 fair dividend rate method: substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(68) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 fair value method: substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(69) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 family assistance credit: repealed, on 1 April 2008, by section 550(16) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

2989 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 family plus: repealed, on 1 April 2008, by section 550(17) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 family support: repealed, on 1 April 2008, by section 550(18) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 FDP rules: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 557(70) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 FIF net loss: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(18) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 ﬁnance lease paragraph (b): amended, on 1 April 2008, by section 550(19) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 ﬁnance lease paragraph (c): added, on 1 April 2008, by section 550(19) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 ﬁnancial asset: inserted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 557(71) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 ﬁnancial institution: inserted (with effect on 1 June 2010), on 7 September 2010, by section 117(6) of the Taxation (Annual Rates, Trans- Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 ﬁnancial institution special purpose vehicle: inserted (with ef- fect on 1 June 2010), on 7 September 2010, by section 117(6) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).
Section YA 1 ﬁnancial institution special purpose vehicle paragraph (c): sub- stituted, on 21 December 2010, by section 132(17)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 ﬁnancial institution special purpose vehicle paragraph (d)(ii): amended, on 21 December 2010, by section 132(17)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 ﬁnancial risk: inserted, on 1 July 2010, by section 557(72) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 ﬁnancial statements: substituted, on 1 April 2010, by sec- tion 557(73) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 ﬁrst tracking date: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(74) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 ﬁshing quota emissions unit: inserted (with effect on 1 July 2010), on 7 September 2010, by section 117(7) of the Taxation (Annual Rates, 2990 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 ﬁxed-rate foreign equity: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(75) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 ﬁxed-rate share paragraph (e): repealed (with effect on 1 April 2008), on 6 October 2009, by section 557(76)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 ﬁxed-rate share paragraph (f): substituted (with effect on 1 April 2008), on 7 December 2009, by section 118(7) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 ﬁxed-rate share paragraph (g): substituted (with effect on 1 April 2008), on 7 December 2009, by section 118(7) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 ﬁxed-rate share paragraph (h): added (with effect on 1 April 2008), on 7 December 2009, by section 118(7) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 ﬁxed-rate share paragraph (h)(iii): amended (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 130(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 ﬁxed-rate share paragraph (i): added (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 130(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 FMA: inserted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
Section YA 1 foreign attributed income paragraph (b): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(19) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 foreign attributed loss offsets: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(20) of the Taxation (International Investment and Remed- ial Matters) Act 2012 (2012 No 34).

Section YA 1 foreign corporate limited partnership: inserted, on 1 April 2008, by section 23(6) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 foreign dividend: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(77) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 foreign dividend company: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(78) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 foreign dividend company net earnings: repealed (with ef- fect on 30 June 2009), on 6 October 2009, by section 557(79) of the Taxation 2991 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 foreign group: repealed (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 557(80) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 foreign investment PIE: inserted, on 29 August 2011, by section 130(7) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 foreign investment variable-rate PIE: inserted, on 29 August 2011, by section 130(7) of the Taxation (Tax Administration and Remedial Mat- ters) Act 2011 (2011 No 63).
Section YA 1 foreign investment zero-rate PIE: inserted, on 29 August 2011, by section 130(7) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 foreign non-dividend income: substituted, on 21 December 2010, by section 132(18) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 foreign PIE equivalent: inserted, on 1 April 2010, by sec- tion 557(81) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 forest land emissions unit: substituted (with effect on 1 January 2009), on 7 September 2010, by section 117(9) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 forest land unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 557(82) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 forest sink emissions unit: inserted (with effect on 1 January 2009), on 7 September 2010, by section 117(9) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 forestry business: inserted (with effect on 1 April 2008), on 7 De- cember 2009, by section 118(8) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 formation loss: inserted, on 1 April 2010, by section 557(83) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 fully credited for conduit tax relief: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(21) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 fully imputed: inserted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(84) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 general insurance contract: repealed (with effect on 1 April 2008), on 7 September 2010, by section 117(10) of the Taxation (Annual Rates, 2992 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 general partner: inserted, on 1 April 2008, by section 23(7) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 gifting settlor: inserted, on 1 April 2008, by section 550(21) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 government screen production payment: repealed (with effect on 1 January 2010), on 7 September 2010, by section 117(11) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).
Section YA 1 grandparented structure: inserted (with effect on 30 July 2009), on 28 May 2010, by section 96(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section YA 1 grandparenting income year: inserted, on 1 April 2011, by section 132(19) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 grandparenting start day: inserted, on 1 July 2010, by sec- tion 557(87) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 grey list company: substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(88) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 grey list dividend: repealed (with effect on 30 June 2008), on 6 October 2009, by section 557(89) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 group life master policy: inserted, on 1 July 2010, by sec- tion 557(90) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 group of companies: amended, on 1 April 2008, by section 550(22) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 holding company paragraph (a): substituted, on 1 April 2010, by section 557(91) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 home: repealed, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(5) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section YA 1 honorarium: inserted (with effect on 1 April 2009), on 6 Oc- tober 2009, by section 557(92) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 honorarium: amended (with effect on 1 April 2009), on 7 Sep- tember 2010, by section 117(12) of the Taxation (Annual Rates, Trans-Tas- man Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

2993 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 household member: repealed, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(6) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section YA 1 housekeeper: repealed, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(7) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section YA 1 housekeeping payments: repealed, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(8) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section YA 1 IFRS: inserted, on 1 April 2008, by section 550(23) of the Taxa- tion (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 IFRS: amended, on 1 July 2011, by section 12 of the Financial Reporting Amendment Act 2011 (2011 No 22).

Section YA 1 IFRS 4: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(93) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 IFRSE: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(94) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 impaired credit adjustment: inserted, on 1 April 2008, by sec- tion 550(23) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 income derived from New Zealand: repealed, on 21 December 2010, by section 132(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 income from employment paragraph (b)(iv): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 income from employment paragraph (d): added (with effect on 1 April 2008), on 6 October 2009, by section 557(95) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 income interest paragraph (b): amended (with effect on 30 June 2009), on 6 October 2009, by section 557(96) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 income tax liability paragraph (a)(ii): substituted, on 1 April 2010, by section 557(97) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 independent living: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 132(21) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 industry research co-operative: repealed, on 1 October 2009, by section 20(3) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section YA 1 initial provisional tax liability paragraph (b)(ii): amended, on 1 April 2009, by section 22(2) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
2994 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 institution: repealed, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(9) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section YA 1 internal software development: inserted, on 1 April 2008, by section 550(25) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 internal software development controller: inserted, on 1 April 2008, by section 550(25) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).

Section YA 1 internal software development group: inserted, on 1 April 2008, by section 550(25) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 international tax rules paragraph (a)(xiii): substituted (with ef- fect on 1 April 2008), on 6 October 2009, by section 557(98) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 international tax rules paragraph (a)(xiv): repealed, on 1 April 2010, by section 557(100) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 international tax rules paragraph (a)(xv): repealed (with ef- fect on 1 April 2008), on 6 October 2009, by section 557(99) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 international tax rules paragraph (b): amended, on 1 April 2010, by section 557(101) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 investment activity: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 96(5) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section YA 1 investor paragraph (b): substituted, on 1 April 2010, by sec- tion 557(102) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 investor paragraph (c): repealed, on 1 April 2008, by section 550(26) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 investor class: inserted, on 1 April 2010, by section 557(103) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 investor interest: inserted, on 1 April 2010, by section 557(103) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 non-refundable tax credit: amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(10) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section YA 1 paid work: repealed, on 29 May 2012 (for the purposes of sec- tions LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, applying for PAYE income payments made on 2995 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 or after 1 April 2013), by section 7(11) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section YA 1 personal injury by accident: repealed, on 29 May 2012 (for the purposes of sections LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, applying for PAYE income pay- ments made on or after 1 April 2013), by section 7(12) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section YA 1 separated person: amended, on 29 May 2012 (applying for the 2012–13 and later tax years), by section 7(13) of the Taxation (Budget Meas- ures) Act 2012 (2012 No 38).

Section YA 1 spouse: amended, on 29 May 2012 (for the purposes of sections LC 4 and LC 5 and schedule 2, and of sections 24B and 24H(7) of the Tax Administration Act 1994, applying for PAYE income payments made on or after 1 April 2013), by section 7(14) of the Taxation (Budget Measures) Act 2012 (2012 No 38).
Section YA 1 in-work payment: repealed, on 1 April 2008, by section 550(27) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 in-work tax credit: inserted, on 1 April 2008, by section 550(27) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 jurisdictional attributed income: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(104) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 jurisdictional attributed income: amended (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 130(8) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 jurisdictional BE income: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(104) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 jurisdictional BE income: amended (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 130(8) of the Taxation (Tax Administration and Re- medial Matters) Act 2011 (2011 No 63).
Section YA 1 jurisdictional income ratio: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(104) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 jurisdictional income ratio: amended (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 130(8) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 KiwiSaver calculation period: repealed, on 1 April 2009, by section 56(3) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

2996 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 Kyoto unit: repealed (with effect on 1 January 2009), on 6 Oc- tober 2009, by section 557(105) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 land investment company: substituted (with effect on 1 April 2010), on 21 December 2010, (applying for the 2010–11 and later income years) by section 132(22) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 land investment company paragraph (c): amended (with effect on 1 April 2010), on 29 August 2011 (applying for the 2010–11 and later income years), by section 130(9) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 land loss: inserted, on 1 April 2010, by section 557(106) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 land provisions: inserted, on 1 April 2010, by section 557(107) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 LAQC: repealed, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(23) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 large budget ﬁlm grant: inserted (with effect on 1 January 2010), on 7 September 2010, by section 117(14) of the Taxation (Annual Rates, Trans- Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 large budget screen production grant: repealed, on 1 January 2010, by section 557(108) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 lease paragraph (d): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(23) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 lease paragraph (d)(vi): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(9) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 lease paragraph (d)(vii): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(9) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 lease paragraph (f)(i): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(109) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 lease paragraph (f)(ii): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(10) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 legal expenses: inserted, on 1 April 2009, by section 22(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).

2997 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 lessee paragraph (a): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(11)(a) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 lessee paragraph (b): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(11)(b) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 lessor paragraph (a): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(12)(a) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 lessor paragraph (b): amended (with effect on 1 April 2008), on 7 December 2009, by section 118(12)(b) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 life ﬁnancial reinsurance: inserted, on 1 January 2010, by sec- tion 557(110) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 life fund PIE : inserted, on 1 April 2010, by section 557(111) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 life risk: inserted, on 1 July 2010, by section 557(112) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 life risk component: inserted, on 1 July 2010, by sec- tion 557(113) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 limited non-transaction shares: inserted (with effect on 1 April 2010), on 7 September 2010, by section 117(15) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 limited partner: inserted, on 1 April 2008, by section 23(8) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 limited partnership: inserted, on 1 April 2008, by section 23(8) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 limited partnership deduction: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(114) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
repealed (with effect Section YA 1 limited partnership net deduction: on 1 April 2008), on 6 October 2009, by section 557(114) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 lines trust: inserted, on 1 April 2010, by section 557(115) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 listed limited partnership: inserted, on 1 April 2008, by section 23(9) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 listed PIE : inserted, on 1 April 2010, by section 557(116) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2998 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 listed research provider: repealed, on 1 October 2009, by section 20(4) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section YA 1 loan paragraph (b): amended (with effect on 30 June 2009), on 6 October 2009, by section 557(117) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 local authority paragraph (b)(vii): substituted, on 1 November 2010, by section 113(1) of the Local Government (Auckland Transitional Pro- visions) Act 2010 (2010 No 37).

Section YA 1 local authority paragraph (b)(ix): added, on 2 December 2011, by section 14(2) of the Local Government Borrowing Act 2011 (2011 No 77).
Section YA 1 look-through company: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(24) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 look-through company deduction: inserted, on 1 April 2011 (ap- plying for income years beginning on or after 1 April 2011), by section 132(25) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 look-through counted owner: inserted, on 1 April 2011 (apply- ing for income years beginning on or after 1 April 2011), by section 132(26) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 look-through interest: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(27) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 loss paragraph (c): replaced (with effect on 1 July 2011 and apply- ing for income years beginning on or after that date), on 7 May 2012, by section 132(24) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 loss-attributing qualifying company: repealed, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(28) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 loss balance: substituted (with effect on 1 April 2008), on 7 De- cember 2009, by section 118(13) of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 major shareholder paragraph (c): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 130(10) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 major shareholder paragraph (d): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 130(10) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 market value circumstance paragraph (a)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(118) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 maximum permitted ratio: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, 2999 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 by section 132(25) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 member paragraph (b): repealed, on 1 April 2011, by section 117(16) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 member credit contribution: inserted, on 1 April 2008, by sec- tion 135(6) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section YA 1 member credit contribution paragraph (a)(i): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(119)(a) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 member credit contribution paragraph (a)(iib): inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(119)(b) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 member credit contribution paragraph (b): substituted (with ef- fect on 1 April 2008), on 6 October 2009, by section 557(119)(c) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 minimum family tax credit: inserted, on 1 April 2008, by section 550(29) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 monthly instalment plan: amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by sec- tion 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 mortality proﬁt: repealed, on 1 July 2010, by section 557(120) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 mortality proﬁt formula: repealed, on 1 July 2010, by sec- tion 557(120) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 multi-rate PIE: inserted, on 1 April 2010, by section 557(121) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 multi-rate PIE paragraph (e): repealed, on 1 July 2010, by sec- tion 557(122) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 net attributable CFC income: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(123) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 net attributable CFC loss: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(123) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 net attributable FIF income: inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, 3000 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 by section 132(26) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 net attributable FIF loss: inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(26) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).

Section YA 1 net family scheme income: amended, on 1 April 2008, by section 550(30) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 net mining loss: inserted (with effect on 1 April 2008), on 7 De- cember 2009, by section 118(14) of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 new business: inserted, on 1 July 2010, by section 557(124) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 new company tax rate person: inserted, on 1 October 2010, by section 30(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section YA 1 new personal tax rate person: substituted, on 1 October 2010, by section 30(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section YA 1 new reporting standard: inserted (with effect on 1 April 2008), on 7 December 2009, by section 118(15) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 new start grant: substituted, on 6 October 2009, by sec- tion 557(125) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 new tax rate person: repealed, on 1 October 2010, by sec- tion 30(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section YA 1 New Zealand banking group: amended (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(27) of the Taxation (International Investment and Remed- ial Matters) Act 2012 (2012 No 34).

Section YA 1 New Zealand emissions unit: inserted (with effect on 1 January 2009), on 6 October 2009, by section 557(127) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 New Zealand partnership: inserted, on 1 April 2008, by section 23(10) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 New Zealand unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 557(127) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 Niue International Trust Fund: inserted, on 1 April 2008, by section 550(32) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 non-attributing active CFC: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(128) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 non-attributing Australian CFC: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(128) of the Taxation 3001 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 non-creditable dividend: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(129) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 non-ﬁling taxpayer paragraph (b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(130) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 non-ﬁling taxpayer paragraph (b): amended, on 21 December 2010, by section 132(29) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 non-integral fee: inserted, on 1 April 2008, by section 550(33) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 non-Kyoto greenhouse gas unit: inserted (with effect on 1 Janu- ary 2009), on 6 October 2009, by section 557(131) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 non-Kyoto greenhouse gas unit paragraph (a): amended (with effect on 1 January 2009), on 7 September 2010, by section 117(18) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).

Section YA 1 non-refundable tax credit paragraph (ab): inserted, on 6 January 2010, by section 557(132) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 non-refundable tax credit paragraph (d): repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(28) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 non-refundable tax credit paragraph (g): substituted, on 1 April 2010, by section 557(133) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 non-resident entertainer paragraph (b): substituted (with ef- fect on 1 April 2008), on 6 October 2009, by section 557(134) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 non-resident entertainer paragraph (c): repealed (with effect on 1 April 2008), on 6 October 2009, by section 557(134) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 non-resident seasonal worker: inserted, on 6 October 2009, by section 557(135) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 non-resident seasonal worker: repealed (with effect on 6 Octo- ber 2009), on 21 December 2010, by section 132(31) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
3002 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 notiﬁed foreign investor: inserted, on 29 August 2011, by section 130(11) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 notiﬁed investor rate: inserted, on 1 April 2010, by sec- tion 557(136) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 notiﬁed investor rate: amended, on 1 October 2010, by sec- tion 30(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section YA 1 novelty: inserted, on 1 April 2008, by section 550(34) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 NZIAS 2: inserted, on 1 April 2008, by section 550(35) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 NZIAS 2: amended, on 1 July 2011, by section 12 of the Financial Reporting Amendment Act 2011 (2011 No 22).

Section YA 1 NZIAS 8: inserted, on 1 April 2008, by section 550(35) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 NZIAS 8: amended, on 1 July 2011, by section 12 of the Financial Reporting Amendment Act 2011 (2011 No 22).
Section YA 1 NZIAS 17: inserted, on 1 April 2008, by section 550(35) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 NZIAS 17: amended, on 1 July 2011, by section 12 of the Finan- cial Reporting Amendment Act 2011 (2011 No 22).

Section YA 1 NZIAS 23: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(137) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 NZIAS 23: amended, on 1 July 2011, by section 12 of the Finan- cial Reporting Amendment Act 2011 (2011 No 22).

Section YA 1 NZIAS 28: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(29) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 NZIAS 31: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(29) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 NZIAS 32: inserted, on 1 April 2008, by section 550(35) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 NZIAS 32: amended, on 1 July 2011, by section 12 of the Finan- cial Reporting Amendment Act 2011 (2011 No 22).

Section YA 1 NZIAS 39: inserted, on 1 April 2008, by section 550(35) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 NZIAS 39: amended, on 1 July 2011, by section 12 of the Finan- cial Reporting Amendment Act 2011 (2011 No 22).
Section YA 1 NZIAS 41: inserted, on 1 April 2008, by section 550(35) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

3003 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 offshore development: repealed (with effect on 1 April 2008), on 6 October 2009, by section 557(138) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 old company tax rate: inserted, on 1 April 2008, by section 550(36) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 old company tax rate: amended (with effect on 1 October 2010), on 7 May 2012, by section 132(30)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 old company tax rate: amended (with effect on 1 October 2010), on 7 May 2012, by section 132(30)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section YA 1 old reporting standard: inserted (with effect on 1 April 2008), on 7 December 2009, by section 118(16) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 onshore development: repealed (with effect on 1 April 2008), on 6 October 2009, by section 557(139) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 operating lease: amended (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(140) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 outstanding claims reserve: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(141) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 outstanding claims reserve paragraph (a): amended (with effect on 1 April 2008), on 21 December 2010, by section 132(32) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 overseas eligible expenditure: repealed, on 1 October 2009, by section 20(5) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section YA 1 overtime: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(142) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 ownership interest: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(143) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 owner’s interests: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(33) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 Part F activity: inserted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(144) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 partner: substituted, on 1 April 2008, by section 23(11) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 partner’s associate: inserted, on 1 April 2008, by section 23(11) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
3004 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 partner’s interests: inserted, on 1 April 2008, by section 23(11) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 partnership: substituted, on 1 April 2008, by section 23(11) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 partnership share: inserted, on 1 April 2008, by section 23(11) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 partnership share: amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 pay paragraph (bb): inserted, on 6 January 2010, by sec- tion 557(145) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 PAYE income payment: amended (with effect on 4 September 2010), on 24 May 2011, by section 11(2) of the Taxation (Canterbury Earth- quake Measures) Act 2011 (2011 No 24).

Section YA 1 PAYE income payment form paragraph (f): amended, on 1 April 2012, by section 223 of the Student Loan Scheme Act 2011 (2011 No 62).
Section YA 1 PAYE income payment form paragraph (g): amended (with ef- fect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Re- medial Matters) Act 2011 (2011 No 63).

Section YA 1 PAYE income payment form paragraph (h): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(146)(a) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 PAYE income payment form paragraph (i): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(146)(b) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 payroll donation: inserted, on 6 January 2010, by sec- tion 557(147) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 personal service rehabilitation payment: inserted, on 1 April 2008, by section 550(38) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).

Section YA 1 personal service rehabilitation payment paragraph (a): substi- tuted (with effect on 1 July 2008), on 6 October 2009, by section 557(148)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 personal service rehabilitation payment paragraph (a): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 personal service rehabilitation payment paragraph (c): substi- tuted (with effect on 1 July 2008), on 6 October 2009, by section 557(148)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3005 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 petroleum mining development: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(149) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 petroleum mining operations: substituted, on 1 April 2008, by section 550(39) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 PFSI forestry business: inserted (with effect on 1 April 2008), on 7 December 2009, by section 118(17) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 PFSI forestry income: inserted (with effect on 1 April 2008), on 7 December 2009, by section 118(17) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 PIE: inserted, on 1 April 2010, by section 557(150) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 PIE rules: inserted, on 1 April 2010, by section 557(150) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 PIE rules paragraph (a)(v): amended, on 29 August 2011, by section 130(12)(a) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 PIE rules paragraph (a)(vb): inserted, on 29 August 2011, by section 130(12)(b) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 PIE rules paragraph (a)(vii): amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 118(18) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 PIE rules paragraph (a)(viii): amended, on 29 August 2011, by section 130(12)(c) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 PIE rules paragraph (b): amended, on 29 August 2011, by sec- tion 130(12)(d) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 plant: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 132(34) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 policy liabilities: inserted, on 1 July 2010, by section 557(151) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 policyholder base: substituted, on 1 July 2010, by sec- tion 557(152) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 policyholder base allowable deductions: inserted, on 1 July 2010, by section 557(152) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

3006 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 inserted, on 1 July 2010, by sec- Section YA 1 policyholder base income: tion 557(152) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 policyholder base income tax liability: repealed, on 1 July 2010, by section 557(153) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 policyholder credit: repealed, on 1 July 2010, by sec- tion 557(153) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 policyholder credit account: repealed, on 1 July 2010, by sec- tion 557(153) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 policyholder debit: repealed, on 1 July 2010, by section 557(153) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 policyholder FDP ratio: repealed, on 1 July 2010, by sec- tion 557(153) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

repealed, on 1 July 2010, by sec- Section YA 1 policyholder income: tion 557(153) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 policyholder income formula: repealed, on 1 July 2010, by sec- tion 557(153) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 policyholder net loss: repealed, on 1 July 2010, by sec- tion 557(153) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 policyholder unvested liabilities: inserted, on 1 July 2010, by section 118(19) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 portable New Zealand superannuation: substituted, on 5 Janu- ary 2010, by section 118(20) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 portable veteran’s pension: substituted, on 5 January 2010, by section 118(20) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 portfolio allocation period: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio calculation period: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio class fraction: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
3007 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 portfolio class investment value: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio class net income: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio class net loss: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio class taxable income: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio class taxable loss: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio deﬁned beneﬁt fund: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio entity formation loss: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio entity investment: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio entity tax liability: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

inserted, on 1 April 2010, by sec- Section YA 1 portfolio investment: tion 557(155) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio investment entity: substituted, on 1 April 2010, by section 557(155) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio investment-linked life fund: inserted, on 1 July 2008, by section 550(42) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 portfolio investor allocated income: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio investor allocated loss: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio investor class: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

3008 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 portfolio investor exit period: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio investor interest: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio investor interest fraction: repealed, on 1 April 2010, by section 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio investor proxy: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio investor rate: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio land company: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 portfolio listed company: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 portfolio tax rate entity: repealed, on 1 April 2010, by sec- tion 557(154) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 post-1989 forest land: substituted (with effect on 1 January 2009), on 6 October 2009, by section 557(159) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 post-1989 forest land emissions unit: substituted (with effect on 1 April 2010), on 7 September 2010, by section 117(19) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 post-1989 forest land unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 557(159) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 post-treaty tax rate: inserted, on 1 February 2010, by sec- tion 118(21) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 pre-1990 forest land: substituted (with effect on 1 January 2009), on 6 October 2009, by section 557(160) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 pre-1990 forest land emissions unit: substituted (with effect on 1 April 2010), on 7 September 2010, by section 117(20) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 pre-1990 forest land unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 557(160) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3009 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 premium paragraph (a)(iii): added, on 1 July 2010, by sec- tion 557(161) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 premium loading: repealed, on 1 July 2010, by section 557(162) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 premium loading formula: repealed, on 1 July 2010, by sec- tion 557(162) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 premium payback amount: inserted, on 1 July 2010, by sec- tion 557(163) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Section YA 1 prescribed investor rate: inserted, on 1 April 2010, by sec- tion 557(167) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 prescribed investor rate: amended, on 1 April 2012 (applying for the 2012–13 and later income years), by section 130(13) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 prescribed investor rate: amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 118(22) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 present value (gross): inserted, on 1 July 2010, by sec- tion 557(168) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 present value (net): inserted, on 1 July 2010, by section 557(168) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 principal caregiver: amended, on 1 April 2008, by section 550(49) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 proﬁt participation policy: inserted, on 1 July 2010, by sec- tion 557(169) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 proﬁt participation policy paragraph (b)(ii): amended (with ef- fect on 1 July 2010), on 21 December 2010, by section 132(35) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 proﬁt participation policy paragraph (c): added (with effect on 1 July 2010), on 21 December 2010, by section 132(35) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 proﬁt-related debenture: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(170) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 projected transactions shareholding: inserted (with effect on 1 April 2010), on 7 September 2010, by section 117(21) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
3010 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 property paragraph (ab): inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(36) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 property paragraph (ac): inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(36) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 proportional-stapling company: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(171) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 protected family support: repealed, on 1 April 2008, by section 550(50) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 protected family tax credit: inserted, on 1 April 2008, by section 550(50) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 PSR period: inserted, on 1 July 2010, by section 557(172) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 public authority paragraph (b): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

repealed, on 6 October 2009, by sec- Section YA 1 qualifying event: tion 557(173) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 QCP transitional process: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(37) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 QCST transitional process: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(38) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 recognised seasonal employment scheme: inserted, on 6 Oc- tober 2009, by section 557(174) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 redundancy payment: repealed, on 1 April 2011 (applying for the 2011–12 and later income years), by section 96(6) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section YA 1 refundable tax credit paragraph (a): amended, on 1 April 2008, by section 550(52) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 refundable tax credit paragraph (bb): inserted, on 1 April 2008, by section 550(52) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 refundable tax credit paragraph (d): substituted, on 1 April 2010, by section 557(177) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

3011 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 refundable tax credit paragraph (e): substituted, on 1 April 2010, by section 557(177) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 registered as a charitable entity: repealed, on 1 July 2008, by section 48(4) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section YA 1 reinsurance grandparenting start day: inserted, on 1 July 2010, by section 557(178) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 related person: substituted, on 1 April 2010, by section 557(179) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 relative: substituted, on 1 April 2010, by section 557(180) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 relative paragraph (a): amended, on 1 April 2010, by section 118(23)(a) of the Taxation (Consequential Rate Alignment and Remedial Mat- ters) Act 2009 (2009 No 63).

Section YA 1 relative paragraph (b): amended, on 1 April 2010, by section 118(23)(b) of the Taxation (Consequential Rate Alignment and Remedial Mat- ters) Act 2009 (2009 No 63).
Section YA 1 relative paragraph (c): added, on 1 April 2010, by section 118(23)(c) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 replacement ETS unit: repealed (with effect on 1 January 2009), on 6 October 2009, by section 557(181) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 replacement forest land emissions unit: inserted (with effect on 1 January 2009), on 6 October 2009, by section 557(181) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 replacement forest land emissions unit paragraph (a): sub- stituted (with effect on 1 January 2009), on 7 September 2010, by section 117(22)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 replacement forest land emissions unit paragraph (b): amended (with effect on 1 January 2009), on 7 September 2010, by section 117(22)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 reporting standard: repealed (with effect on 1 April 2008), on 7 December 2009, by section 118(24) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 required interest: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(182) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 research: amended, on 1 April 2008, by section 550(54) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
3012 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 research and development activities: inserted, on 1 April 2008, by section 550(55) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 research and development project: repealed, on 1 October 2009, by section 20(6) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
Section YA 1 resident group member: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(183) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 resident group member: amended (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 130(8) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 resident in Australia: amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 residential mortgage backed security: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(184) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 residual income tax paragraph (b)(iiib): inserted, on 1 April 2008, by section 550(56) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).

Section YA 1 residual income tax paragraph (b)(iiic): inserted (with effect on 1 April 2009), on 21 December 2010, by section 132(39) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 residual income tax paragraph (b)(vb): inserted, on 1 April 2008, by section 550(56) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 retained earnings: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(185) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 retirement savings scheme: inserted, on 1 April 2008, by section 550(57) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 retirement scheme contribution: inserted, on 1 April 2008, by section 550(57) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 retirement scheme contributor: inserted, on 1 April 2008, by section 550(57) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 retirement scheme prescribed rate: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 118(25) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
3013 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 revenue account property: substituted (with effect on 1 January 2009), on 6 October 2009, by section 557(186) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 revenue account property paragraph (b): amended (with effect on 1 January 2009), on 7 September 2010, by section 117(24) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).

Section YA 1 revenue account property paragraph (c): amended (with effect on 1 January 2009), on 29 August 2011, by section 130(14) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 revenue account property paragraph (d): added (with effect on 1 January 2009), on 29 August 2011, by section 130(14) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 RMBS special purpose vehicle: repealed (with effect on 1 June 2010), on 7 September 2010, by section 117(25) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 RSCT: inserted, on 1 April 2008, by section 550(58) of the Tax- ation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 RSCT rules: inserted, on 1 April 2008, by section 550(58) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 RWT proxy: amended (with effect on 1 April 2008), on 7 De- cember 2009, by section 118(27) of the Taxation (Consequential Rate Align- ment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 RWT substitution payment: inserted (with effect on 1 April 2008), on 29 August 2011, by section 130(15) of the Taxation (Tax Adminis- tration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 salary or wages paragraph (b): replaced, on 1 April 2012, by section 13(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section YA 1 savings component: inserted, on 1 July 2010, by section 557(189) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 savings product policy: substituted, on 1 July 2010, by section 118(28) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 savings product policy paragraph (b): amended (with effect on 1 July 2010), on 7 September 2010, by section 117(26) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 schedular income paragraph (a): substituted, on 1 July 2010, by section 557(190) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 schedular income paragraph (c): repealed (with effect on 1 April 2008), on 6 October 2009, by section 557(191) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

3014 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 schedular income paragraph (db): inserted, on 1 April 2010, by section 557(192) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 schedular income paragraph (f): amended (with effect on 1 April 2008), on 6 October 2009, by section 557(193) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 schedular policyholder base income: inserted, on 1 July 2010, by section 557(194) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
inserted, on 1 April Section YA 1 scientiﬁc or technological uncertainty: 2008, by section 550(59) of the Taxation (Business Taxation and Remedial Mat- ters) Act 2007 (2007 No 109).

Section YA 1 secured amounts: substituted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(40) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 settlor: amended, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(41) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 settlor paragraph (c): added, on 1 April 2010, by section 557(196) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 share paragraph (bb): inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(197) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 share purchase agreement: substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(198) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 share purchase agreement: amended (with effect on 1 April 2008), on 7 December 2009, by section 118(29) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 share reorganisation: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(199) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 shareholder paragraph (c): amended, on 1 April 2008, by section 550(60) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 shareholder agreement: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(200) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 shareholder base: inserted, on 1 July 2010, by section 557(201) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 shareholder base allowable deductions: inserted, on 1 July 2010, by section 557(201) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
3015 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 inserted, on 1 July 2010, by sec- Section YA 1 shareholder base income: tion 557(201) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Section YA 1 shareholder-employee paragraph (b)(ii): amended, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(42) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 shareholder-employee paragraph (c): added, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(42) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 signiﬁcant ﬁnancial hardship: repealed, on 1 April 2011, by section 117(27) of the Taxation (Annual Rates, Trans-Tasman Savings Porta- bility, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 small partnership: inserted, on 1 April 2008, by section 23(13) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YA 1 sound commercial reason: inserted, on 1 April 2008, by section 550(61) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 source in New Zealand: amended, on 21 December 2010, by section 132(43) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 special excluded depreciable property: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 96(7) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Section YA 1 stapled: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(202) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 stapled debt security: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(202) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 starting date: repealed (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 557(203) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 subsidy claim form paragraph (b): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YA 1 subsidy claim form paragraph (f): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YA 1 substituting debenture: amended (with effect on 1 April 2008), on 6 October 2009, by section 557(204) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 superannuation scheme paragraph (ii): repealed, on 1 April 2008, by section 135(7) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section YA 1 supplementary dividend holding company paragraph (e): amended (with effect on 1 July 2011 and applying for income years beginning 3016 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 on or after that date), on 7 May 2012, by section 132(32) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 supporting asset base: inserted, on 1 July 2010, by sec- tion 557(205) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 surrender: substituted (with effect on 1 January 2009), on 6 Oc- tober 2009, by section 557(206) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 surrender value: inserted, on 1 July 2010, by section 557(207) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 systematic, investigative, and experimental activities: inserted, on 1 April 2008, by section 550(62) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 tax charity: inserted, on 1 July 2008, by section 48(5) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section YA 1 tax loss: substituted (with effect on 1 April 2008), on 7 December 2009, by section 118(31) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 tax pooling account: substituted (with effect on 1 April 2009), on 6 October 2009, by section 557(209) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 tax position: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(44) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 tax withheld: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 557(210) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 taxable distribution: amended (with effect on 1 April 2008), on 7 December 2009, by section 118(32) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 taxation law: substituted (with effect on 30 June 2009), on 6 Oc- tober 2009, by section 557(208) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 taxation law: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(33) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YA 1 taxed CFC connection: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(34) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).
Section YA 1 taxed FIF connection: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 132(34) of the Taxation (International Investment and Remedial Mat- ters) Act 2012 (2012 No 34).

3017 Part Y s YA 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 taxi: inserted, on 10 May 2011, by section 100(3) of the Land Transport (Road Safety and Other Matters) Amendment Act 2011 (2011 No 13).
Section YA 1 taxicab: repealed, on 10 May 2011, by section 100(3) of the Land Transport (Road Safety and Other Matters) Amendment Act 2011 (2011 No 13).

Section YA 1 technology: inserted, on 1 April 2008, by section 550(63) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 telecommunications service: inserted (with effect on 30 June 2009), on 6 October 2009, by section 557(211) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 temporary building paragraph (a): repealed, on 1 April 2011 (applying for the 2011–12 and later income years), by section 96(9) of the Tax- ation (Budget Measures) Act 2010 (2010 No 27).
Section YA 1 tertiary institution: repealed, on 1 October 2009, by section 20(7) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section YA 1 timber: substituted (with effect on 1 April 2008), on 7 December 2009, by section 118(33) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 Tokelau International Trust Fund: inserted, on 1 April 2008, by section 550(65) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section YA 1 tracking account: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(212) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 tracking associate: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(213) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 trading stock paragraph (b): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 117(28)(a) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 trading stock paragraph (c): amended (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 117(28)(b) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 trading stock paragraph (c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 557(214)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 trading transaction: inserted (with effect on 1 April 2010), on 7 September 2010, by section 117(29) of the Taxation (Annual Rates, Trans- Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YA 1 transaction shares: inserted (with effect on 1 April 2010), on 7 September 2010, by section 117(29) of the Taxation (Annual Rates, Trans- Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

3018 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 1 Section YA 1 transfer: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(45) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 transfer of value paragraph (b)(ii): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later in- come years), by section 132(46) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YA 1 transitional period: inserted, on 1 April 2008, by section 550(66) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 trust rules paragraph (a): repealed, on 1 April 2011, by sec- tion 117(30) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 turnover: amended, on 1 April 2008, by section 23(14) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YA 1 UFTC: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(215) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 UFTC accounting period: repealed (with effect on 30 June 2009), on 6 October 2009, by section 557(216) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 unwind: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(217) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 unwind: amended (with effect on 1 June 2010), on 7 September 2010, by section 117(31) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
inserted, on 1 July 2010, by sec- Section YA 1 valuation premiums: tion 557(218) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 venture investment agreement: amended, on 1 April 2008, by section 550(67) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 volunteer: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(219) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 WFF tax credit: inserted, on 1 April 2008, by section 550(68) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section YA 1 widely-held GIF: substituted, on 1 April 2010, by sec- tion 557(220) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 widely-held superannuation fund: substituted, on 1 April 2010, by section 557(221) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3019 Part Y s YA 2 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 1 withdrawal: repealed, on 1 April 2011, by section 117(32) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Section YA 1 working owner: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 132(47) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YA 1 work-related relocation: inserted (with effect on 1 April 2008), on 6 October 2009, by section 557(222) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 1 workplace group policy: inserted, on 1 July 2010, by section 118(34) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YA 1 year of payment: repealed, on 1 April 2011, by section 118(35) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 zero-rated investor: added, on 1 April 2010, by section 557(223) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YA 1 zero-rated investor: amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 118(36) of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YA 1 zero-rated portfolio investor: repealed, on 1 April 2010, by section 557(223) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YA 2 Meaning of income tax varied DTA and time bar provisions: ancillary tax The term income tax includes ancillary tax in— (a) (b) (c) section BB 3(2) (Overriding effect of certain matters): section BH 1 (Double tax agreements): sections 107A to 108B of the Tax Administration Act 1994.

DTA provisions: tax recovery agreements The term income tax includes a tax that is prescribed in a tax recovery agreement made under Part 10A of the Tax Admin- istration Act 1994 in— section BB 3(2): (a) section BH 1.
(b) General tax avoidance provisions: ancillary tax The term income tax includes ancillary tax, but not excluded ancillary tax, in— (a) section BB 3(1): (1) (2) (3) 3020 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YA 2 (b) (c) sections BG 1 (Tax avoidance) and GA 1 (Commis- sioner’s power to adjust): the deﬁnition of tax avoidance.
Modiﬁed application of section GA 1 (a) (4) When section GA 1 is applied in the case of an ancillary tax,— the words “taxable income” in section GA 1(2) are treated as replaced by the words “liability to the ancil- lary tax”; and the following paragraph is treated as added to section GA 1(5): “(e) an amount subject to the ancillary tax”.
(b) (5) (6) (7) Tax of other countries The term income tax, when speciﬁcally used in relation to tax of another country, whether imposed by a central, state, or local government,— (a) means a tax of substantially the same nature as income tax imposed under section BB 1 (Imposition of income tax); and includes a tax, imposed as a collection mechanism for the foreign tax, that is of substantially the same na- ture as provisional tax, pay-as-you-earn (PAYE), resi- dent withholding tax (RWT), or non-resident withhold- ing tax (NRWT).
(b) UFTC rules [Repealed] [Repealed] FDP, imputation, and BETA rules The term income tax, in relation to tax that has been paid by a person, includes provisional tax in— the FDP rules: (a) the imputation rules: (b) (c) subpart OE (Branch equivalent tax accounts (BETA)).
Deﬁned in this Act: after-income tax earnings, ancillary tax, BETA, double tax agreement, excluded ancillary tax, FDP rules, ﬁxed-rate share, imputation rules, income tax, NRWT, PAYE, provisional tax, RWT, tax, tax avoidance, taxable income Compare: 2004 No 35 ss HG 12(2), IZ 7, MB 12, ME 9(6), MI 10(5), MI 21(5), MK 8(6), NC 20(1), ND 1W(2), NE 7(2), NF 13, NG 17(2), NH 3(7), OB 6 Section YA 2(5): amended (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 133(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
3021 Part Y s YA 3 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YA 2(6) heading: repealed (with effect on 30 June 2009), on 6 October 2009, pursuant to section 558(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YA 2(6): repealed (with effect on 30 June 2009), on 6 October 2009, by section 558(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YA 3 Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax [Repealed] Section YA 3: repealed (with effect on 1 April 2008), on 6 October 2009, by section 559 of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 (2009 No 34).
Subpart YB—Associated persons and nominees Contents Associated persons Person and trustee for relative YB 1 What this subpart does YB 2 Two companies YB 3 Company and person other than company YB 4 Two relatives YB 5 YB 6 Trustee and beneﬁciary YB 7 Two trustees with common settlor YB 8 Trustee and settlor YB 9 YB 10 Who is a settlor?
YB 11 Trustee and person with power of appointment or removal YB 12 Partnership and partner YB 13 Look-through companies and owners of interests YB 14 Tripartite relationship YB 15 Exceptions for employee trusts YB 16 Exceptions for certain trusts and charitable organisations YB 17 Partnerships: partnership and associate of Settlor and beneﬁciary partner [Repealed] YB 18 Persons habitually acting together: 1988 version provisions [Repealed] YB 19 Person and controlled non-proﬁt organisation: 1990 version provisions [Repealed] 3022 Page 3023 3025 3026 3027 3028 3028 3028 3029 3029 3029 3029 3030 3030 3031 3032 3033 3034 3034 3034 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YB 1 YB 20 Some deﬁnitions [Repealed] YB 21 Transparency of nominees Nominees 3034 3035 Table Y1: Associated person rules [Repealed] Table Y1: repealed, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Associated persons Heading: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

YB 1 What this subpart does (1) (2) (3) Associated person rules and nominee rules This subpart sets out the rules that— (a) (b) deﬁne when 2 persons are associated persons; and determine how nominees are treated.
Other references If a rule in this subpart states that 2 persons are associated persons for 1 or more provisions in this Act, a reference in the relevant provision to persons who are associated with each other includes those persons.
Tests The tests of association are categorised as follows: (a) (b) two companies, see section YB 2: a company and a person other than a company, see sec- tion YB 3: two relatives, see section YB 4: a person and a trustee for a relative, see section YB 5: a trustee and a beneﬁciary, see section YB 6: trustees with a common settlor, see section YB 7: a trustee and a settlor, see section YB 8: a settlor and a beneﬁciary, see section YB 9: (c) (d) (e) (f) (g) (h) 3023 Part Y s YB 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (j) (k) a trustee and a person with a power of appointment or removal, see section YB 11: a partnership and a partner, see section YB 12: two persons who are each associated with the same third person, see section YB 14.
(4) Application The sections in this subpart relating to associated persons apply for the purposes of the whole Act unless a section expressly states otherwise.

Loss-attributing qualifying companies and shareholders (5) A special rule provides that a shareholder in a loss-attributing qualifying company and that LAQC are treated as associated persons for the purposes of section DS 4 (Meaning of ﬁlm reimbursement scheme), see section DS 4(5).
Low-turnover traders (6) A special rule applies for the purposes of subpart EB (Valu- ation of trading stock (including dealer’s livestock)) to deter- mine when a low-turnover trader is associated with a company, see section EB 13(2) (Low-turnover valuation).
Control interests in foreign companies (7) A special rule applies for the purposes of section EX 3 (Con- trol interests: total of direct, indirect, and associated person interests) to determine when a New Zealand resident is asso- ciated with a non-resident relative, see section EX 4(1) (Limits to requirement to include associated person interests).
Supplementary dividend holding companies [Repealed] [Repealed] Deﬁned in this Act: associated person, company, loss-attributing qualifying company, low-turnover trader, New Zealand resident, nominee, non-resident, relative, settlor, shareholder, supplementary dividend holding company, trustee Section YB 1: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YB 1(8) heading: repealed, on 1 April 2011, pursuant to section 119 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YB 1(8): repealed, on 1 April 2011, by section 119 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
(8) 3024 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YB 2 YB 2 Two companies (1) (2) (3) (4) (5) (6) Common voting interests Two companies are associated persons if a group of persons exists whose total voting interests in each company are 50% or more.

Common market value interests Two companies are associated persons if— (a) a market value circumstance exists for either company; and a group of persons exists whose total market value inter- ests in each company are 50% or more.
(b) Common control by other means Two companies are associated persons if a group of persons exists who control both companies by any other means.
General aggregation rule For the purposes of subsections (1) to (3), if a person (person A) and another person (person B) are associated under any of sections YB 4 to YB 14, person A is treated as holding anything held by person B. Aggregation rule for land provisions For the purposes of subsections (1) to (3), if a person (person A) and another person (person B) are associated under any of sections YB 4(1)(b) and (2) to (4), YB 7, YB 8, and YB 10 to YB 14, person A is treated as holding anything held by person B.
Exception for certain government entities Subsection (3) does not apply to 2 companies if either or both are— (a) (b) (c) (d) a state enterprise: a Crown Research Institute: a Crown health enterprise: a company that is part of the same group of companies as an entity referred to in any of paragraphs (a) to (c).

(7) Exception for international tax rules In the international tax rules, 2 companies are not associated persons if 1, but not both, is a non-resident.
3025 Part Y s YB 3 Income Tax Act 2007 Reprinted as at 29 May 2012 (8) Exception for managed funds For the purposes of the land provisions, 2 companies are not associated persons if 1 is a portfolio investment entity or an entity that qualiﬁes for PIE status.
Deﬁned in this Act: associated person, company, Crown Research Institute, group of companies, group of persons, international tax rules, land provisions, market value circumstance, market value interest, non-resident, PIE, portfolio investment entity, state enterprise, voting interest Section YB 2: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 3 Company and person other than company Company and 25% voting interest holder (1) A company and a person other than a company are associated persons if the person has a voting interest in the company of 25% or more.

Company and 25% market value interest holder (2) A company and a person other than a company are associated persons if— (a) (b) a market value circumstance exists for the company; and the person has a market value interest in the company of 25% or more.
General aggregation rule For the purposes of subsections (1) and (2), if a person (person A) and another person (person B) are associated under any of sections YB 4 to YB 14, person A is treated as holding anything held by person B. Aggregation rule for land provisions For the purposes of subsections (1) and (2), if a person (person A) and another person (person B) are associated under any of sections YB 4(1)(b) and (2) to (4), YB 7, YB 8, and YB 10 to YB 14, person A is treated as holding anything held by person B.
(3) (4) 3026 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YB 4 (5) Person other than company In this section, a person other than a company includes a com- pany acting in its capacity as a trustee of a trust.
Deﬁned in this Act: associated person, company, land provisions, market value circumstance, market value interest, voting interest Section YB 3: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 4 Two relatives (1) (2) (3) Degree of relationship Two persons are associated persons if — (a) (b) they are within 2 degrees of blood relationship: they are married, in a civil union, or in a de facto rela- tionship: 1 person is within 2 degrees of blood relationship to the other person’s spouse, civil union partner, or de facto partner.
(c) Exception: blood relationships For the purposes of the land provisions and sections EB 13 (Low turnover valuation) and EC 5 (Transfer of livestock be- cause of self-assessed adverse event), subsection (1)(a) and (c) does not apply, and persons are associated persons because of a blood relationship only if 1 is the infant child of the other.
Treatment of adoption For the purposes of this section, a child by adoption is treated as a natural child of the adoptive parents and not as a natural child of the birth parents.

Exception (4) A person is not associated with another person under this section if the person cannot reasonably be expected to know that— (a) (b) the other person exists: the person is within 2 degrees of blood relationship to the other person.
Deﬁned in this Act: associated person, land provisions Section YB 4: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3027 Part Y s YB 5 Income Tax Act 2007 Reprinted as at 29 May 2012 YB 5 Person and trustee for relative (1) (2) Association Two persons (person A and person B) are associated persons if person A is the trustee of a trust under which a person as- sociated under section YB 4 with person B has beneﬁted or is eligible to beneﬁt.

Land provisions This section does not apply for the purposes of the land provi- sions.
Deﬁned in this Act: associated person, land provisions, trustee Section YB 5: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

YB 6 Trustee and beneﬁciary Association (1) A trustee of a trust and a person who has beneﬁted or is eligible to beneﬁt under the trust are associated persons.

(2) Land provisions This section does not apply for the purposes of the land provi- sions.
Deﬁned in this Act: associated person, land provisions Section YB 6: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

YB 7 Two trustees with common settlor Association (1) A trustee of a trust and a trustee of another trust are associated persons if the same person is a settlor of both trusts.
Treatment of spouses and partners For the purposes of this section, 2 persons who are married, in a civil union, or in a de facto relationship are treated as the same single person.

Deﬁned in this Act: associated person, settlor, trustee Section YB 7: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(2) 3028 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YB 11 YB 8 Trustee and settlor Association (1) A trustee of a trust and a settlor of the trust are associated persons.

(2) Exclusion This section does not apply if the trust is a charitable trust.

Deﬁned in this Act: associated person, charitable trust, settlor, trustee Section YB 8: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 9 Settlor and beneﬁciary Association (1) A settlor of a trust and a person who has beneﬁted or is eligible to beneﬁt under the trust are associated persons.

(2) Land provisions This section does not apply for the purposes of the land provi- sions.

Deﬁned in this Act: associated person, land provisions, settlor, trustee Section YB 9: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 10 Who is a settlor?

For the purposes of sections YB 7 to YB 9, settlor has the meaning set out in section HC 27 (Who is a settlor?)

but does not include a person who provides services to a trust for less than market value.

Deﬁned in this Act: settlor Section YB 10: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 11 Trustee and person with power of appointment or removal A trustee of a trust and a person who has a power of appoint- ment or of removal of the trustee are associated persons.

Deﬁned in this Act: associated person, trustee 3029 Part Y s YB 12 Income Tax Act 2007 Reprinted as at 29 May 2012 Section YB 11: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 12 Partnership and partner Association (1) A partnership and a partner in the partnership are associated persons.

(2) (3) (4) Limited partnerships Subsection (1) does not apply if the partner is a limited partner.

Instead a limited partnership and a limited partner are associ- ated persons if the limited partner has a partnership share of 25% or more in a right, obligation, or other property, status, or thing of the limited partnership.
Limited partnerships: general aggregation rule For the purposes of subsection (2), if a person (person A) and another person (person B) are associated under any of sections YB 2 to YB 11 and YB 14, person A is treated as holding anything held by person B.
Limited partnerships: aggregation rule for land provisions For the purposes of subsection (2), if a person (person A) and another person (person B) are associated under any of sections YB 2, YB 3, YB 4(1)(b) and (2) to (4), YB 7, YB 8, YB 10, YB 11, and YB 14, person A is treated as holding anything held by person B. Deﬁned in this Act: associated person, limited partner, limited partnership, part- nership, share Section YB 12: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 13 Look-through companies and owners of interests Association (1) A look-through company and a person who has a look-through interest for the look-through company (an owner) and who is a director or employee for the look-through company are associated persons.
3030 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YB 14 (2) (3) (4) Some owners If subsection (1) does not apply to a look-through company and an owner, then they are associated persons if the owner has ef- fective look-through interests of 25% or more in a right, obli- gation, or other property status, or thing of the look-through company.
Some owners: general aggregation rule For the purposes of subsection (2), if a person (person A) and another person (person B) are associated under any of sections YB 2 to YB 11 and YB 14, person A is treated as holding anything held by person B.
Some owners: aggregation rule for land provisions For the purposes of subsection (2), if a person (person A) and another person (person B) are associated under any of sections YB 2, YB 3, YB 4(1)(b) and (2) to (4), YB 7, YB 8, YB 10, YB 11, and YB 14, person A is treated as holding anything held by person B. Deﬁned in this Act: associated person, director, effective look-through interest, employee, look-through company, look-through interest Section YB 13: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 134(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
YB 14 Tripartite relationship (1) (2) Test Two persons (person A and person B) are associated persons if— (a) person B is associated with a third person (person C) under any of sections YB 2 to YB 13; and person C is associated with person A under any of sec- tions YB 2 to YB 13, excluding the section under which person B is associated with person C. (b) Exception: companies tests Subsection (1) does not apply if— (a) person B is associated with person C under section YB 2; and person C is associated with person A under section YB 3.
(b) 3031 Part Y s YB 15 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) Association for purposes of research and development tax credits Subsection (1) does not apply in relation to the association of a company and a person, for the purposes of section LH 1(2) (Who this subpart applies to).
Deﬁned in this Act: associated person, company, tax credit Section YB 14: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YB 14(1)(a): amended, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 135(1)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Section YB 14(1)(a): amended, on 1 April 2010, by section 120 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YB 14(1)(b): amended, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 135(1)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section YB 14(1)(b): amended, on 1 April 2010, by section 120 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
YB 15 Exceptions for employee trusts Beneﬁciaries Section YB 6(1) does not apply if— (a) the trust is only for the beneﬁt of employees of an em- ployer; and neither the beneﬁciary nor any person associated with the beneﬁciary directly or indirectly controls the trust.
(b) Non-corporate settlors For a settlor that is not a company, sections YB 7, YB 8, and YB 9(1) do not apply if— (a) the settlor settles property on the terms of the trust only for the beneﬁt of employees of the settlor; and neither the settlor nor any person associated with the settlor directly or indirectly controls the trust.
(b) Corporate settlors For a settlor that is a company, sections YB 7, YB 8, and YB 9(1) do not apply if— (a) the settlor settles property on the terms of the trust only for the beneﬁt of its employees; and (1) (2) (3) 3032 Reprinted as at 29 May 2012 (b) Income Tax Act 2007 Part Y s YB 16 none of the following directly or indirectly controls the trust: (i) (ii) (iii) (iv) (v) the settlor: a person associated with the settlor: an executive of the settlor: a director of the settlor: a person holding a direct voting interest of 25% or more in the settlor: if a market value circumstance exists for the set- tlor, a person holding a direct market value inter- est of 25% or more in the settlor.
(vi) (4) Persons with power of appointment or removal Section YB 11 does not apply if— (a) (b) the trust is only for the beneﬁt of employees of an em- ployer; and neither the person (person A) who has a power of ap- pointment or of removal of a trustee nor a person asso- ciated with person A directly or indirectly controls the trust.
Deﬁned in this Act: associated person, company, direct voting interest, em- ployee, employer, market value circumstance, market value interest, settlor Section YB 15: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 16 Exceptions for certain trusts and charitable organisations (1) Trustee and beneﬁciary and trustee for relative tests: certain trusts Sections YB 5 and YB 6(1) do not apply to a trustee and an- other person if the trust is— (a) a lines trust established under the Energy Companies Act 1992: an approved unit trust referred to in clause 2 of the In- come Tax Act (Exempt Unit Trusts) Order 1990.
(b) 3033 Part Y s YB 17 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) Trustee and beneﬁciary and settlor and beneﬁciary tests: charitable organisation Sections YB 6(1) and YB 9(1) do not apply to a trustee and a beneﬁciary or a settlor and a beneﬁciary if the beneﬁciary is a charitable organisation.
Deﬁned in this Act: charitable organisation, lines trust, unit trust Section YB 16: substituted, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

YB 17 Partnerships: partnership and associate of partner [Repealed] Section YB 17: repealed, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 18 Persons habitually acting together: 1988 version provisions [Repealed] Section YB 18: repealed, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

YB 19 Person and controlled non-proﬁt organisation: 1990 version provisions [Repealed] Section YB 19: repealed, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YB 20 Some deﬁnitions [Repealed] Section YB 20: repealed, on 1 April 2010, by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3034 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YB 21 YB 21 Transparency of nominees Nominees (1) Treatment of nominee In this Act, unless the context otherwise requires, if a person holds something or does something as a nominee for another person, the other person holds or does that thing and the nom- inee is ignored.

Who is a nominee?

(2) A person holds or does something as a nominee for another person if the person acts on the other person’s behalf.
How- ever, a trustee is a nominee only if the trustee is a bare trustee.

Nominal settlements (3) A person making a nominal settlement at the request of another person is treated for the purposes of this Act as a nominee in relation to the settlement.

Deﬁned in this Act: trustee Compare: 2004 No 35 ss HH 1(1), OD 9 Section YB 21(3) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 121(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section YB 21(3): added (with effect on 1 April 2008), on 7 December 2009, by section 121(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section YB 21 compare note: amended (with effect on 1 April 2008), on 6 October 2009, by section 564 of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Subpart YC—Measurement of company ownership Subpart YC heading: substituted, on 1 April 2010, by section 565 of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Contents Control [Repealed] YC 1 Meaning of control [Repealed] Page 3036 3035 Part Y s YC 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Voting and market value interests YC 2 Voting interests YC 3 Market value interests YC 4 Look-through rule for corporate shareholders YC 5 Treatment of special corporate entities YC 6 Disregarding certain securities Voting and market value interests: modiﬁcations for continuity provisions Shares or options held by trustees YC 7 When sections YC 8 to YC 19 apply YC 8 Death of share or option holder YC 9 YC 10 Shareholders holding less than 10% direct interests YC 11 No look-through rule for companies in certain cases YC 12 Public unit trusts YC 13 Corporate spin-outs YC 14 Disregarding concessionary rules YC 15 Directors’ knowledge of failure to meet requirements of continuity provision YC 16 Disregarding market value changes YC 17 Demutualisation of insurers YC 18 Reverse takeovers YC 18B Corporate reorganisations not affecting economic ownership YC 19 Legislative conversion of foreign company of proprietors YC 20 Credit account continuity provisions: excluded ﬁxed rate securities 3037 3037 3037 3039 3040 3041 3041 3041 3042 3043 3044 3045 3047 3048 3049 3050 3053 3056 3058 3058 Control [Repealed] Heading: repealed, on 1 April 2010 (applying for the 2010–11 and later income years), by section 566(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YC 1 Meaning of control [Repealed] Section YC 1: repealed, on 1 April 2010 (applying for the 2010–11 and later income years), by section 566(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3036 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 4 Voting and market value interests YC 2 Voting interests Percentage of shareholder decision-making rights (1) A person’s voting interest in a company equals the percentage of the total shareholder decision-making rights for the com- pany carried by shares or options held by the person.
When decision-making rights vary (2) Despite subsection (1), if the percentage of shareholder de- cision-making rights for a company carried by shares or op- tions held by any person differs as between the types of de- cision-making listed in the deﬁnition of shareholder deci- sion-making right, the person’s voting interest in the com- pany equals the average of those differing percentages.
Deﬁned in this Act: company, share, shareholder decision-making right, voting interest Compare: 2004 No 35 s OD 3(1), (2) YC 3 Market value interests Percentage of market value (1) A person’s market value interest in a company equals the per- centage of the total market value of shares and options over shares in the company that the market value of shares and op- tions over shares in the company held by the person represents.
(2) Adjustments for options For the purposes of subsection (1), the market value of any share in a company that is subject to an option is calculated having regard to the terms of the option.
Deﬁned in this Act: company, market value, market value interest, option, share Compare: 2004 No 35 s OD 4(1), (2) YC 4 Look-through rule for corporate shareholders (1) When subsection (2) applies Subsection (2) applies if a company (the shareholder com- pany) is or is treated as having, whether under subsection (2) or otherwise, a voting interest in another company (the issuing company).
3037 Part Y s YC 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) (4) (5) (6) (7) Voting interest attributed to shareholders Each person (the shareholder) who has a voting interest in the shareholder company is treated as having (to be added to any other percentage voting interest in the issuing com- pany which the shareholder has) their portion of the share- holder company’s voting interest in the issuing company and the shareholder company is treated as not having that portion.
Calculation of shareholder’s portion The shareholder’s portion of the voting interest is calculated by multiplying the shareholder company’s voting interest in the issuing company by the shareholder’s voting interest in the shareholder company.

When subsection (5) applies Subsection (5) applies if a company (the shareholder com- pany) is or is treated as having, whether under subsection (5) or otherwise, a market value interest in another company (the issuing company).
Attributing market value interest to shareholders Each person (the shareholder) who has a market value interest in the shareholder company is treated as having their portion of the shareholder company’s market value interest in the issuing company and the shareholder company is treated as not having that portion.

The shareholder’s portion is added to any other percentage market value interest in the issuing company which the shareholder has at that time.
Calculation of shareholder’s portion The shareholder’s portion of the market value interest is calcu- lated by multiplying the shareholder company’s market value interest in the issuing company by the shareholder’s market value interest in the shareholder company.
When subsection (8) applies Subsection (8) applies if,— (a) in the case of a company (the ﬁrst company), no direct market value circumstance exists; but it is necessary to determine the direct market value inter- est of a person in the ﬁrst company in order to apply sub- section (5) in relation to an issuing company, whether that issuing company is the ﬁrst company or any other (b) 3038 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 5 (8) company, because a direct market value circumstance exists for some other relevant company.
Direct market value interest equal to direct voting interest The direct market value interest of the person in the ﬁrst com- pany is equal to the direct voting interest of the person in the ﬁrst company.
Deﬁned in this Act: company, direct market value circumstance, direct market value interest, direct voting interest, director, market value interest, voting in- terest Compare: 2004 No 35 ss OD 3(3)(d), OD 4(3)(d), (4) Section YC 4 compare note: amended (with effect on 1 April 2008), on 6 Octo- ber 2009, by section 567 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YC 5 Treatment of special corporate entities (1) (2) (3) (4) When this section applies This section applies for the purposes of sections YC 2 to YC 6 to a company that is a special corporate entity.

Company treated as issuing shares If no shares have been issued by the special corporate entity, it is treated as having issued shares that carry all shareholder decision-making rights and all other rights of ownership in relation to the special corporate entity.

Who is treated as shareholder?


The shares are treated as held by— (a) (b) (c) the members for the time being of the special corporate entity, if any: the directors for the time being of the special corporate entity, if no members exist: in the case of a public authority or state enterprise that has neither members nor directors, the Minister of the Crown for the time being who performs a director’s functions.
Persons also treated as holding related rights The persons treated under subsection (3) as holding the shares are also treated as holding— (a) (b) any options over the shares; and any rights derived from the shares and options, includ- ing any interests treated as held under section YC 4.
3039 Part Y s YC 6 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) Shareholders treated as notional single person existing with entity The members, directors, or Ministers are treated as holding their shares and related rights— (a) in their capacity as members, directors, or Ministers; and as a notional single person that— (i) (b) exists as long as the special corporate entity exists; and holds nothing other than shares and related rights concerning the entity.
(ii) Deﬁned in this Act: company, director, public authority, share, special corpo- rate entity, state enterprise Compare: 2004 No 35 ss OD 3(3)(a), OD 4(3)(a) YC 6 Disregarding certain securities When this section applies This section applies for the purposes of sections YC 2 to YC 5 if— (a) (b) a company has issued an excluded ﬁxed rate security: an excluded option has been granted in relation to a share in a company: a company has issued a pre-1991 budget security.
(c) Security treated as not issued or granted The excluded ﬁxed rate security, excluded option, or pre-1991 budget security is treated as never having been issued or granted.

Holder treated as not holding security The holder of the excluded ﬁxed rate security, excluded option, or pre-1991 budget security is treated as never having held it.

Credit account continuity provisions: excluded ﬁxed return securities counted This section is overridden by section YC 20.
Deﬁned in this Act: company, excluded ﬁxed rate security, excluded option, pre-1991 budget security, share Compare: 2004 No 35 ss OD 3(3)(c), OD 4(3)(c) Section YC 6(4): amended (with effect on 1 April 2008), on 6 October 2009, by section 568(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
(1) (2) (3) (4) 3040 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 9 Voting and market value interests: modiﬁcations for continuity provisions YC 7 When sections YC 8 to YC 19 apply Sections YC 8 to YC 19 apply to modify sections YC 2 to YC 6 when the continuity provisions are applied.
Deﬁned in this Act: continuity provisions Compare: 2004 No 35 s OD 5(1) YC 8 Death of share or option holder If a person acquires a share or option over a share on the death of a person (the deceased person), as a beneﬁciary or trustee under the will or intestacy, the person is treated as— (a) having acquired the share or option on the date the de- ceased person acquired it; and having held it until the person in fact acquired it.
(b) Deﬁned in this Act: company, share, trustee Compare: 2004 No 35 s OD 5(2) YC 9 Shares or options held by trustees Trustees treated as notional single person (1) All the trustees of a trust holding a share or an option over a share in a company under the trust are treated as the same notional single person that is— not a company; and (a) separate and distinct from the trustees in their capacities (b) other than as trustees of the trust.
(2) (3) Exception to subsection (1) Subsection (1) does not apply if any of the following has a purpose or effect of defeating the intent and application of a continuity provision: (a) (b) (c) the establishment of the trust: the termination of the trust: a change in the trustees of the trust.
Change in ownership of corporate trustee Subsection (4) applies if— (a) any share in a company (the ﬁrst company) or option over a share in the ﬁrst company is held by a trustee; and 3041 Part Y s YC 10 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) (d) the trustee is a company other than— (i) (ii) Public Trust: any company in which Public Trust holds all vot- ing and market value interests: a statutory trustee company; and (iii) any share in the trustee or option over a share in the trustee is disposed of, issued, or granted; and to the extent to which the disposal, issue, or grant changes the beneﬁcial ownership of the share or option over a share in the ﬁrst company, unless it can be shown not to have a purpose or effect of defeating the intent and application of any of the continuity provisions.
(4) (5) Trustee treated as disposing of share or option The trustee is treated as having disposed of the share or option in the ﬁrst company, at the time of the disposal, issue, or grant, to an unrelated person and having immediately reacquired the share or option.

Avoidance Section GB 5 (Arrangements involving trust beneﬁciaries) may apply to treat a share or option held by a trustee as being disposed of at the time of a change in trust beneﬁciaries.
Deﬁned in this Act: company, continuity provision, market value interest, share, statutory trustee company, trustee, voting interest Compare: 2004 No 35 s OD 5(3), (4) YC 10 Shareholders holding less than 10% direct interests When this section applies This section applies when— (a) a person has a direct voting interest or direct market value interest of less than 10% in a company (the issu- ing company), calculated before section YC 4, as modi- ﬁed by section YC 11, is applied: the person is not a company that is associated with the issuing company.
(b) Person’s interest treated as held by notional single person The person’s direct voting or market value interest is treated as held by a notional single person that— (a) is not a company; and (1) (2) 3042 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 11 (b) (c) (d) exists as long as the issuing company exists; and holds all interests in the issuing company to which this section applies; and holds nothing other than voting or market value interests in the company.
(3) Overriding look-through rule for corporate shareholders This section overrides section YC 4.
Deﬁned in this Act: associated person, company, direct market value interest, direct voting interest, market value interest, shareholder, voting interest Compare: 2004 No 35 s OD 5(5) YC 11 No look-through rule for companies in certain cases (1) (2) When this section applies This section applies when a company (the shareholder com- pany) has, before section YC 4 is applied to that interest, a vot- ing interest or market value interest in another company (the issuing company) and either subsection (2) or (3) applies.
First case: limited attribution company holding less than 50% The shareholder company— (a) (b) is a limited attribution company; and the voting interest or market value interest, when added to any interests which the shareholder company is treated as having under section YC 4, as modiﬁed by this section and section YC 10, is less than 50%.
Second case: shareholder not associated and would be attributed less than 10% (3) A person (the shareholder), who holds a voting or market value interest in the shareholder company, to whom the rele- vant portion of the voting interest or market value interest in the issuing company would be attributed under section YC 4, assuming section YC 10 does not then apply to the portion,— is not associated with the issuing company; and (a) the relevant portion, before adding any other voting or (b) market value interest which the shareholder has or is treated as having, is less than 10%.
3043 Part Y s YC 12 Income Tax Act 2007 Reprinted as at 29 May 2012 (4) Overriding look-through rule Section YC 4 does not apply to the voting or market value interest of the shareholder company.
Deﬁned in this Act: associated person, company, co-operative company, double tax agreement, limited attribution company, market value interest, shareholder, voting interest Compare: 2004 No 35 s OD 5(6) Section YC 11(3): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 131(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
YC 12 Public unit trusts When this section applies This section applies in relation to a public unit trust if the pub- lic unit trust chooses to apply it.

Unit holders treated as notional single person The unit holders’ shares in the unit trust are treated as held by a notional single person that— (a) (b) (c) is not a company; and exists as long as the unit trust exists; and holds nothing other than the shares in the unit trust.
Treatment of balances carried forward into 2001–02 tax year Subsection (4) applies if— (a) a public unit trust exists on the ﬁrst day of the 2001–02 tax year; and the public unit trust chose to apply section OD 5(5B) of the Income Tax Act 1994 from the ﬁrst day of the tax year.
(b) Notional single person treated as always existing The notional single person is treated as having accumulated and as having always existed in relation to the balances, at the start of the 2001–02 tax year, of the unit trust’s— (a) (b) (c) Deﬁned in this Act: company, FDP account, imputation credit account, loss balance, public unit trust, share, shareholder, tax year, unit trust Compare: 2004 No 35 s OD 4(5A)–(5C) imputation credit account: foreign dividend payment (FDP) account: loss balances.
(1) (2) (3) (4) 3044 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 13 YC 13 Corporate spin-outs (1) (2) When this section applies This section applies if— (a) a share in a company (the spun-out company) is trans- ferred or issued to a shareholder in another company (the original parent); and before the transfer or issue, the original parent is treated, under section YC 11(3), as holding a voting interest or market value interest in another company (the spun-out subsidiary); and before the transfer or issue, the original parent is treated as holding an interest in the spun-out company that is a voting interest of more than 50% or, if a market value circumstance exists, a market value interest of more than 50%, both calculated as if section YC 4 did not apply to treat the original parent’s interests in the spun-out company as being held by others; and at the time of the transfer or issue, the original parent is a limited attribution company; and after the transfer or issue, the spun-out company is treated under section YC 11(3) as holding the voting interest or market value interest in the spun-out sub- sidiary; and after the transfer or issue, the spun-out company is, at all times during the relevant period described in subsection (3), a limited attribution company.
(b) (c) (d) (e) (f) Overriding look-through rule for spun-out company Section YC 4 is overridden and the spun-out company is treated as holding the voting interest or market value interest in the spun-out subsidiary— (a) for the period before the transfer or issue that the ori- ginal parent was treated as holding the interest; and for the purposes of applying the continuity provisions from the date of the transfer or issue; and to the extent to which, immediately after the transfer or issue, a group of persons exists who hold common interests in the original parent and the spun-out com- pany, calculated on the assumption that the only voting interests and market value interests in those companies (b) (c) 3045 Part Y s YC 13 Income Tax Act 2007 Reprinted as at 29 May 2012 are those treated as held by those companies under sec- tion YC 11(3).
Meaning of relevant period In subsection (1)(f), relevant period means— (a) in relation to the offset of a loss under Part I (Treatment of tax losses), the period from the date of the transfer or issue until the last day of the period in which the loss is offset: in relation to a credit subject to a continuity provision, the period from the date of the transfer or issue until the date the credit is cancelled by a subsequent debit.
Meaning of common interest In subsection (2)(c), common interest means— (a) if a market value circumstance does not exist for the original parent or the spun-out company, the common voting interest described in subsection (5): if a market value circumstance exists for the original parent but not the spun-out company, the lower of— (i) the common voting interest described in subsec- tion (5); and the market value interest in the original parent: (ii) if a market value circumstance exists for the spun-out company but not the original parent, the lower of— (i) the common voting interest described in subsec- tion (5); and the market value interest in the spun-out com- pany: (ii) if a market value circumstance exists for the original parent and the spun-out company, the lower of the com- mon voting interest described in subsection (5) and the common market value interest described in subsection (6).
(b) (b) (c) (d) Meaning of common voting interest In subsection (4), common voting interest, for a person in relation to the original parent and the spun-out company, means— (a) the percentage voting interest of the person in each com- pany, if the percentages are the same: (3) (4) (5) 3046 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 14 (b) the lower of the percentage voting interests of the person in the companies, if the percentages differ.
(6) (7) Meaning of common market value interest In subsection (4), common market value interest, for a per- son in relation to the original parent and the spun-out company, means— (a) the percentage market value interest of the person in each company, if the percentages are the same: the lower of the percentage market value interests of the person in the companies, if the percentages differ.
(b) Common interests: look-through rules partially overridden For the purposes of measuring common interests, neither sec- tion YB 21 (Transparency of nominees) nor YC 4 apply to treat a nominee’s or company’s voting interest or market value interest in the original parent or the spun-out company to be held by another person, if the interest the other person would be treated as holding would be less than 10%.
Deﬁned in this Act: common interest, common market value interest, common voting interest, company, continuity provision, group of persons, limited at- tribution company, market value circumstance, market value interest, relevant period, share, shareholder, voting interest Compare: 2004 No 35 s OD 5(6A)–(6F) Section YC 13(1)(c): substituted (with effect on 1 May 2011), on 29 August 2011, by section 132 of the Taxation (Tax Administration and Remedial Mat- ters) Act 2011 (2011 No 63).
YC 14 Disregarding concessionary rules When this section applies (1) As the provisions of sections YC 10 to YC 13 are intended to have concessionary effect, subsection (2) applies if— (a) at a time, for a company and a continuity provision, the requirements of the provision are not met; but the requirements would have been met but for the appli- cation to a particular extent of sections YC 10 to YC 13.
(b) (2) Requirements of continuity provision treated as met The requirements of the continuity provision are treated as met at the time.
Deﬁned in this Act: company, continuity provision Compare: 2004 No 35 s OD 5(7) 3047 Part Y s YC 15 Income Tax Act 2007 Reprinted as at 29 May 2012 YC 15 Directors’ knowledge of failure to meet requirements of continuity provision When this section applies This section applies if— (a) (b) for a company at a time, the requirements of a continuity provision would not have been met but for the applica- tion of section YC 10, YC 11, or both; and the failure, but for that concessionary application, to meet the requirements would have occurred in the ab- sence of transactions of the following types: (i) (ii) (iii) (iv) (v) the sale of shares in a company in the ordinary course of trading on a recognised exchange be- tween less than 10% holders: the cancellation of shares in a unit trust, that falls within paragraph (a), (b), or (c) of the deﬁnition of widely-held trust, held by less than 10% hold- ers: the cancellation of shares in a unit trust, that falls within paragraph (a), (b), or (c) of the deﬁnition of widely-held trust, which were acquired from less than 10% holders by the manager or trustee of the unit trust in the ordinary course of their activities in relation to the unit trust: the transfer of shares in a company other than in the ordinary course of trading on a recognised ex- change between persons, each of which is not a company associated with the company and has a direct voting interest or direct market value in- terest of less than 5%, calculated before the ap- plication of section YC 4 as modiﬁed by section YC 11: the issue, redemption, or cancellation by a com- pany, or the transfer to or from the company, or the transfer to an employee of the company from a trustee of a trust with no beneﬁciary other than the company and the company’s employees, of shares in the company, or options over shares in the company, that in total for the company’s in- come year would be a direct voting interest or di- (1) 3048 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 16 (2) (3) (c) rect market value
 interest of less than 5% if held by a single person; and the directors of the company know or could reasonably be expected to know, without making enquiries specif- ically for the purposes of applying the continuity provi- sions, that the requirements of the continuity provision would not have been met but for that concessionary ap- plication.
Requirements of continuity provision treated as not met The requirements of the continuity provision are treated as not met at the time.

Meaning of less than 10% holder In this section, less than 10% holder means a person whose direct voting interest or direct market value interest is, at all relevant times, an interest to which section YC 10 applies.
Deﬁned in this Act: company, continuity provision, director, less than 10% holder, recognised exchange, share, trustee, unit trust, widely-held trust Compare: 2004 No 35 s OD 5(8) Section YC 15(1)(b): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 133(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YC 15(1)(b)(iii): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 133(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YC 15(1)(b)(iv): added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 133(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YC 15(1)(b)(iv): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 133(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section YC 15(1)(b)(v): added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 133(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Section YC 15(1)(b)(v): substituted (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 133(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
YC 16 Disregarding market value changes When this section applies This section applies if— (1) 3049 Part Y s YC 17 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) (c) for a company at a time, the requirements of a continuity provision are not met; and the requirements would have been met but for a change in the market value interest of 1 or more persons; and the change is solely attributable to— (i) a change in the market value of the tangible and intangible assets of the company: a change in the market value of any 1 or more shares in the company that is not attributable to any change in the terms of those shares: a combination of those factors.
(ii) (iii) (2) Requirements of continuity provision treated as met The requirements of the continuity provision are treated as met at the time.

Deﬁned in this Act: company, continuity provision, market value, market value interest, share Compare: 2004 No 35 s OD 5(9) YC 17 Demutualisation of insurers (1) (2) When this section applies This section applies if an insurer stops being a special corpo- rate entity as a result of demutualisation.
Former member acquiring voting or market value interest Subsection (3) applies if— (a) a person acquires a voting interest or a market value in- terest in an insurer on the demutualisation of the insurer; and immediately before the demutualisation, the person was a member of the insurer; and the interest is acquired solely as a result of that mem- bership.
(b) (c) When person treated as holding interest (3) With effect from the date of the acquisition but subject to sec- tion YC 10, the person is treated as having held the voting interest or market value interest at all times during the period in which the insurer was a special corporate entity.
3050 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 17 Trustee for former member acquiring voting or market value interest Subsection (5) applies if— (a) (4) a person acquires a voting interest or a market value interest in a life insurer on the demutualisation of the life insurer; and the person is the trustee of a trust for the beneﬁt of per- sons who were members of the life insurer immediately before the demutualisation; and the trust was established before the demutualisation process— (i) as an interim holding vehicle pending distribu- tion to the members of all shares held by the trust: to exercise voting rights on behalf of the mem- bers in relation to any holding company estab- lished before the demutualisation process which holds all the shares in the life insurer; and the Commissioner considers that the trust falls within paragraphs (b) and (c), and has notiﬁed the trustee.
(ii) (b) (c) (d) When trustee treated as holding interest (5) With effect from the date of the acquisition, the trustee is treated as having held the voting interest or market value inter- est at all times during the period in which the life insurer was a special corporate entity.
(6) Application of section YC 10 to interests of former members Subsection (7) applies if— (a) (b) subsection (5) applies; and the notional single person referred to in section YC 10 acquires a voting interest or market value interest in the life insurer on— (i) the distribution by the trustee of the shares from the trust: (ii) the issue of shares by the holding company; and the person referred to in section YC 10(1), whose direct voting interest or direct market value interest is treated under section YC 10 as that of the notional single person resulting in the notional single person’s interest in the life insurer,— (c) 3051 Part Y s YC 17 Income Tax Act 2007 Reprinted as at 29 May 2012 (i) (ii) was a member of the life insurer immediately before the demutualisation, or is a trustee of a trust for the members; and acquired the direct voting interest or direct mar- ket value interest as a result of the membership.
When notional single person treated as holding interest (7) With effect from the date of the acquisition, the notional single person is treated as having existed and having held the voting interest or market value interest at all times during— (a) the period in which the life insurer was a special corpo- rate entity; and the period of the trust before the acquisition by the no- tional single person.
(b) (8) Community trust acquiring voting or market value interest Subsection (9) applies if— (a) a person acquires a voting interest or a market value interest in an insurer on and solely as a result of the demutualisation of the insurer; and the person is the trustee of a community trust for the beneﬁt of some or all of a community which generally includes persons who were members of the insurer im- mediately before the demutualisation; and the Commissioner considers that the trust falls within paragraph (b) and has notiﬁed the trustee.
(b) (c) When trustee treated as holding interest (9) With effect from the date of the acquisition, the trustee is treated as having held the voting interest or market value in- terest at all times during the period in which the insurer was a special corporate entity.
Net losses of years before 1992–93 (10) Subsection (11) applies if— (a) (b) (c) an insurer undergoes demutualisation; and the insurer, or another company that is part of the same group of companies (the loss company), had a net loss in a tax year before the 1992–93 tax year; and the loss company carried the loss forward to the 1992–93 tax year under the Income Tax Act 1976; and 3052 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 18 (d) the loss has not been offset against net income for any period before demutualisation.
Net loss treated as for 1992–93 tax year (11) Despite section IZ 5 (Companies’ tax losses for tax years be- fore 1991–92 tax year) for the purposes of Part I (Treatment of tax losses), with effect from the date on which the insurer stops being a special corporate entity on the demutualisation, the loss is treated as having arisen on the ﬁrst day of the loss company’s 1992–93 tax year and not to have arisen in the ear- lier tax year.
Credit account credits arising before 1 April 2002 (12) Subsection (13) applies if— (a) (b) an insurer undergoes demutualisation; and the insurer or another company that is part of the same group of companies has, at the time of the commence- ment of the process of demutualisation, a credit that arose before 1 April 1992 in— (i) (ii) (iii) its imputation credit account: its FDP account: its branch equivalent tax account.
Credit treated as arising on 1 April 1992 (13) Despite section OZ 4 (Terminating modiﬁcations to debits for loss of shareholder continuity), for the purposes of Part O (Memorandum accounts), with effect from the date on which the insurer stops being a special corporate entity on the de- mutualisation, the credit is treated as having ﬁrst arisen in the account on 1 April 1992 and not when it actually arose.
Deﬁned in this Act: branch equivalent tax account, community trust, company, direct market value interest, direct voting interest, FDP account, imputation credit account, insurer, life insurer, market value interest, net income, net loss, share, special corporate entity, tax year, trustee, voting interest Compare: 2004 No 35 s OD 5A YC 18 Reverse takeovers (1) When subsections (2) and (3) apply Subsections (2) and (3) apply if— (a) a limited attribution company (the initial parent) is treated under section YC 11(3) as holding all ownership interests in another company (the subsidiary); and 3053 Part Y s YC 18 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) (c) (d) (e) a change in the ownership of the initial parent occurs, or the initial parent ends its existence on an amalgamation (the changeover); and immediately after the changeover, another limited attri- bution company (the new parent) is treated under sec- tion YC 11(3) as holding all ownership interests in the subsidiary; and immediately after the changeover, all or part of the ownership interests in the new parent are treated under section YC 11(3) as being held by persons (the ini- tial owners) who were treated as holding ownership interests in the initial parent immediately before the changeover; and in the case of each initial owner, the percentage own- ership interest in the initial parent that the initial owner holds immediately before the changeover is the same as the percentage ownership interest in the new par- ent that the initial owner holds immediately after the changeover.
Loss balance continuity If the initial owners hold a total of 49% or more of the ownership interests in the new parent immediately after the changeover, the new parent is treated for the purposes of Part I (Treatment of tax losses) as— (a) holding, immediately after the changeover, the owner- ship interests in the subsidiary that the initial parent held immediately before the changeover; and having held the ownership interests for the period for which the ownership interests were treated as held by the initial parent.
(b) Credit account continuity If the initial owners hold a total of 66% or more of the ownership interests in the new parent immediately after the changeover, the new parent is treated for the purposes of subparts OB, OC, and OP (which relate to imputation credit accounts and FDP credit accounts) as— (a) holding, immediately after the changeover, the owner- ship interests in the subsidiary that the initial parent held immediately before the changeover; and (2) (3) 3054 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 18 (b) having held the ownership interests for the period for which the ownership interests were treated as held by the initial parent.
When subsection (5) applies (4) As the provisions of this section are intended to have conces- sionary effect, subsection (5) applies if— (a) at a time, for a company and a continuity provision, the requirements of the provision are not met; but the requirements would have been met but for the appli- cation to a particular extent of subsections (2) and (3).

(b) (5) (6) (7) Requirements met The requirements of the continuity provision are treated as met at the time.
Meaning of ownership interest In this section, ownership interest, for a company means— (a) a voting interest in the company as determined under section YC 4(2): a market value interest in the company as determined under section YC 4(5).
(b) Limited application to changeovers before 3 April 2006 Subsections (2) and (3) apply for a person for a changeover oc- curring before 3 April 2006 only if, before that date, the person ﬁles a return of income on the basis that the requirements of a continuity provision are satisﬁed in relation to the company and the changeover.
Deﬁned in this Act: amalgamation, company, continuity provisions, limited at- tribution company, market value interest, ownership interest, return of income, voting interest Compare: 2004 No 35 s OD 5AA Section YC 18(6)(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 569(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YC 18(6)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 569(1)(b) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).

Section YC 18 list of deﬁned terms market value circumstance: repealed (with effect on 1 April 2008), on 6 October 2009, by section 569(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3055 Part Y s YC 18B Income Tax Act 2007 Reprinted as at 29 May 2012 YC 18B Corporate reorganisations not affecting economic ownership When subsection (3) applies Subsection (3) applies if a company (the initial parent) enters into an arrangement described in subsection (2).
Description of arrangement The description of the arrangement for the purposes of subsec- tion (1) is as follows: (a) (b) (c) (d) the initial parent is a limited attribution company that is treated under section YC 11(3) and (4) as holding own- ership interests in another company before the arrange- ment is entered into; and the ownership of the initial parent is reorganised so that another company (the new parent) is a limited attribu- tion company that is treated under section YC 11(3) and (4) as holding ownership interests in the initial parent after the arrangement is implemented; and the percentage ownership interests (the ﬁnal percent- age) that a person receives in the new parent is the same as their percentage ownership interests (the inital per- centage) in the initial parent that they cease to hold as a result of the arrangement.
For the purposes of this para- graph, a difference between the initial and ﬁnal percent- ages is ignored if the difference is caused by a transfer or non-transfer of ownership interests that— (i) facilitates the arrangement, and the relevant own- ership interests have a market value that is merely nominal relative to the value of the ownership interests in the new parent: is the direct result of impossibility or impractica- bility caused by securities law requirements; and a person holding ownership interests in the initial parent before the arrangement is entered into does not receive a dividend, gift, or other direct beneﬁt as a result of the arrangement.
For the purposes of this paragraph,— (i) ownership interests in the initial parent for which paragraph (c)(ii) applies are excluded from a per- son’s holding of ownership interests: (ii) (1) (2) 3056 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 18B (ii) ownership interests in the new parent are ex- cluded from being a dividend, gift, or other direct beneﬁt.
(3) (4) (5) Loss balance and credit account continuity For the purposes of the tests of ownership and control in Part I and subparts LP, OA, OB, OC, OE, and OP (which relate to loss balances, tax credits, and memorandum accounts), start- ing from when the initial parent is ﬁrst treated under section YC 11(3) and (4) as holding the ownership interests in another company, the new parent is treated as— (a) existing and having the shareholders it has immediately after the arrangement’s implementation: holding the ownership interests that the initial parent is treated under section YC 11(3) and (4) as holding: holding all ownership interests in the initial parent.
(b) (c) Effect of subsection (3) Subsection (3) does not prevent a change in shareholders, the holdings of ownership interests, or other circumstances, after the implementation of the arrangement from having an effect on the application of the continuity provisions and the provi- sions described in subsection (3) after the implementation of the arrangement.
Deﬁnitions In this section,–– (a) (b) ownership interest has the same meaning as in section YC 18(6), except that for the purposes of this section, excluded preference shares are ignored: excluded preference share means a share that is disre- garded, under section 703–37 of the Income Tax As- sessment Act 1997 (Aust), in determining whether a company can be a subsidiary member of a consolidated group for the purposes of that Act.
Deﬁned in this Act: Deﬁned in this Act: arrangement, company, continuity provision, dividend, excluded preference share, limited attribution company, ownership interest, share, shareholder Section YC 18B: inserted (with effect on 1 April 2008), on 6 October 2009, by section 570 of the Taxation (International Taxation, Life Insurance, and Remed- ial Matters) Act 2009 (2009 No 34).
3057 Part Y s YC 19 Income Tax Act 2007 Reprinted as at 29 May 2012 YC 19 Legislative conversion of foreign company of proprietors (1) (2) When this section applies This section applies if— (a) a company of proprietors is established by a statute of a legislature outside New Zealand; and the company of proprietors becomes a limited liability company as a result of another statute.
(b) Proprietor acquiring voting or market value interest Subsection (3) applies if— (a) a person acquires a voting interest or a market value interest in a company on the conversion of a company of proprietors; and immediately before the conversion, the person was a proprietor of the company of proprietors and the person acquired the interest solely as a result of being a propri- etor.
(b) Company and person treated as always having held interest (3) With effect from the date of acquisition but subject to section YC 10,— (a) (b) the company of proprietors is treated as having been a company with shareholders at all times before the con- version; and the person is treated as having held the voting interest or market value interest at all times before the conversion.
Deﬁned in this Act: company, market value interest, New Zealand, shareholder, voting interest Compare: 2004 No 35 s OD 5B YC 20 Credit account continuity provisions: excluded ﬁxed rate securities When this section applies This section applies for the purposes of the credit account con- tinuity provisions.

Counting excluded ﬁxed rate securities Section YC 6 applies as if— (a) (b) section YC 6(1)(a) were omitted; and each other reference to “excluded ﬁxed rate security” were omitted.
(1) (2) 3058 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YC 20 (3) Relationship with section YA 1 Section YA 1 (Deﬁnitions) applies as if— (a) (b) paragraph (e) of the deﬁnition of excluded option were omitted; and in paragraphs (a), (b), and (f) of the deﬁnition of market value circumstance, the words “an excluded ﬁxed rate security” were replaced by “a”.
Deﬁned in this Act: credit account continuity provisions, excluded ﬁxed rate security Compare: 2004 No 35 s OD 6 Subpart YD—Residence and source in New Zealand Contents Residence YD 1 Residence of natural persons YD 2 Residence of companies YD 3 Country of residence of foreign companies YD 3B Crown Source YD 4 Classes of income treated as having New Zealand source YD 5 Apportionment of income derived partly in New Zealand YD 6 Apportionment of income from sea transport YD 7 Apportionment of ﬁlm rental income YD 8 Apportionment of premiums derived by non-resident general insurers Conduit tax relief companies: special residence rules [Repealed] YD 9 Residence of CTR company shareholders [Repealed] YD 10 Meaning of CTR holding company [Repealed] YD 11 Meaning of CTR group member [Repealed] Page 3060 3062 3062 3063 3064 3067 3068 3069 3070 3072 3073 3073 3059 Part Y s YD 1 Income Tax Act 2007 Reprinted as at 29 May 2012 YD 1 Residence of natural persons Residence (1) What this section does This section contains the rules for determining when a person who is not a company is a New Zealand resident for the pur- poses of this Act.
Permanent place of abode in New Zealand (2) Despite anything else in this section, a person is a New Zealand resident if they have a permanent place of abode in New Zealand, even if they also have a permanent place of abode elsewhere.

183 days in New Zealand (3) A person is a New Zealand resident if they are personally present in New Zealand for more than 183 days in total in a 12-month period.
(4) Person treated as resident from ﬁrst of 183 days If subsection (3) applies, the person is treated as resident from the ﬁrst of the 183 days until the person is treated under sub- section (5) as ceasing to be a New Zealand resident.

Ending residence: 325 days outside New Zealand (5) A person treated as a New Zealand resident only under sub- section (3) stops being a New Zealand resident if they are per- sonally absent from New Zealand for more than 325 days in total in a 12-month period.
(6) Person treated as non-resident from ﬁrst of 325 days The person is treated as not resident from the ﬁrst of the 325 days until they are treated again as resident under this section.

Government servants (7) Despite subsection (5), a person who is personally absent from New Zealand in the service, in any capacity, of the New Zealand Government is treated as a New Zealand resident during the absence.
Presence for part-days For the purposes of this section, a person personally present in New Zealand for part of a day is treated as— (a) (b) present in New Zealand for the whole day; and not absent from New Zealand for any part of the day.
(8) 3060 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YD 1 (9) (10) Special concession for transitional residents [Repealed] [Repealed] No application for preceding 12 months [Repealed] [Repealed] Treatment of non-resident seasonal workers (11) Despite subsection (3), a non-resident seasonal worker is treated for the duration of their employment under the recog- nised seasonal employment scheme as a non-resident.
Deﬁned in this Act: company, New Zealand resident, non-resident seasonal worker, recognised seasonal employment scheme Compare: 2004 No 35 s OE 1 Section YD 1(9) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YD 1(9): repealed (with effect on 1 April 2008), on 6 October 2009, by section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YD 1(10) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YD 1(10): repealed (with effect on 1 April 2008), on 6 October 2009, by section 571(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YD 1(11) heading: added (with effect on 1 April 2009), on 6 October 2009, by section 571(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YD 1(11): added (with effect on 1 April 2009), on 6 October 2009, by section 571(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YD 1 list of deﬁned terms non-resident seasonal worker: added (with effect on 1 April 2009), on 6 October 2009, by section 571(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YD 1 list of deﬁned terms recognised seasonal employment scheme: added (with effect on 1 April 2009), on 6 October 2009, by section 571(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YD 1 list of deﬁned terms transitional resident: repealed (with ef- fect on 1 April 2008), on 6 October 2009, by section 571(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3061 Part Y s YD 2 Income Tax Act 2007 Reprinted as at 29 May 2012 YD 2 Residence of companies Four bases for residence (1) A company is a New Zealand resident for the purposes of this Act if— (a) (b) (c) (d) it is incorporated in New Zealand: its head ofﬁce is in New Zealand: its centre of management is in New Zealand: its directors, in their capacity as directors, exercise con- trol of the company in New Zealand, even if the direct- ors’ decision-making also occurs outside New Zealand.
International tax rules (2) Despite subsection (1), for the purpose of the international tax rules, a company is treated as remaining resident in New Zealand if it becomes a foreign company but is resident in New Zealand again within 183 days afterwards.
Cook Islands National Superannuation Fund trustee (3) Despite subsection (1), the trustee of the Cook Islands Na- tional Superannuation Fund, established by the Cook Islands National Superannuation Fund Deed under the Cook Islands National Superannuation Scheme Act 2000 (Cook Islands), is not a New Zealand resident.
Deﬁned in this Act: company, director, foreign company, New Zealand resident Compare: 2004 No 35 ss GC 9(6), OE 2(1), (1B) YD 3 Country of residence of foreign companies When this section applies This section applies for the purposes of the international tax rules to determine the country in which a foreign company is treated as resident for an accounting period.
Liability to income tax The company is treated as resident in a country if, at any time during the accounting period, it is liable to income tax in the country because any of the following is located in the coun- try— (a) (b) (c) (d) its domicile: its residence: its place of management: any other criterion of a similar nature.
(1) (2) 3062 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YD 3B (3) (4) (5) (6) Further rule: ﬁrst application Subsection (4) applies if the application of subsection (2) for an accounting period means that— (a) (b) the company is resident in 2 or more countries: the company is not resident in any country.
Applying New Zealand rules The company is treated as resident in the country in which— (a) (b) (c) (d) it is incorporated: it has its head ofﬁce: it has its centre of management: its directors, in their capacity as directors, exercise con- trol of the company, even if the directors’ decision-mak- ing also occurs outside the country.
Further rule: second application The company is treated as resident in the country in which its centre of management is located for the accounting period if no 1 country of residence is identiﬁed under subsection (4).

Final rule The Commissioner must determine the country of residence if no 1 country of residence is identiﬁed under subsection (5).
Deﬁned in this Act: accounting period, Commissioner, company, director, for- eign company, international tax rules Compare: 2004 No 35 s OE 2(2)–(6) Section YD 3(4)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 572(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

YD 3B Crown For the purposes of this Act and for the avoidance of doubt, Her Majesty the Queen in right of New Zealand is regarded as resident in New Zealand.
Deﬁned in this Act: New Zealand, resident in New Zealand Section YD 3B: inserted (with effect on 1 April 2011), on 29 August 2011 (ap- plying for the 2011–12 and later income years), by section 134(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
3063 Part Y s YD 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Source YD 4 Classes of income treated as having New Zealand source (1) (2) (3) What this section does This section lists the types of income that are treated as having a source in New Zealand for the purposes of this Act.
Business in New Zealand Income derived from a business has a source in New Zealand if— (a) (b) the business is wholly carried on in New Zealand: the business is partly carried on in New Zealand, to the extent to which the income is apportioned to a New Zealand source under section YD 5.
Contracts made or performed in New Zealand Income derived by a person from a contract has a source in New Zealand if the contract is— (a) made in New Zealand, except to the extent to which the person wholly or partly performs the contract outside New Zealand, and the income is apportioned to a source outside New Zealand under section YD 5: (b) made outside New Zealand but the person wholly or partly performs the contract here, to the extent to which the income is apportioned to a New Zealand source under section YD 5.
Personal services in New Zealand (4) An amount that is income under section CE 1 (Amounts de- rived in connection with employment) has a source in New Zealand if the amount is earned in New Zealand, even if the employer is not a New Zealand resident.

Accident compensation payments (5) An accident compensation payment as deﬁned in section CF 1(2) (Beneﬁts, pensions, compensation, and government grants) has a source in New Zealand.
Pensions The following amounts have a source in New Zealand: (a) a pension or annuity payable by the government of New Zealand: (6) 3064 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YD 4 (b) (c) a pension or annuity payable out of a superannuation scheme established in New Zealand: a gratuitous payment, within the deﬁnition of pension in section CF 1(2), if the services are provided in New Zealand.
Income from land owned in New Zealand Income derived by a person as the owner of land in New Zealand has a source in New Zealand.

Income from use in New Zealand of personal property Income, other than a royalty, derived as consideration for the use of, or right to use, personal property in New Zealand has a source in New Zealand if the income is— paid by a New Zealand resident: (a) paid by a non-resident, and for which the non-resident (b) is allowed a deduction.
(7) (8) Royalties (9) A royalty has a source in New Zealand if it is— (a) (b) paid by a New Zealand resident and not made in connec- tion with a business they carry on outside New Zealand through a ﬁxed establishment outside New Zealand: paid by a non-resident, and for which the non-resident is allowed a deduction.

(10) Dividends Income derived from shares in, or membership of, a company resident in New Zealand has a source in New Zealand.
Income from debt instruments (11) The following amounts have a source in New Zealand— (a) (b) interest or a redemption payment derived from money lent in New Zealand: interest or a redemption payment derived from money lent outside New Zealand— (i) to a New Zealand resident, unless the money is used by them for the purposes of a business they carry on outside New Zealand through a ﬁxed establishment outside New Zealand: to a non-resident, if the money is used by them for the purposes of a business they carry on in (ii) 3065 Part Y s YD 4 Income Tax Act 2007 Reprinted as at 29 May 2012 New Zealand through a ﬁxed establishment in New Zealand: income from securities issued by the government of New Zealand: income derived from debentures issued by a local au- thority or public authority: income derived from a mortgage of land in New Zealand.
(c) (d) (e) Income from disposal of New Zealand property Income derived from the disposal of property situated in New Zealand has a source in New Zealand.

Beneﬁciary income Income derived by a beneﬁciary from a trust has a source in New Zealand to the extent to which the income of the trust fund has a source in New Zealand.

Income from air transport Income derived from transporting people or property by air has a source in New Zealand if the transportation leaves from New Zealand.
Income from sea transport Income derived from transporting people or property by sea has a source in New Zealand if the transportation leaves from New Zealand to the extent to which the income is apportioned to a New Zealand source under section YD 6.

(12) (13) (14) (15) Non-resident general insurers (16) A premium for general insurance paid to a non-resident gen- eral insurer of the type described in section YD 8 has a source in New Zealand to the extent set out in section YD 8(2).
(17) Non-resident life insurers: policies in New Zealand Income of a non-resident life insurer calculated under section EY 48 (Non-resident life insurers with life insurance policies in New Zealand) has a source in New Zealand.

Income from New Zealand partnerships (17B) Income has a source in New Zealand if, treating all of the part- ners of a New Zealand partnership as resident in New Zealand, the income is treated as having a source in New Zealand under another provision of this section.
The application of the other 3066 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YD 5 (18) provisions of this section is unaffected if this subsection does not apply.

Any other source in New Zealand Income derived directly or indirectly from any other source in New Zealand has a source in New Zealand.
Deﬁned in this Act: accident compensation payment, amount, business, company, debentures, deduction, dispose, employer, ﬁxed establishment, general insurance, income, interest, life insurer, local authority, money lent, New Zealand, New Zealand partnership, New Zealand resident, non-resident, partner, pay, pension, public authority, redemption payment, royalty, share, source in New Zealand, superannuation scheme Compare: 2004 No 35 ss FB 2(2) Section YD 4(17B) heading: inserted, on 1 April 2008, by section 26(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YD 4(17B): inserted, on 1 April 2008, by section 26(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YD 4 list of deﬁned terms New Zealand partnership: inserted, on 1 April 2008, by section 26(2) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).

Section YD 4 list of deﬁned terms partner: inserted, on 1 April 2008, by section 26(2) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).
Section YD 4 compare note: amended (with effect on 1 April 2008), on 6 Octo- ber 2009, by section 573 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
YD 5 Apportionment of income derived partly in New Zealand (1) When this section applies This section applies when— (a) a person carries on business partly in New Zealand and partly outside New Zealand; or a contract is made in New Zealand and is performed, in whole or in part, by a person outside New Zealand; or a contract is made outside New Zealand and is per- formed, in whole or in part, by a person in New Zealand.
(b) (c) Relationship with source rules (1B) This section does not apply to limit the effect of— (a) (b) any of the source rules in section YD 4 other than those in section YD 4(2) and (3); or the source rules in section YD 4(2) and (3) to the extent to which the income referred to is also income referred 3067 Part Y s YD 6 Income Tax Act 2007 Reprinted as at 29 May 2012 (2) (3) to in any source rule other than those in section YD 4(2) and (3).
Apportionment The amount of income derived from the business or under the contract, and the amount of expenditure incurred in deriving the income, must be apportioned between New Zealand and sources outside New Zealand to the extent necessary to achieve the result in subsection (3).
Necessary effect of apportionment The result of the apportionment, to the extent consistent with subsection (2), must be that the person’s net income or net loss, in relation to the business or contract, is the same as a separ- ate and independent person would have if they were carrying out only the person’s activities in New Zealand and dealing at arm’s length.
Deﬁned in this Act: amount, business, gross, income, net loss, New Zealand Compare: 2004 No 35 s FB 2(1A) Section YD 5(1B) heading: inserted (with effect on 1 April 2008), on 6 October 2009, by section 574(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YD 5(1B): inserted (with effect on 1 April 2008), on 6 October 2009, by section 574(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YD 5(3): amended (with effect on 1 April 2008), on 6 October 2009, by section 574(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YD 5 compare note: amended (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 574(3) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
YD 6 Apportionment of income from sea transport When this section applies This section applies when a non-resident derives an amount of income from transporting people or property by sea from New Zealand to a destination outside New Zealand.

Five percent from source in New Zealand Five percent of the amount is treated as having a source in New Zealand and the remainder of the amount is treated as not having a source in New Zealand.
(1) (2) 3068 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YD 7 Reduction by Commissioner (3) Despite subsection (2), the Commissioner may reduce the amount that is treated as having a source in New Zealand to the extent to which the country in which the non-resident is resident would treat an amount derived by a New Zealand resident from sea transport from that country as— not having a source in that country: (a) otherwise as exempt from income tax in that country.
(b) (4) (5) No deduction The non-resident is denied a deduction under section DW 3 (Non-resident general insurers, shippers, and ﬁlm renters) for expenditure or loss incurred.

Intervening stop in New Zealand The transport of people or property from a port in New Zealand is treated as transport to a place outside New Zealand even if the ship calls at another New Zealand port before leaving New Zealand.
Deﬁned in this Act: amount, Commissioner, income, income tax, New Zealand resident, non-resident Compare: 2004 No 35 ss FC 18, FC 19 YD 7 Apportionment of ﬁlm rental income (1) When this section applies This section applies if a non-resident person derives an amount that would be treated as having a source in New Zealand under section YD 4 from 1 or more of the following activities: (a) renting, exhibiting, or issuing a ﬁlm or making other arrangements for its exhibition: selling or hiring ﬁlm containers, cinematographic or photographic materials, or equipment or accessories re- lating to a ﬁlm: selling or hiring advertising materials relating to a ﬁlm.
(b) (c) Income and exempt income (2) Despite section YD 4, 10% of the amount is treated as having a source in New Zealand and the remainder of the amount is treated as not having a source in New Zealand.
3069 Part Y s YD 8 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) (4) (5) Agreement with other non-resident If the non-resident person is required under an agreement with another non-resident person (person A) to pay person A an amount that is a ﬁlm rent, royalty, commission, or that arises from an amount derived by the non-resident person from the activities, the amount paid to person A is treated as not having a source in New Zealand.
No deduction The non-resident is denied a deduction under section DW 3 (Non-resident general insurers, shippers, and ﬁlm renters) for expenditure or loss incurred.

Insigniﬁcant proportion This section does not apply to a non-resident person if the amounts derived by them for the activities are an insigniﬁcant proportion of the total amounts derived by them from a busi- ness carried on in New Zealand or elsewhere.
Deﬁned in this Act: amount, arrangement, business, exempt income, ﬁlm, in- come, New Zealand, non-resident, royalty, source in New Zealand Compare: 2004 No 35 s FC 21 YD 8 Apportionment of premiums derived by non-resident general insurers When this section applies This section applies if— (a) (b) a premium is paid under a contract of insurance; and the insurance is of 1 of the types listed in subsection (4); and when the insurer derives the premium, they are a non- resident; and the premium is not attributable to a business of the in- surer which they carry on in New Zealand through a ﬁxed establishment in New Zealand; and the premium is treated as connected with New Zealand under any of the tests of connection in subsection (5); and subsection (6) does not apply to override subsection (5).
(c) (d) (e) (f) (1) 3070 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YD 8 (2) (3) (4) Ten percent of premium from source in New Zealand Ten percent of the gross premium is treated as having a source in New Zealand and the remainder of the gross premium is treated as not having a source in New Zealand.
Special rules The following provisions apply in relation to taxation of the 10% amount: (a) the insurer is denied a deduction for expenditure or loss incurred, under section DW 3 (Non-resident general in- surers, shippers, and ﬁlm renters): sections HD 16 (Non-resident general insurers) and HD 17 (Agent paying premiums to residents of Switzer- land) apply to impose certain obligations in relation to payment of income tax and provision of tax returns and other information.
(b) Types of insurance The types of insurance referred to in subsection (1)(b) are— (a) (b) general insurance: a guarantee against risk given by an insurer to an insured person if— (i) the insured person is liable to pay a premium to the insurer for the guarantee; and the insured person is associated with the insurer: (ii) a guarantee against risk given by an insurer to an insured person if— (i) (c) (ii) (iii) (iv) the insured person is liable to pay a premium to the insurer for the guarantee; and the risk arises from money lent to the insured person; and the amounts the insured person is liable to pay for the money are signiﬁcantly less than they would otherwise have been because of the guarantee; and the effect of the guarantee on the amounts payable is more than an incidental effect, or comes about as more than an incidental purpose, of the insurer’s giving the guarantee.
3071 Part Y s YD 9 Income Tax Act 2007 Reprinted as at 29 May 2012 (5) Connection with New Zealand The premium is connected with New Zealand if— (a) (b) (c) the insurance contract from which the premium is de- rived is offered or entered into in New Zealand: the insured person is resident in New Zealand: the insured person is a non-resident but enters into the insurance contract for the purposes of a business they carry on in New Zealand through a ﬁxed establishment in New Zealand.
No connection if all risk offshore (6) Despite subsection (5), the premium is treated as not connected with New Zealand if— (a) all risk covered by the premium is located outside New Zealand; and the insurer deriving the premium is not associated with the insured person.
(b) Deﬁned in this Act: business, ﬁxed establishment, general insurance, insurance, insurance contract, insured person, insurer, pay, source in New Zealand Compare: 2004 No 35 ss FC 13, FC 14(1) Conduit tax relief companies: special residence rules [Repealed] Heading: repealed (with effect on 1 July 2011), on 7 May 2012, by section 136(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
YD 9 Residence of CTR company shareholders [Repealed] Section YD 9: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 136(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Section YD 9(1): amended (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 135(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
3072 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YE 1 YD 10 Meaning of CTR holding company [Repealed] Section YD 10: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 136(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
YD 11 Meaning of CTR group member [Repealed] Section YD 11: repealed (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 136(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Subpart YE—References to balance dates and years Contents YE 1 References to balance dates and years Page 3073 YE 1 References to balance dates and years (1) When this section applies This section applies for the purposes of the Act unless the con- text requires otherwise.
Tax year identiﬁed by 2 years (2) A reference to a tax year that is identiﬁed by a reference, in full or short form, to 2 years is a reference to the tax year that— starts on 1 April in the earlier of those years; and (a) ends on 31 March in the later of those years.
(b) Income year identiﬁed by 2 years (3) A reference to an income year that is identiﬁed by a reference, in full or short form, to 2 years is a reference to the correspond- ing income year for the tax year that a reference to the same 2 years would identify.
Standard balance date or accounting years (4) A reference to a person with a standard balance date, a standard accounting year, or a standard income year is a reference to a 3073 Part Y s YE 1 Income Tax Act 2007 Reprinted as at 29 May 2012 person who ﬁles a return of income under section 33 of the Tax Administration Act 1994 for a tax year on the basis of a corresponding income year also ending on 31 March.
Non-standard balance date, accounting year, or income year (5) A reference to a person with a non-standard balance date, non- standard accounting year, or non-standard income year is a reference to a person who has approval under section 38 of the Tax Administration Act 1994 to ﬁle a return of income for a tax year on the basis of a corresponding income year ending other than 31 March.
Unless the context requires otherwise, the non-standard year is the accounting year that corresponds to the tax year for which the reference is made.

Early balance date (6) A reference to a person with an early balance date is a ref- erence to a person who has approval under section 38 of the Tax Administration Act 1994 to ﬁle a return of income for a tax year on the basis of a corresponding income year that ends in a date between 1 October and the following 31 March, both days inclusive.
Unless the context requires otherwise, the year with the early balance date is the accounting year that corres- ponds with the tax year for which the reference is made.
Late balance date (7) A reference to a person with a late balance date is a reference to a person who has approval under section 38 of the Tax Ad- ministration Act 1994 to ﬁle a return of income for a tax year on the basis of a corresponding income year that ends in a date between 1 April and the following 30 September, both days in- clusive.
Unless the context otherwise requires, the year with the late balance date is the accounting year that corresponds with the tax year in relation to which the reference is made.
Deﬁned in this Act: accounting year, corresponding income year, early balance date, income year, late balance date, non-standard accounting year, non-stand- ard balance date, non-standard income year, return of income, standard account- ing year, standard balance date, standard income year Compare: 2004 No 35 s OF 1 3074 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YF 1 Subpart YF—Currency conversion Contents YF 1 General rules for currency conversion YF 2 Other rules for currency conversion: approved alternatives Page 3075 3077 YF 1 General rules for currency conversion (1) When this section applies This section applies when— (a) (b) (c) an amount is paid or payable in a currency other than New Zealand currency; and a provision in this Act requires the amount to be taken into account in New Zealand currency, whether ex- pressly or by necessary implication; and this Act does not contain a speciﬁc currency conversion rule that requires the conversion of the amount into New Zealand currency under a method other than those in this section.
(2) Use of spot exchange rate The amount must be converted into New Zealand currency by applying the close of trading spot exchange rate on the date at which the amount is required to be measured or calculated.
Alternative use of monthly average rates (3) Despite subsection (2), the amount may be converted into New Zealand currency by applying the average of the close of trad- ing spot exchange rates for the 15th day of each complete month that falls in the relevant period if— the Commissioner allows it: (a) a provision in this Act speciﬁcally allows it.
(b) Particular cases in which monthly average rate permitted [Repealed] [Repealed] (4) General conversion rates and calculation methods approved by Commissioner (5) Despite subsection (2), the amount may be converted into New Zealand currency by applying a rate— 3075 Part Y s YF 1 Income Tax Act 2007 Reprinted as at 29 May 2012 (a) (b) set by the Commissioner for general use for the pur- poses of this section: calculated using a method approved by the Commis- sioner for general use for the purposes of this section.
Speciﬁc conversion rates and calculation methods approved by Commissioner (6) Despite subsection (2), a person may convert the amount into New Zealand currency by applying a rate— (a) approved by the Commissioner for use in the circum- stances of the person: calculated using a method approved by the Commis- sioner for use in the circumstances of the person.
Deﬁned in this Act: amount, close of trading spot exchange rate, Commissioner, New Zealand, pay (b) Section YF 1(1)(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 575(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YF 1(3) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 575(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YF 1(3)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 575(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YF 1(4) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 575(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section YF 1(4): repealed (with effect on 1 April 2008), on 6 October 2009, by section 575(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section YF 1(5) heading: added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YF 1(5): added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Re- medial Matters) Act 2010 (2010 No 109).
Section YF 1(6) heading: added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section YF 1(6): added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Re- medial Matters) Act 2010 (2010 No 109).
3076 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YZ 1 YF 2 Other rules for currency conversion: approved alternatives (1) (2) When this section applies This section applies when— (a) (b) a provision other than section YF 1 provides a rate or method for currency conversion; and for the purposes of the provision, a person is required to convert an amount expressed in a currency other than New Zealand currency.
Representative rates The Commissioner may set a representative conversion rate that the person may use, instead of the rate or method referred to in subsection (1)(a), in converting the amount into New Zealand currency.
Deﬁned in this Act: amount, Commissioner, New Zealand Section YF 2: added (with effect on 1 April 2008), on 7 September 2010 (ap- plying for the 2008–09 and later income years), by section 119(1) of the Taxa- tion (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remed- ial Matters) Act 2010 (2010 No 109).
Subpart YZ—Terminating provisions Contents YZ 1 YZ 2 YZ 3 Source rule for interest Saving of effect of section 394L(4A) of Income Tax Act 1976 Saving effect of section DF 5 of Income Tax Act 1994 Page 3077 3078 3078 YZ 1 Source rule for interest (1) Application from 29 July 1983 Section YD 4(11)(a) and (b) (Classes of income treated as hav- ing New Zealand source) applies to— (a) interest derived from money lent under a binding con- tract entered into on or after 29 July 1983: a redemption payment made on a commercial bill if— it was issued on or after 29 July 1983; and (i) (b) 3077 Part Y s YZ 2 Income Tax Act 2007 Reprinted as at 29 May 2012 (ii) it was not issued under a binding contract entered into before that date.
(2) Meaning of issue In this section, issue has the meaning given in section 2 of the Bills of Exchange Act 1908.

Deﬁned in this Act: commercial bill, interest, money lent, redemption payment Compare: 2004 No 35 s OE 4(1A) YZ 2 Saving of effect of section 394L(4A) of Income Tax Act 1976 Section 394L(4A) of the Income Tax Act 1976 continues to apply in the same manner as it applied immediately before the repeal of that Act by the Income Tax Act 1994.
Compare: 2004 No 35 s YA 5B Section YZ 2: added (with effect on 1 April 2008), on 6 October 2009, by section 576(1) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
YZ 3 Saving effect of section DF 5 of Income Tax Act 1994 (1) When this section applies This section applies when a person— (a) has made a payment to which section DC 1 (Lump sum payments on retirement) would otherwise apply in the absence of this section; and has allocated the deduction for the payment to an in- come year relying on the wording used in section DF 5 (Retiring allowances payable to employees) of the In- come Tax Act 1994; and has taken the tax position for the allocation on or before 22 February 2011.
(b) (c) Savings provision (2) Despite the express wording used in section DC 1, section DF 5 continues to apply for the person in relation to the tax position in the same manner as it applied immediately before the repeal of the Income Tax Act 1994 by the Income Tax Act 2004.
Deﬁned in this Act: deduction, income year, pay 3078 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Y s YZ 3 Section YZ 3: added (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 135(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
3079 Income Tax Act 2007 Reprinted as at 29 May 2012 Part Z Repeals, amendments, and savings Contents ZA 1 Repeals ZA 2 Consequential amendments to other enactments ZA 3 Transitional provisions ZA 4 ZA 5 ZA 6 Comparative tables of old and new provisions Saving of binding rulings Saving of accrual determinations Page 3080 3080 3081 3082 3083 3084 ZA 1 Repeals (1) Schedule 48 The enactments listed in schedule 48 (Enactments repealed) are repealed.
Repeals effective only for 2008–09 income year and later (2) However, unless the context requires otherwise, the repeals listed in schedule 48 apply only in relation to the tax on income derived in the 2008–09 income year and later income years.
Deﬁned in this Act: income, income year, tax Compare: 2004 No 35 s YA 1 ZA 2 Consequential amendments to other enactments (1) Schedules 49 and 50 The enactments listed in schedules 49 (Enactments amended) and 50 (Amendments to the Tax Administration Act 1994) are amended in the manner indicated in the schedule.
Amendments effective only for 2008–09 income year and later (2) However, unless the context requires otherwise, the amend- ments to the Tax Administration Act 1994 apply only in rela- tion to the tax on income derived in the 2008–09 income year and later income years.
Deﬁned in this Act: income, income year, tax Compare: 2004 No 35 s YA 2 3080 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Z s ZA 3 ZA 3 Transitional provisions When reference to this Act includes earlier Act (1) A reference in an enactment or document to this Act, or to a provision of it, is to be interpreted as a reference to the Income Tax Act 2004, or the Income Tax Act 1994, or the Income Tax Act 1976, or to the corresponding provision of the earlier Act, to the extent necessary to reﬂect sensibly the intent of the enactment or document.
When reference to earlier Act includes this Act (2) A reference in an enactment or document to the Income Tax Act 2004, or the Income Tax Act 1994, or the Income Tax Act 1976, or to a provision of that earlier Act, is to be interpreted as a reference to this Act, or to the corresponding provision in this Act, to the extent necessary to reﬂect sensibly the intent of the enactment or document.
(3) Intention of new law The provisions of this Act, including any amendments made by this Act to the Tax Administration Act 1994, are the provi- sions of the Income Tax Act 2004 in rewritten form, and are intended to have the same effect as the corresponding provi- sions of the Income Tax Act 2004.

Subsection (5) overrides this subsection.
Using old law as interpretation guide (4) Unless a limit in subsection (5) applies, in circumstances where the meaning of a taxation law that comes into force at the commencement of this Act (the new law) is unclear or gives rise to absurdity— (a) the wording of a taxation law that is repealed by section ZA 1 and that corresponds to the new law (the old law) must be used to determine the correct meaning of the new law; and it can be assumed that a corresponding old law provision exists for each new law provision.
(b) (5) Limits to subsections (3) and (4) Subsections (3) and (4) do not apply in the case of— (a) a new law listed in schedule 51 (Identiﬁed changes in legislation); or 3081 Part Z s ZA 4 Income Tax Act 2007 Reprinted as at 29 May 2012 (b) a new law that is amended after the commencement of this Act, with effect from the date on which the amend- ment comes into force.
Deﬁned in this Act: taxation law Compare: 2004 No 35 s YA 3 ZA 4 Saving of binding rulings (ii) (ii) When, and extent to which, this section applies This section applies when, and to the extent to which,— (a) either— (i) an applicant has applied for a private ruling, a product ruling, or a status ruling, before the be- ginning of the 2008–09 income year on an ar- rangement that is entered into, or that the appli- cant seriously contemplates will be entered into before the commencement of this Act; or a public ruling is issued before the beginning of the 2008–09 income year; and (b) (c) (d) the binding ruling is about— (i) a taxation law that is repealed by section ZA 1 (the old law); or a taxation law in the Income Tax Act 1994 that preceded and corresponded to the old law; and a new taxation law that corresponds to the old law (the new law) comes into force at the commencement of this Act; and in the absence of this section, the commencement of this Act would mean that the binding ruling would cease to apply because of section 91G of the Tax Administration Act 1994.
Ruling about new law The binding ruling is treated as if it were made about the new law, so that the effect of the ruling at the commencement of this Act is the same as its effect before the commencement.
No conﬁrmation rulings To the extent to which a binding ruling continued by subsec- tion (2) exists and applies to an arrangement, or to a person (1) (2) (3) 3082 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Z s ZA 5 and an arrangement, the Commissioner must not make a bind- ing ruling on how— (a) the new law applies to the arrangement or to the person and the arrangement; or this subsection applies to the arrangement or to the per- son and the arrangement.
(b) Deﬁned in this Act: arrangement, binding ruling, commencement of this Act, Commissioner, taxation law Compare: 2004 No 35 s YA 4 ZA 5 Saving of accrual determinations (1) When, and extent to which, this section applies This section applies when— (a) a determination has been made before the beginning of the 2008–09 income year under— (i) section 90 or 90AC of the Tax Administration Act 1994; or section 64E of the Income Tax Act 1976; and (ii) the determination has not been cancelled before the be- ginning of the 2008–09 income year; and the determination is about— (i) a taxation law that is repealed by section ZA 1 (the old law); or a taxation law in the Income Tax Act 1994 or the Income Tax Act 1976 that preceded and corre- sponded to the old law; and (ii) a new taxation law that corresponds to the old law (the new law) comes into force at the commencement of this Act; and in the absence of this section, the commencement of this Act would mean that that determination would cease to apply because the taxation law to which it applied had ceased to exist.
(b) (c) (d) (e) (2) Determination about new law The determination is treated as if it were made about the new law, so that the effect of the determination at the commence- ment of this Act is the same as its effect before the commence- ment.

3083 Part Z s ZA 6 Income Tax Act 2007 Reprinted as at 29 May 2012 (3) No conﬁrmation determinations To the extent to which a determination continued by subsection (2) applies, the Commissioner must not make a determination on how the new law applies.
Deﬁned in this Act: commencement of this Act, Commissioner, taxation law Compare: 2004 No 35 s YA 5 ZA 6 Comparative tables of old and new provisions Schedule 52 Schedule 52 (Comparative tables of old and rewritten provi- sions) sets out corresponding provisions in the Income Tax Act 2004, the Income Tax Act 1994, the Tax Administration Act 1994, and this Act at the commencement of this Act.
Parts of schedule The schedule has the following 4 parts: (a) (1) (2) (ii) (iii) part A lists each provision in the Income Tax Act 2004 and— (i) indicates the corresponding provision in this Act; or indicates the corresponding provision in the Tax Administration Act 1994; or indicates the corresponding provision in the Goods and Services Tax Act 1985; or (iv) states that the provision has been omitted: part B lists each provision in this Act and the corres- ponding provision in the Income Tax Act 2004 and, as applicable, in Parts A to E of the Income Tax Act 1994, or states that the provision is new: part C lists the provisions that this Act inserts in the Tax Administration Act 1994 and— (i) indicates the corresponding provision in the Income Tax Act 2004; or states that the provision is new: (ii) part D lists each term deﬁned in this Act and its location in this Act, and— (i) indicates the source of the term in the Income Tax Act 2004; or states that the term is new.
(b) (c) (d) (ii) 3084 Reprinted as at 29 May 2012 Income Tax Act 2007 Part Z s ZA 6 (3) Purpose of schedule The schedule is provided to assist readers to identify corres- ponding provisions but must not be interpreted as a deﬁnitive guide to the correspondence of provisions.
Deﬁned in this Act: commencement of this Act Compare: 2004 No 35 s YA 6 3085 Schedule 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 1 Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe beneﬁts Schedule 1 heading: amended, on 1 April 2008, by section 554(1) of the Taxa- tion (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Part A Basic income tax rates 1 Taxable income: general To the extent to which a person does not have a basic rate under clauses 2 to 9, the basic rate of income tax for the person on each dollar of the person’s taxable income is calculated using the formula— tax under table 1 taxable income.

(a) (b) tax under table 1 means the total tax, calculated for each dollar in the person’s taxable income, using table 1: taxable income means the number of dollars in the per- son’s taxable income.
Table 1 Row Range of dollar in taxable income Tax rate 1 2 3 4 $0 – $14,000 $14,001 – $48,000 $48,001 – $70,000 $70,001 upwards 0.105 0.175 0.300 0.330 How to use this table: Find the range in the second column for each dollar in the person’s taxable income, and apply the relevant rate for the dollar in the third column.
Schedule 1 part A clause 1: amended (with effect on 1 April 2011), on 29 August 2011 (applying for the 2011–12 and later income years), by section 136(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part A table 1: substituted, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 71(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
3086 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule Part A—continued Taxable income: companies To the extent to which a company does not have a basic rate under clauses 3 to 9, the basic rate of income tax for the com- pany on each dollar of the company’s taxable income is 0.28.
Schedule 1 part A clause 2: amended (with effect on 1 April 2011), on 29 August 2011 (applying for the 2011–12 and later income years), by section 136(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part A clause 2: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Taxable income: trustees To the extent to which a trustee does not have a basic rate under clause 4, 5 or 6, the basic rate of income tax for the trustee on each dollar of the trustee’s taxable income is 0.33.

Taxable distribution: non-complying trust The basic rate of income tax on each dollar of a taxable distri- bution made by a non-complying trust is 0.45.
Schedular taxable income: category A income The basic rate of income tax for a trustee on each dollar of the trustee’s schedular taxable income that is for category A income is 0.28.

Schedule 1 part A clause 5: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Taxable income: trustees of certain funds To the extent to which a trustee does not have a basic rate under clause 4 or 5, the basic rate of income tax on each dollar of taxable income is 0.28 if the income is of a trustee of— (a) an approved unit trust to which the Income Tax Act (Ex- empt Unit Trusts) Order 1990 applies: a widely-held GIF: a widely-held superannuation fund.
(b) (c) Schedule 1 part A clause 6 heading: inserted, on 1 April 2008, by section 554(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

3087 Schedule 1 Income Tax Act 2007 Reprinted as at 29 May 2012 7 8 9 Part A—continued Schedule 1 part A clause 6: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Taxable income: Maori authorities The basic rate of income tax for a Maori authority on each dollar of the Maori authority’s taxable income is 0.175.

Schedule 1 part A clause 7: amended, on 1 April 2011, by section 136(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Schedular taxable income: schedular policyholder base income The basic rate of income tax for a person on each dollar of the person’s schedular taxable income that is for schedular policy- holder base income is 0.28.
Schedule 1 part A clause 8 heading: amended, on 1 July 2010, by section 577(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 1 part A clause 8: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 1 part A clause 8: amended, on 1 July 2010, by section 577(1)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Taxable income: New Zealand Superannuation Fund The basic rate of income tax on each dollar of taxable income derived by the Crown through the New Zealand Superannu- ation Fund is the rate applying to companies set out in clause 2.
Schedule 1 part A clause 9: added (with effect on 1 April 2011), on 29 August 2011 (applying for the 2011–12 and later income years), by section 136(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Part B Low income amount [Repealed] Schedule 1 part B: repealed (with effect from 1 April 2008), on 29 May 2008, by section 50(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
3088 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 1 Part C Basic rates for attributed fringe beneﬁts Table 1 Row Range of dollar in all-inclusive pay Tax rate 1 2 3 4 $0 – $12,530 $12,531 – $40,580 $40,581 – $55,980 $55,981 upwards 0.1173 0.2121 0.4286 0.4925 How to use this table: Find the range in the second column for each dollar in the person’s all-in- clusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.
Schedule 1 part C table 1: substituted, on 1 April 2011 (applying for the 2011–12 in- come year and later income years), by section 72(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Part D Basic rates for withholding Basic rates for ESCT 1 Amount of tax for section RD 67(a) For the purposes of section RD 67(a), the amount of tax is determined by applying the relevant rate given by table 1 to each dollar of an employer’s superannuation contribution.
Table 1 Row ESCT rate threshold amount Tax rate 1 2 3 4 $0 – $16,800 $16,801 – $57,600 $57,601 – $84,000 $84,001 upwards 0.105 0.175 0.300 0.330 How to use this table: Find the range in the second column for the last dollar of the ESCT rate threshold amount, and apply the relevant rate in the third column.
3089 Schedule 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Part D—continued Schedule 1 part D clause 1 heading: amended, on 1 April 2012, by section 136(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part D clause 1 heading: amended, on 1 April 2012, by section 14(a) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Schedule 1 part D clause 1: amended, on 1 April 2012, by section 136(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part D clause 1: amended, on 1 April 2012, by section 14(b) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Schedule 1 part D table 1: substituted, on 1 October 2010, by section 31 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 1 part D table 1: amended, on 1 April 2012, by section 14(c) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Amount of tax for section RD 67(b) [Repealed] Schedule 1 part D clause 2: repealed, on 1 April 2012, by section 14(d) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Basic Rates for RWT Interest: general If clause 4 does not apply, the payment rate for a payment of resident passive income that consists of interest is set out in table 2.
Table 2 Row Conditions Payment rate 1 2 The payer of the interest has not been supplied with the tax ﬁle number of a person who is paid the inter- est.
0.330 The payer of the interest— (a) (b) has been supplied with the tax ﬁle number of a person who opens a new account after 31 March 2010 and who is paid the interest; and has not received a payment rate election from the recipient of the interest: 2 3 3090 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 1 Part D—continued Row Conditions Payment rate (c) is not required to use a rate notiﬁed by the Commissioner under section 25A of the Tax Administration Act 1994.
0.330 3 The payer of the interest— (a) (b) has been supplied with the tax ﬁle number of a person who is paid the interest; and has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.390 or 0.380 payment rate, and the payer is not required to use a rate no- tiﬁed by the Commissioner under sec- tion 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.330 payment rate.
0.330 3B For a person who chooses the payment rate of 0.390 before 1 April 2010, the payer of the interest— (a) (b) has been supplied with the tax ﬁle number of the person; and has received a payment rate election from the person.
0.380 4 The payer of the interest— (a) (b) has been supplied with the tax ﬁle number of a person who is paid the interest; and has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.330 payment rate, and the payer is not required to use a rate notiﬁed by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.300 payment rate.
0.300 5 The payer of the interest— 3091 Schedule 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Part D—continued Row Conditions Payment rate (a) (b) (c) has been supplied with the tax ﬁle number of a person who has not opened a new account after 31 March 2010 and who is paid the interest; and has not received a payment rate election from the recipient of the interest; and is not required to use a rate notiﬁed by the Commissioner under section 25A of the Tax Administration Act 1994.
0.175 6 The payer of the interest— (a) (b) has been supplied with the tax ﬁle number of a person who is paid the interest; and has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.195 or 0.210 payment rate, and the payer is not required to use a rate no- tiﬁed by the Commissioner under sec- tion 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.175 payment rate.
0.175 7 The payer of the interest— (a) (b) has been supplied with the tax ﬁle number of a person, other than a trustee, who is paid the interest; and has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.125 payment rate, and the payer is not required to use a rate notiﬁed by the Commissioner under section 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.105 payment rate; and (c) the recipient has a reasonable expectation at the time of the election that their income for the income year will be $14,000 or less.
0.105 3092 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 1 Part D—continued Row Conditions 8 The payer of the interest— Payment rate (a) (b) has been supplied with the tax ﬁle number of a person who is paid the interest as a trustee of a testamentary trust to which section HC 37 applies; and has received a payment rate election from the recipient of the interest–– (i) before 1 October 2010, choosing the 0.125 payment rate, and the payer of the interest is not required to use a rate no- tiﬁed by the Commissioner under sec- tion 25A of the Tax Administration Act 1994: (ii) on or after 1 October 2010, choosing the 0.105 payment rate.
0.105 How to use this table: Find the applicable condition in the second column, in order to ﬁnd the rele- vant rate to apply, in the third column.

Schedule 1 part D clause 3: amended (with effect on 1 April 2008), on 7 De- cember 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Schedule 1 part D clause 3: amended (with effect from 1 April 2008), on 29 May 2008, by section 50(3) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Schedule 1 part D table 2: substituted, on 1 October 2010, by section 32 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 1 part D table 2 item 3B: inserted (with effect on 1 April 2010), on 7 September 2010, by section 120(1) of the Taxation (Annual Rates, Trans- Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

4 Interest: most companies The payment rate for a payment of resident passive income that consists of interest is set out in table 3 if the recipient of the payment is a company that is not a trustee or a Maori authority.
However, this restriction does not apply if the trustee is a portfolio investment entity.

3093 Schedule 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Part D—continued Table 3 Row Conditions 1 The payer of the interest— Payment rate (a) (b) has been supplied with the tax ﬁle number of a person who is paid the interest; and has not received a payment rate election from the recipient of the interest.
0.33 2 The payer of the interest— (a) (b) has been supplied with the tax ﬁle number of a person who is paid the interest; and has received a payment rate election from the recipient of the interest, choosing the 0.33 payment rate.
0.33 3 The payer of the interest— (a) has been supplied with the tax ﬁle number of a person who is paid the interest; and (b) either— (i) (ii) has received a payment rate election from the recipient of the interest, choos- ing the 0.38 payment rate; or has received a payment rate election from the recipient of the interest, choos- ing the 0.39 payment rate before 1 April 2010.

4 The payer of the interest has not been supplied with the tax ﬁle number of a person who is paid the inter- est.
0.38 0.38 How to use this table: Find the applicable condition, in the second column, in order to ﬁnd the relevant rate to apply, in the third column.

Schedule 1 part D clause 4: substituted (with effect on 1 April 2010), on 7 Sep- tember 2010, by section 120(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Schedule 1 part D table 3: substituted (with effect on 1 April 2010), on 7 Sep- tember 2010, by section 120(3) of the Taxation (Annual Rates, Trans-Tasman 3094 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 1 Part D—continued Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

5 6 Dividends and replacement payments The payment rate for a payment of resident passive income that consists of a dividend, or a replacement payment under a share-lending arrangement, is 0.33.
Schedule 1 part D clause 5: amended (with effect on 1 April 2008), on 7 De- cember 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Taxable Maori authority distributions The payment rate for a payment of resident passive income that consists of a taxable Maori authority distribution is set out in table 4.
Table 4 Row Conditions Payment rate 1 2 The Maori authority makes a taxable Maori authority distribution and does not meet the condition for the 0.33 payment rate in row 2.

0.175 The Maori authority: (a) (b) makes a taxable Maori authority distribution that is more than $200; and does not have a record of the tax ﬁle number of the member to whom the distribution is made.
0.33 How to use this table: Find the applicable condition, in the middle column, in order to ﬁnd the relevant rate to apply, in the right column.

Schedule 1 part D clause 6: amended (with effect on 1 April 2008), on 7 De- cember 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Schedule 1 part D table 4 row 1: amended (with effect on 1 October 2010), on 29 August 2011, by section 136(8) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part D table 4 row 1: amended, on 1 April 2011, by section 136(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
3095 Schedule 1 Income Tax Act 2007 Reprinted as at 29 May 2012 Part D—continued Schedule 1 part D table 4 row 1: amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 122(5)(a) of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Schedule 1 part D table 4 row 2: amended, on 1 October 2010, by section 34 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 1 part D table 4 row 2: amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 122(5)(b) of the Taxation (Conse- quential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Basic rates for RSCT Schedule 1 part D heading: added, on 1 July 2008, by section 554(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
7 Retirement scheme contributions The payment rate for an amount of a retirement scheme con- tribution made by a retirement scheme contributor for a person is set out in table 5.

Table 5 Row Conditions Payment rate 1 The person responsible for withholding RSCT— (a) (b) has been notiﬁed under section 28C of the Tax Administration Act 1994 that 12.5 or 10.5 cents in the dollar is the person’s retirement scheme prescribed rate; and has been supplied with the tax ﬁle number of the person.
0.105 The person is a non-resident and a distribution of no more than $200 is made to them by a retirement scheme contributor that is a Maori authority.

0.105 The person responsible for withholding RSCT— (a) has been notiﬁed under section 28C of the Tax Administration Act 1994 that 21 or 17.5 cents in the dollar is equal to or greater than the person’s retirement scheme prescribed rate; and 2 3 (b) has been supplied with the tax ﬁle number of the person.
0.175 4 The person responsible for withholding RSCT— 3096 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 1 Part D—continued Row Conditions (a) has been notiﬁed under section 28C of the Tax Administration Act 1994 that 33 or 30 cents in the dollar is equal to or greater than the person’s retirement scheme prescribed rate; and (b) has been supplied with the tax ﬁle number of the person.

5 When none of rows 1 to 4 apply.


Payment rate 0.300 0.330 How to use this table: Find the applicable condition in the second column, in order to ﬁnd the rele- vant rate to apply, in the third column.

Schedule 1 part D clause 7: added, on 1 July 2008, by section 554(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 1 part D table 5: substituted, on 1 October 2010, by section 35 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Part E Shoulder references The shoulder references for this schedule are the following sections: CB 28, CD 53, CS 1, EK 8, EK 12, EK 23, EX 20, EX 50, EY 43, FE 22, FM 28, HA 15, HA 24, HC 22, HC 34, HF 1, HL 29, LC 1, LC 2, LE 2, LJ 5, LP 8, LP 10, OA 18, OB 19, OB 42, OB 46, OB 69, OB 73, OB 75, OB 78, OB 80, OC 36, OC 38, OE 7, OE 8, OP 100, OP 102, RD 50, RD 51, RD 66, RD 67, RD 69, RD 70, RD 72, RE 11–RE 19, RF 9, RF 12, RM 21, YA 1.
Schedule 1 part E: amended (with effect on 30 June 2009), on 6 October 2009, by sec- tion 577(2) of the Taxation (International Taxation, Life Insurance, and Remedial Mat- ters) Act 2009 (2009 No 34).
3097 Schedule 2 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 2 ss RD 9–RD 11, RD 13, RD 14, RD 17, YA 1 Basic tax rates for PAYE income payments Part A Salary or wages “M”, “ME”, and “ML” tax codes: payments for weekly pay periods The basic tax rate amount for a payment of salary or wages is set by applying the Commissioner’s weekly PAYE table to the amount, using the employee’s tax code, if— (a) the payment is for a weekly pay period (including the case of section RD 3 applying); and the employee has notiﬁed their employer that the em- ployee’s tax code is “M”, “ME”, or “ML” under section 24B(3) of the Tax Administration Act 1994.
(b) Schedule 2 part A clause 1 heading: amended, on 1 April 2009, by section 37(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Schedule 2 part A clause 1(b): amended, on 1 April 2009, by section 37(2) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
“M”, “ME”, and “ML” tax codes: payments for pay periods longer than a week If an employee has notiﬁed their employer that the employee’s tax code is “M”, “ME”, or “ML” under section 24B(3) of the Tax Administration Act 1994, and the payment of salary or wages is for a pay period longer than a week, then the basic tax rate amount for the payment is calculated using the formula— total payment ( weekly portion of payment ) × weekly PAYE table amount.
(a) total payment means the payment of salary or wages to which this clause applies: (b) weekly portion of the payment means the portion of the payment that is attributable to the part of the pay period that is for a week if it is assumed that the pay- ment accrued at a uniform daily rate throughout the pay period: weekly PAYE table amount means the amount that re- sults from applying the Commissioner’s weekly PAYE (c) 1 2 3098 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 2 Part A—continued table to the weekly portion of the payment (described in paragraph (b)) using the employee’s tax code, as if the weekly portion is a payment for a weekly pay period.
Schedule 2 part A clause 2 heading: amended, on 1 April 2009, by section 37(3) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Schedule 2 part A clause 2: amended, on 1 April 2009, by section 37(4) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Schedule 2 part A clause 2 formula: substituted (with effect on 1 April 2008), on 7 December 2009, by section 123(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
“No notiﬁcation” tax code If an employee’s tax code under section 24B(3) of the Tax Administration Act 1994 is “no notiﬁcation”, the basic tax rate amount for a payment of salary or wages is set by applying the rate of 0.45 for each dollar of the payment.
“S” tax code If an employee has notiﬁed their employer that the employee’s tax code is “S” under section 24B(3) of the Tax Administration Act 1994, the basic tax rate amount for a payment of secondary employment earnings is set by applying the rate of 0.175 for each dollar of the payment.

Schedule 2 part A clause 4: amended, on 1 October 2010, by section 36(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
“SH” tax code If an employee has notiﬁed their employer that the employee’s tax code is “SH” under section 24B(3) of the Tax Adminis- tration Act 1994, the basic tax rate amount for a payment of secondary employment earnings is set by applying the rate of 0.300 for each dollar of the payment.

Schedule 2 part A clause 5: amended, on 1 October 2010, by section 36(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
“ST” tax code If an employee has notiﬁed their employer that the employee’s tax code is “ST” under section 24B(3) of the Tax Adminis- 3099 3 4 5 6 Schedule 2 Income Tax Act 2007 Reprinted as at 29 May 2012 Part A—continued tration Act 1994, the basic tax rate amount for a payment of secondary employment earnings is set by applying the rate of 0.330 for each dollar of the payment.
Schedule 2 part A clause 6: amended, on 1 October 2010, by section 36(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

“CAE” or “EDW” tax code If an employee has notiﬁed their employer that the employee’s tax code is “CAE” or “EDW” under section 24B(3) of the Tax Administration Act 1994, the basic tax rate amount for a pay- ment for employment as a casual agricultural worker or an election day worker (as applicable) is set by applying the rate of 0.175 for each dollar of the payment.
Schedule 2 part A clause 7: amended, on 1 October 2010, by section 36(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

“NSW” tax code If an employee has notiﬁed their employer that the employee’s tax code is “NSW” under section 24B(3) of the Tax Adminis- tration Act 1994, the basic tax rate amount for a payment for employment as a non-resident seasonal worker is set by apply- ing the rate of 0.105 for each dollar of the payment.
Schedule 2 part A clause 8: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 137(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Schedule 2 part A clause 8: added, on 6 October 2009, by section 578 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
“SB” tax code If an employee has notiﬁed their employer that the employee’s tax code is “SB” under section 24B(3)(bb) of the Tax Admin- istration Act 1994, the basic tax rate amount for a payment of secondary employment earnings is set by applying the rate of 0.105 for each dollar of the payment.

Schedule 2 part A clause 9: amended, on 1 October 2010, by section 36(e) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 2 part A clause 9: added, on 1 April 2010 (applying for the 2010–11 and later income years), by section 123(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

7 8 9 3100 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 2 Part B Extra pays Table 1 Row Condition 1 2 3 4 Section RD 17(2)(a) applies and the sum is $14,000 or less.

Section RD 10(2)(a) or RD 17(2)(b) applies.

Section RD 10(2)(b) or RD 17(2)(c) applies.


Section RD 10(2)(c) or RD 17(2)(d) applies.

Tax rate 0.105 0.175 0.300 0.330 How to use this table: Find the applicable condition in the second column, in order to ﬁnd the relevant rate to apply, in the third column.

Schedule 2 part B table 1: substituted, on 1 October 2010, by section 37 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
3101 Schedule 3 Income Tax Act 2007 Schedule 3 Reprinted as at 29 May 2012 ss EF 3, RA 13, RA 14, RC 1, RC 21, RC 25, RM 24, YA 1 Payment of provisional tax and terminal tax Part A Dates for payment of provisional tax and terminal tax Month of balance date A B C D E F G H October 28 Jan 28 Mar 28 May 28 Jul 28 Sep 28 Nov Sep November 28 Feb 7 May 28 Jun 28 Aug 28 Oct 15 Jan December 28 Mar 28 May 28 Jul 28 Sep 28 Nov 28 Jan Oct Nov January 7 May 28 Jun 28 Aug 28 Oct 15 Jan 28 Feb Dec February 28 May 28 Jul 28 Sep 28 Nov 28 Jan 28 Mar March April May June July 28 Jun 28 Aug 28 Oct 15 Jan 28 Feb 7 May 28 Jul 28 Sep 28 Nov 28 Jan 28 Mar 28 May Feb 28 Aug 28 Oct 15 Jan 28 Feb 7 May 28 Jun 28 Sep 28 Nov 28 Jan 28 Mar 28 May 28 Jul 28 Oct 15 Jan 28 Feb 7 May 28 Jun 28 Aug August 28 Nov 28 Jan 28 Mar 28 May 28 Jul 28 Sep September 15 Jan 28 Feb 7 May 28 Jun 28 Aug 28 Oct Jan Feb Feb Feb Feb Feb Feb Nov Dec Jan Feb Mar Apr Apr Apr Apr Apr Apr Apr For the purposes of this schedule, balance date, in relation to provi- sional tax or terminal tax payable by a person for a tax year to which an income year corresponds, means— (a) if neither of paragraphs (b) and (c) apply, the person’s annual balance date for their accounts for the income year: if the person has an income year that coincides with the tax year or is not required to provide a return of income for the tax year, 31 March: if the person is a non-resident company that does not have a ﬁxed establishment in New Zealand, 31 March.
(b) (c) 3102 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 3 Part B Months for payment under sections RC 9 and RC 22 to RC 25 Monthly and 2-monthly non-ratio and non-GST provisional taxpayers Transitional year length 0–4 mths 5–8 mths 9–12 mths 13–16 mths 17–20 mths 21–24 mths Transitional year length 0–6 mths 7–12 mths 13–18 mths 19–24 mths Transitional year length 0–2 mths 3–4 mths 5–6 mths 7–8 mths 9–10 mths 11–12 mths 13–14 mths 15–16 mths 17–18 mths New instalment months month following ﬁnal month 5th month, month following ﬁnal month 5th, 9th months, month following ﬁnal month 5th, 9th, 13th months, month following ﬁnal month 5th, 9th, 13th, 17th months, month following ﬁnal month 5th, 9th, 13th, 17th, 21st months, month following ﬁnal month 6-monthly non-ratio provisional taxpayers New instalment months month following ﬁnal month 7th month, month following ﬁnal month 7th, 13th months, month following ﬁnal month 7th, 13th, 19th months, month following ﬁnal month GST ratio provisional taxpayers New instalment months month following ﬁnal month 3rd month, month following ﬁnal month 3rd, 5th months, month following ﬁnal month 3rd, 5th, 7th months, month following ﬁnal month 3rd, 5th, 7th, 9th months, month following ﬁnal month 3rd, 5th, 7th, 9th, 11th months, month following ﬁnal month 3rd, 5th, 7th, 9th, 11th, 13th months, month following ﬁnal month 3rd, 5th, 7th, 9th, 11th, 13th, 15th months, month following ﬁnal month 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th months, month following ﬁnal month 1 2 3 4 19–20 mths 10 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th, 19th months, month following ﬁnal month 3103 Schedule 3 Income Tax Act 2007 Reprinted as at 29 May 2012 Transitional year length 21–22 mths 23–24 mths 11 12 Part B—continued New instalment months 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th, 19th, 21st months, month following ﬁnal month 3rd, 5th, 7th, 9th, 11th, 13th, 15th, 17th, 19th, 21st , 23rd months, month following ﬁnal month For the purposes of counting
 months under this schedule, the number is reckoned as set out in section RC 21(5).
3104 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 4 1 1 1B 2 Schedule 4 Rates of tax for schedular payments ss RD 8, YA 1 Part A Payments to non-resident contractors A contract payment that relates to a non-resident contractor’s contract activity or service has a 0.15 rate of tax for each dollar of the payment, if the payment is— to the non-resident contractor: (a) to an agent of the non-resident contractor: (b) to a person acting on behalf of the non-resident contrac- (c) tor.
Part B Payments of company directors’ fees, examiners’ fees, honoraria, and other payments A payment of a company director’s fee, or an examiner’s fee, or an honorarium, has a 0.33 rate of tax for each dollar of the payment.
A payment has a 0.33 rate of tax for each dollar of the payment, if it is for work or services performed by–– (a) (b) (c) (d) a local government elected representative: an ofﬁcial of a community organisation, society, or club: a chair or member of a committee, board, or council: an ofﬁcial, chair, or member of a body or organisation similar to one described in paragraph (b) or (c).
In this part, examiner’s fee means fees or remuneration for work or services that relate to examining an examination can- didate, if the work or services have the following nature: (a) setting an examination paper or question: (b) marking a candidate’s answer: examining a candidate orally: (c) examining a candidate’s practical work or performance.
(d) 3105 Schedule 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Part B—continued Schedule 4 part B heading: amended (with effect on 1 April 2008), on 7 Septem- ber 2010, by section 121(1) of the Taxation (Annual Rates, Trans-Tasman Sav- ings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Schedule 4 part B clause 1B: inserted (with effect on 1 April 2008), on 7 Septem- ber 2010, by section 121(2) of the Taxation (Annual Rates, Trans-Tasman Sav- ings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Part C Payments for work or services relating to primary production 1 A payment for work or services referred to in the following paragraphs has a 0.15 rate of tax for each dollar of the payment: (a) (b) (c) (d) (e) (f) farming contract work: cultivation contract work: shearing: droving: [Repealed] forestry or bush work (including bush felling, road and tramway work, removal of timber, undergrowth cutting, burning, or clearing): planting or cutting ﬂax: (g) (h) work described in section DO 1 or DO 2 that is related to land that is used or intended to be used for farming or agriculture.
Schedule 4 Part C clause 1(b): substituted, on 1 April 2010, by section 579(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 4 Part C clause 1(e): repealed, on 1 April 2010, by section 579(1)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
2 In this part,— cultivation contract work— (a) means work or services provided under a contract or arrangement— (i) for the supply of labour, or substantially for the supply of labour; and 3106 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 4 Part C—continued (b) (ii) on or in connection with land that is used or in- tended to be used for the cultivation of fruit crops, vegetables, orchards, or vineyards: excludes work or services provided by— (i) (ii) a post-harvest facility: a management entity under a formal management agreement under which the entity is responsible for payment for the work or services provided farming contract work means work that is related to land that is used or intended to be used for farming or agriculture, if the work has the following nature: (a) (b) ﬁrewood cutting, or post or rail splitting: cutting down trees incidental to work under paragraph (a): grass or grass seed cutting: hedge cutting: planting trees: planting or cutting ﬂax: threshing, chaffcutting, hay making, hay baling, or har- vesting or gathering crops (c) (d) (e) (f) (g) Schedule 4 part C clause 2 cultivation contract work: substituted (with effect on 1 April 2010), on 7 September 2010, by section 121(3) of the Taxation (An- nual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Mat- ters) Act 2010 (2010 No 109).
Schedule 4 part C clause 2 horticultural contract work: repealed, on 1 April 2010, by section 579(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Part D Payments for commercial cleaning and maintenance work, or for general contracting A payment for commercial cleaning or maintenance work has a 0.20 rate of tax for each dollar of the payment.
A payment for work or services referred to in the following paragraphs has a 0.15 rate of tax for each dollar of the payment: (a) mail delivery or collection: (b) transporting school children: 1 2 3107 Schedule 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Part D—continued (c) milk delivery: (d) (e) (f) refuse removal: caretaking or acting as a guard: street or road cleaning.
In this part,— commercial cleaning or maintenance work means work or services that are related to schedular commercial land, if the work or services have the following nature: cleaning all or part of premises: (a) cleaning or laundering plant, vehicles, furniture, fur- (b) nishings, ﬁttings, or equipment: gardening (including grass cutting and hedge cutting): destroying vermin: destroying weeds (c) (d) (e) schedular commercial land means land that— (a) (b) (c) is not used for farming or agriculture purposes: is not a dwellinghouse: is not premises that are used exclusively for residential purposes.
Part E Payments for labour-only building work, or for labour-only ﬁshing boat operating A payment for labour-only building work, or for labour-only ﬁshing boat work, has a 0.20 rate of tax for each dollar of the payment.
In this part,— labour-only ﬁshing boat work means work or services under a contract, arrangement, or agreement for proﬁt-sharing which is exclusively or substantially for the supply of labour in con- nection with operating or maintaining a ﬁshing boat that is re- quired to be registered under section 103 of the Fisheries Act 1996 3 1 2 3108 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 4 Part E—continued labour-only building work means work or services under a contract or arrangement which is exclusively or substantially for the supply of labour in connection with a building or a construction (including pre-fabrication and pre-cutting for the relevant building or construction), if the work or services have the following nature: (a) work or services that, customarily, may form part of the work or services of a carpenter under a building contract: (b) work or services connected with roof-ﬁxing, steel-ﬁx- ing, erecting fences, or laying concrete, bricks, blocks, tiles, slabs, or stones, if the relevant building or con- struction is not land that is used or intended to be used for farming or agriculture: work or services connected with hanging wallpaper, hanging decorative wall coverings or furnishings, or painting or decorating (including plastering): (c) (d) work or services connected with installing ﬁbrous plas- ter, wallboard, insulating material, interior tiles, interior lining, ﬂoor tiles, carpet, linoleum, or ﬂoor coverings.
Part F Payments for activities related to sports, media, entertainment, and public speaking Schedule 2 part F heading: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

1 2 A payment of a media contribution fee, or of a promotional appearance fee, has a 0.25 rate of tax for each dollar of the payment.
A payment that relates to media production work has a 0.20 rate of tax for each dollar of the payment, if part A of this schedule, and clauses 4 and 5 of this part do not apply to the payment.

3109 Schedule 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Part F—continued A payment of a modelling fee has a 0.20 rate of tax for each dollar of the payment.
A payment for services connected with a non-resident enter- tainer providing or performing a Part F activity has a 0.20 rate of tax for each dollar of the payment, if the payment is— (a) (b) (c) to the non-resident entertainer: to an agent of the non-resident entertainer: to a person acting on behalf of the non-resident enter- tainer.
Schedule 2 part F clause 4: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
A payment for services connected with a New Zealand resident providing or performing a Part F activity has a 0.20 rate for each dollar of the payment, if clause 6 does not apply to the payment and it is— (a) (b) (c) Schedule 2 part F clause 5: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
to the New Zealand resident: to an agent of the resident: to a person acting on behalf of the resident.
A payment for services connected with a New Zealand resident providing or performing a Part F activity has a 0.15 rate for each dollar of the payment, if the payment relates to shares of riding or driving fees and it is— (a) to the New Zealand resident, and the resident is an ap- prentice jockey or an apprentice driver: to an agent of the apprentice jockey or apprentice driver: to a person acting on behalf of the apprentice jockey or apprentice driver.
(b) (c) Schedule 2 part F clause 6: amended (with effect on 1 April 2008), on 6 October 2009, by section 579(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3 4 5 6 3110 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 4 Part F—continued 7 In this part,— media contribution fee means fees or remuneration, paid to a contributor, that relate to a contribution for television, radio, theatre, stage, or printed media media production work means work or services that relate to television, videos, or ﬁlms, if the work or services have the following nature: (a) (b) (c) modelling fee means fees or remuneration that relate to mod- elling, including a personal attendance for any promotional purpose, for photography, for supplying personal photographs, or for supplying personal endorsements or statements Part F activity means an activity or performance— (a) on-set and off-set pre-production work or services: on-set and off-set production work or services: on-set and off-set post-production work or services connected with— (i) (ii) making speeches or giving lectures or talks for a sporting event or competition: (iii) any purpose: acting, singing, playing music, dancing, or enter- taining generally, for any purpose and whether alone or not; and (b) undertaken by a person who meets the requirements of any of the following paragraphs: (i) (ii) (iii) they are not fully or partly sponsored under a cultural programme of an overseas government or the Government of New Zealand: they are not an ofﬁcial representative of a body that administers a game or sport in an overseas country: they are not undertaking an activity or perform- ance under a programme of a foundation, trust, or organisation outside New Zealand which exists for the promotion of a cultural activity and is not carried on for individual proﬁt of the member or shareholder: 3111 Schedule 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Part F—continued (iv) if they are an employee, ofﬁcer, or principal of a company, ﬁrm, or other person, includes the company, ﬁrm, or other person promotional appearance fee means fees or remuneration that relate to a personal attendance for exhibiting or demonstrating goods Schedule 2
 part F clause 7 Part F activity: inserted (with effect on 1 April 2008), on 6 October 2009, by section 579(6) of the Taxation (International Tax- ation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 2 part F clause 7 schedular entertainment activities: repealed (with effect on 1 April 2008), on 6 October 2009, by section 579(7) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Part G Sales commission A payment of commission or remuneration to an insurance agent or sub-agent, or to a salesperson has a 0.20 rate of tax for each dollar of the payment.
Part H Payments to purchase natural products A payment that relates to a purchase of schedular natural prod- ucts has a 0.25 rate of tax for each dollar of the payment, if the payment is made to the seller and it is not an exempt natural products payment.

A payment that relates to a purchase of game has a 0.25 rate of tax for each dollar of the payment, if the payment is made to the seller.
In this part,— exempt natural products payment means a payment that re- lates to the purchase of schedular natural products, if the pay- ment is made— (a) to a natural products dealer: 1 1 2 3 3112 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 4 Part H—continued (b) on a purchase that occurs after a disposal by a natural products dealer: to an auctioneer or a dealer acting as agent for the seller: at retail, in a shop (c) (d) game means all or part of a wild deer, wild pig, or wild goat, whether dead or alive natural products dealer means a person who— (a) is registered under any Act or regulation as a broker, dealer, or trader in relation to schedular natural prod- ucts: holds a natural product dealer certiﬁcate, issued by the Commissioner under section 44D of the Tax Adminis- tration Act 1994: holds an unrevoked certiﬁcate from the Commissioner showing that the person would be a licensed dealer for purposes of the Income Tax (Withholding Payments) Regulations 1979 if those regulations had not been re- voked by this Act (b) (c) schedular natural products means— (a) (b) (c) (d) greenstone (nephrite): eel: whitebait: sphagnum moss.
Part I Personal service rehabilitation payments Schedule 4 part I: added, on 1 April 2008, by section 556 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

1 A personal service rehabilitation payment for a person under the Accident Compensation Act 2001 has a 0.105 rate of tax for each dollar of the payment.

Schedule 4 part 1 clause 1: amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Schedule 4 part I clause 1: amended, on 1 October 2010, by section 38 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

3113 Schedule 4 Income Tax Act 2007 Reprinted as at 29 May 2012 Part I—continued Schedule 4 part I clause 1: amended, on 1 October 2008, by section 51 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
3114 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 5 Schedule 5 ss GB 31, RD 28, RD 29, RD 56, RD 57 Fringe beneﬁt values for motor vehicles 1 2 The following paragraphs apply to determine the value of the beneﬁt that an employee has for a quarter, tax year, or income year when section RD 60 applies, if in the quarter, tax year, or income year, a motor vehicle is provided by a person for the private use of an employee, or is made available for their private use: (a) if the vehicle is owned by the person, jointly or other- wise,— (i) on the basis of the cost price of the vehicle to the person: for a quarter, 5% of the cost price, and for a tax year or income year, 20% of the cost price: subject to clause 10, on the basis of the tax value of the vehicle to the person: for a quarter, 9% of the tax value, and for a tax year or income year, 36% of the tax value: (b) if the vehicle is leased or rented by the person from another person, whether they are associated or not,— (i) on the basis of the cost price of the vehicle to its owner at the time the beneﬁt is provided to the employee: for a quarter, 5% of the cost price, and for a tax year or income year, 20% of the cost price: subject to clause 10, on the basis of the tax value of the vehicle to its owner at the time the beneﬁt is provided to the employee: for a quarter, 9% of the tax value, and for a tax year or income year, 36% of the tax value.
(ii) (ii) If a motor vehicle to which this schedule applies is 1 of a num- ber of motor vehicles, each of which is available for private use as described in clause 1, the value of the beneﬁt is determined as follows: (a) if the employee mainly uses the same vehicle, clause 1 applies to that vehicle: if paragraph (a) does not apply, and the employee is employed in a business engaged in the selling of motor (b) 3115 Schedule 5 Income Tax Act 2007 Reprinted as at 29 May 2012 vehicles, and the vehicles available for use are trading stock of the business, clause 1 applies to the quotient obtained by dividing the sum of either the cost price of the vehicles or their tax value, by the total number of those vehicles: if paragraphs (a) and (b) do not apply, clause 1 applies to the highest value of any vehicle used by the employee.
(c) 3 4 In this schedule, a motor vehicle’s tax value in a quarter, tax year, or income year is— (a) the value of the vehicle as determined under subpart EE for the beginning of the tax year or income year, if paragraphs (b) and (c) do not apply; or the cost price of the vehicle, if the vehicle is acquired after the beginning of the tax year or income year, and paragraph (c) does not apply; or determined under clause 4 if, in the period of 2 years before the vehicle’s acquisition by the person (person A) providing it to the employee, the vehicle is owned by person A or by a person (person B) associated with them.
(b) (c) Schedule 5 clause 3(a): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 5 clause 3(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 580(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
For the purposes of clause 3(c), the tax value of the vehicle is the value it would have under subpart EE at the beginning of the tax year or income year, or at the time of acquisition in the year, treating the cost of the vehicle on acquisition as the amount determined under— clause 5, if— (a) (i) the cost price was last used by person A or person B for the vehicle under clause 1: clause 1 did not apply to the vehicle in the 2-year period referred to in clause 3(c) and neither per- son A nor person B has used the tax value for the vehicle under clause 1: (ii) 3116 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 5 (b) (c) clause 6, if person A did not own the vehicle and person B last used the tax value of the vehicle under clause 1: clause 7, if person A owned the vehicle and the tax value was last used for the vehicle under clause 1.
5 6 7 8 The highest of the following amounts is the relevant amount for clause 4(a): (a) the highest cost of the vehicle to person A on an acqui- sition of it by them: the highest cost of the vehicle to person B on an acqui- sition of it by them.

(b) The highest of the following amounts is the relevant amount for clause 4(b): (a) the tax value of the vehicle under this schedule for per- son B, immediately before the last disposal of the ve- hicle by them: the cost of the vehicle to person A on acquisition.
(b) The highest of the following amounts is the relevant amount for clause 4(c): (a) the tax value of the vehicle under this schedule for whichever of person A or person B last used tax value for the vehicle under clause 1, immediately before the last disposal of the vehicle by that person: the cost of the vehicle to person A on the last acquisition of it by them.
(b) To determine the value of a beneﬁt under clause 1— (a) any GST paid on the acquisition of a vehicle by the owner or lessor of the vehicle is— (i) included in the cost price of the motor vehicle or in the calculation of the motor vehicle’s tax value: not reduced by an amount of input tax on the supply of the vehicle to the owner or lessor: if, in the period of 2 years before the vehicle’s acquisi- tion by the person providing it to the employee, the ve- hicle is owned by the person or by someone associated (ii) (b) 3117 Schedule 5 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) (ii) with them, the cost price is treated as being the highest one of the cost prices paid for the vehicle by the person or an associate since its manufacture: subject to paragraph (b), the cost price of the vehicle is treated as being equal to the vehicle’s market value if,— the cost to the person who acquires the vehicle is (i) zero; or the cost price is unable to be established to the satisfaction of the Commissioner by the person who acquires the vehicle; or at the time the vehicle is acquired, the cost price to the person who acquires the vehicle is less than the market value because of an arrangement between that person and an associated person, and that arrangement has the purpose of defeating the intent and application of the FBT rules.
(iii) Despite clause 8(a), a person who in a quarter, tax year, or income year provides a beneﬁt that is valued under clause 1 may choose to value the vehicle on the basis of its cost price exclusive of GST or its tax value calculated exclusive of GST using clause 1 as modiﬁed by clause 10.
The following paragraphs apply to a person who values a ve- hicle on the basis of its cost price exclusive of GST or its tax value calculated exclusive of GST: (a) the terms ‘cost price’ and ‘tax value’ in clause 1 do not include an amount of GST payable: the references to 5% in clause 1 are treated as if they were references to a percentage calculated using the for- mula— 5 + (5 × rate of GST applying on last day of relevant quarter): the references to 9% in clause 1 are treated as if they were references to a percentage calculated using the for- mula— 9 + (9 × rate of GST applying on last day of relevant quarter): (b) (c) 9 10 3118 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 5 (d) (e) the references to 20% in clause 1 are treated as if they were references to a percentage calculated using the for- mula— 20 + (20 × rate of GST applying on last day of relevant tax year or corresponding income year): the references to 36% in clause 1 are treated as if they were references to a percentage calculated using the for- mula— 36 + (36 × rate of GST applying on last day of relevant tax year or corresponding income year).
11 When a vehicle is leased or rented to the person after it has been leased or rented to another person (the other person), the cost price of a vehicle is its market value at the time it is ﬁrst leased or rented to the person if— (a) (b) the person is not associated with the other person; and the person is not associated with the lessor or owner of the vehicle; and the employee is not the lessor or owner of the vehicle; and the employee is not associated with the lessor or owner of the vehicle.
(c) (d) 12 If the vehicle is leased or rented by the person from another person and the lessee requests that the lessor disclose the cost price or tax value of the vehicle for the lessor, the lessor must disclose to the lessee the information requested.

13 The minimum tax value of a motor vehicle to which this sched- ule applies is $8,333.
3119 Schedule 6 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 6 Prescribed rates: PIE investments and retirement scheme contributions ss CX 50B, HM 56 Schedule 6: inserted, on 1 April 2010 (applying to income years beginning on or after 1 April 2010), by section 124(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

1 PIE investments The prescribed investor rate for a person who is an investor in a multi-rate PIE is set out in table 1.
Table 1 Row Conditions Prescribed rate 1 2 3 4 For a natural person who is resident in New Zealand, other than a person described in row 4 or 6.

For a non-resident person other than a person de- scribed in row 7B or 9.

0.280 0.280 For a person who— (a) is resident in New Zealand and who derives income for the relevant tax year as a trustee of a trust other than a trust with income that is exempt income under section CW 41 or CW 42; and (b) notiﬁes this rate for the relevant tax year.
0.280 For a natural person who is resident in New Zealand and is not a person described in row 6 and who, in either of the 2 income years before the relevant tax year, derives— (a) (b) $48,000 or less in taxable income; and $70,000 or less in the sum of their tax- able income and attributed PIE income after subtracting any attributable PIE loss 0.175 5 For a person who— (a) is resident in New Zealand and derives in- come for the relevant tax year as a trustee of a trust other than a trust with income that is exempt income under section CW 41 or CW 42; and (b) notiﬁes this rate for the relevant tax year.
0.175 3120 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 6 Row Conditions 6 For a natural person who is resident in New Zealand and who, in either of the 2 income years before the relevant tax year, derives— Prescribed rate (a) (b) $14,000 or less in taxable income; and $48,000 or less in the sum of their tax- able income and attributed PIE income after subtracting any attributable PIE loss.
0.105 7 For a person who— (a) is resident in New Zealand and derives in- come for the relevant tax year as a trustee of a testamentary trust to which section HC 37 applies other than a trust with income that is exempt income under section CW 41 or CW 42; and 7B 8 9 10 (b) notiﬁes this rate for the relevant tax year.

0.105 For a non-resident person who is a notiﬁed foreign investor in a foreign investment variable-rate PIE, see table 1B for the applicable rate for the amount of income.
For a person who is a zero-rated investor.

For a non-resident person who is a notiﬁed foreign investor in a foreign investment zero-rate PIE.

For a transitional resident who is an investor in a foreign investment zero-rate PIE.

variable 0.000 0.000 0.000 How to use this table Find the applicable condition, in the second column, in order to ﬁnd the relevant rate to apply, in the third column.
Schedule 6 table 1: substituted (with effect on 1 April 2010), on 7 September 2010, by section 122 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Schedule 6 table 1 row 1: amended, on 1 October 2010, by section 39(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 6 table 1 row 2: substituted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notiﬁed foreign investor in the PIE), by section 137(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 6 table 1 row 3: amended, on 1 October 2010, by section 39(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 6 table 1 row 4: amended, on 1 October 2010, by section 39(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

3121 Schedule 6 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 6 table 1 row 5: amended, on 1 October 2010, by section 39(e) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Schedule 6 table 1 row 6: amended, on 1 October 2010, by section 39(f) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 6 table 1 row 7: amended, on 1 October 2010, by section 39(g) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Schedule 6 table 1 row 7B: inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notiﬁed foreign investor in the PIE), by section 137(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 6 table 1 row 9: inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notiﬁed foreign investor in the PIE), by section 137(2) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).
Schedule 6 table 1 row 10: added, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notiﬁed foreign investor in the PIE), by section 137(2) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).
1B Foreign investment variable-rate PIEs and notiﬁed foreign investors A foreign investment variable-rate PIE must apply the pre- scribed investor rates set out in table 1B in relation to income attributed to notiﬁed foreign investors in the PIE.

Table 1B Row Amounts Prescribed rate 1 2 3 4 To the extent to which it is not fully imputed, a dividend derived from a company resident in New Zealand attributed to an investor who does not re- side in a country with which New Zealand has a double tax agreement.
An amount other than an amount referred to in rows 1, and 3 to 5, that has a source in New Zealand.

To the extent to which it is not fully imputed, a dividend derived from a company resident in New Zealand attributed to an investor who resides in a country with which New Zealand has a double tax agreement.

Interest derived under a ﬁnancial arrangement, be- ing an amount referred to in the deﬁnition of inter- est, paragraph (a) or (b), that has a source in New Zealand and is calculated under subpart EW.
0.3000 0.2800 0.1500 0.0144 3122 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 6 Row Amounts 5 6 7 A fully imputed dividend derived from a company resident in New Zealand.

A foreign-sourced amount.

An amount derived under a ﬁnancial arrangement that has a source in New Zealand other than an amount of interest referred to in row 4.
Prescribed rate 0.0000 0.0000 0.0000 Schedule 6 clause 1B: inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notiﬁed foreign investor in the PIE), by section 137(3) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).

2 Retirement scheme contributions The retirement scheme prescribed rate for a person in relation to a retirement scheme contribution made for them is set out in table 2.
Table 2 Row Conditions Prescribed rate For a person other than a person described in any of rows 2 to 7.

0.330 For a person who, in either of the 2 income years before the income year in which the contribution is made, derives more than $48,000 but not more than $70,000 in taxable income.
0.300 For a person who is not a person described in row 2 and who, in either of the 2 income years before the income year in which the contribution is made, de- rives more than $14,000 but not more than $48,000 in taxable income.

For a person who is not a person described in row 2 or 3 and who, in either of the 2 income years before the income year in which the contribution is made, derives taxable income of $14,000 or less.
For a non-resident person to whom a distribution of no more than $200 is made by a retirement scheme contributor that is a Maori authority.

0.175 0.105 0.105 3123 Schedule 6 Income Tax Act 2007 Row Conditions Reprinted as at 29 May 2012 Prescribed rate 6 7 For a non-resident person who supplies a retirement scheme contributor that is a Maori authority with a notice under section 28C of the Tax Administration Act 1994.
For a non-resident person in relation to a contribu- tion that consists of non-resident passive income.

0.105 0.000 How to use this table Find the applicable condition in the second column, in order to ﬁnd the rele- vant rate to apply, in the third column.

Schedule 6 table 2 row 1: amended, on 1 October 2010, by section 40(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 6 table 2 row 2: amended, on 1 October 2010, by section 40(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Schedule 6 table 2 row 3: amended, on 1 October 2010, by section 40(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Schedule 6 table 2 row 4: amended, on 1 October 2010, by section 40(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Schedule 6 table 2 row 5: amended, on 1 October 2010, by section 40(e) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Schedule 6 table 2 row 6: amended, on 1 October 2010, by section 40(f) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
3124 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 10 Schedule 10 ss EE 40, EE 41, EZ 14, EZ 15 Straight-line equivalents of diminishing value rates of depreciation Column 1 Diminishing value depreciation rate (%) Column 2 Straight-line equivalent (%) Schedule 10 Income Tax Act 2007 Reprinted as at 29 May 2012 Column 1 Diminishing value depreciation rate (%) Column 2 Straight-line equivalent (%) Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 10 Column 1 Diminishing value depreciation rate (%) Column 2 Straight-line equivalent (%) Schedule 10 Income Tax Act 2007 Reprinted as at 29 May 2012 Column 1 Diminishing value depreciation rate (%) Column 2 Straight-line equivalent (%) 72 73 74 75 76 77 78 79 80 81 82 72 73 74 75 76 77 78 79 80 81 82 100 100 3128 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 11 Schedule 11 New banded rates of depreciation ss EE 27, EE 28 Other assets (excluding ﬁxed life intangible property, excluded depreciable property, and buildings) Buildings Column 1 D.V.
rate (%) 100 67 50 40 30 25 20 16 13 10 8 6 4 2 Column 2 Straight-line rate (%) Column 3 D.V.
rate (%) Column 4 Straight-line rate (%) Schedule 12 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 12 ss DB 46, EC 34, EC 35, EE 30, EZ 23 Old banded rates of depreciation Column 1 Diminishing value depreciation rate (%) Column 2 Straight-line equivalent (%) Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 13 Schedule 13 Depreciable land improvements s EE 7 airport runways bores and wells bridges chimneys culverts dams fences hardstanding reservoirs retaining walls roads spillways swimming pools tanks tunnels wharves pipes purpose-built surfaces for outdoor sports facilities Schedule 13: amended (with effect on 1 April 2008), on 6 October 2009, by section 581(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 13: amended (with effect on 1 April 2008), on 6 October 2009, by section 581(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

3131 Schedule 14 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 14 ss DZ 11, EE 43, EE 2, EZ 12 Depreciable intangible property Schedule 14 heading: amended, on 1 April 2008, by section 557 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
the right to use a copyright the right to use a design or model, plan, secret formula or process, or other like property or right a patent or the right to use a patent a patent application with a complete speciﬁcation lodged on or after 1 April 2005 the right to use land the right to use plant or machinery the copyright in software, the right to use the copyright in soft- ware, or the right to use software the right to use a trademark management rights and licence rights created under the Radiocommunications Act 1989 a consent granted under the Resource Management Act 1991 to do something that otherwise would contravene sections 12 to 15 of that Act (other than a consent for a reclamation), being a consent granted in or after the 1996–97 tax year the copyright in a sound recording, if the copyright was pro- duced or purchased by the taxpayer on or after 1 July 1997, and copies of the recording have been sold or offered for sale to the public plant variety rights granted under the Plant Variety Rights Act 1987 or similar rights given similar protection under the laws of a country or territory other than New Zealand a right to use plant variety rights granted under the Plant Variety Rights Act 1987 or a similar right under the laws of a country or territory other than New Zealand 3132 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 17 Schedule 17 Types and classes of livestock ss EC 15, YA 1 Column 1 Types of livestock Beef cattle Dairy cattle Deer Column 2 Classes of livestock Beef breeds and beef crosses Rising 1 year heifers Rising 2 year heifers Mixed-age cows Rising 1 year steers and bulls Rising 2 year steers and bulls Rising 3 year and older steers and bulls Breeding bulls Friesian and related breeds Rising 1 year heifers Rising 2 year heifers Mixed-age cows Rising 1 year steers and bulls Rising 2 year steers and bulls Rising 3 year and older steers and bulls Breeding bulls Jersey and other dairy breeds Rising 1 year heifers Rising 2 year heifers Mixed-age cows Rising 1
 year steers and bulls Rising 2 year and older steers and bulls Breeding bulls Red deer Rising 1 year hinds Rising 2 year hinds Mixed-age hinds Rising 1 year stags Rising 2 year and older stags (non-breeding) Breeding stags Wapiti, elk, and related crossbreeds Rising 1 year hinds Rising 2 year hinds Mixed-age hinds Rising 1 year stags Rising 2 year and older stags (non-breeding) Breeding stags 3133 Schedule 17 Income Tax Act 2007 Reprinted as at 29 May 2012 Column 1 Types of livestock Column 2 Classes of livestock Other breeds Rising 1 year hinds Rising 2 year hinds Mixed-age hinds Rising 1 year stags Rising 2 year and older stags (non-breeding) Breeding stags Angora and angora crosses (mohair producing) Rising 1 year does Mixed-age does Rising 1 year bucks (non-breeding)/wethers Bucks (non-breeding)/wethers over 1 year Breeding bucks Other ﬁbre and meat producing goats (cashmere or cashgora producing) Rising 1 year does Mixed-age does Rising 1 year bucks (non-breeding)/wethers Bucks (non-breeding)/wethers over 1 year Breeding bucks Milking (dairy) goats Rising 1 year does Does over 1 year Breeding bucks Other dairy goats Breeding sows less than 1 year of age Breeding sows over 1 year of age Breeding boars Weaners less than 10 weeks of age (excluding suck- lings) Growing pigs 10 to 17 weeks of age (porkers/baconers) Growing pigs over 17 weeks of age (baconers) Ewe hoggets Ram and wether hoggets Two-tooth ewes Mixed-age ewes (rising 3 year and rising 4 year ewes) Rising 5 year and older ewes Mixed-age wethers Breeding rams Goats Pigs Sheep 3134 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 18 Schedule 18 Categories of livestock for which national standard costs to be declared ss EC 23, EC 24 Column 1 Column 2 Column 3 Types of livestock Categories for which national standard costs to be declared Beef cattle Rising 1 year Types of costs to be declared Breeding, rearing, and growing Rising 2 year Rearing and growing Dairy cattle Deer Goats (dairy) Rising 3
 year male non-breeding cattle (all breeds) Purchased bobby calves Rising 1 year Rising 2 year Rising 1 year Rising 2 year Rising 1 year Rearing and growing Rearing and growing Breeding, rearing, and growing Rearing and growing Breeding, rearing, and growing Rearing and growing Breeding, rearing, and growing Rising 2 year Rearing and growing Goats (meat and ﬁbre) Rising 1 year Breeding, rearing, and growing Pigs Rising 2 year Rearing and growing Weaners to 10 weeks of age Breeding, rearing, and growing Growing pigs 10 to 17 weeks of age Rearing and growing Sheep Rising 1 year Breeding, rearing, and growing Rising 2 year Rearing and growing 3135 Schedule 19 Income Tax Act 2007 Schedule 19 Reprinted as at 29 May 2012 ss CB 28, DB 46, EK 2, EK 11, EK 12, EK 20, EK 23 Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant Part A Expenditure relating to activity or improvement to land expenditure on investigating and testing locations and methods, before a decision is made to use a location or method, for an activity or improvement that is intended to avoid, remedy, or mitigate future detrimental effects on the environment from the discharge of a contaminant expenditure, in the construction of an improvement on land in New Zealand, incurred in order to avoid or mitigate future detrimental effects on the environment from the discharge of a contaminant expenditure on screen planting, on land in New Zealand, in- curred in association with the construction of an improvement to the land that is intended to avoid, or mitigate future detri- mental effects on the environment from the discharge of a con- taminant expenditure on riparian planting, on land in New Zealand, in- curred in order to avoid or mitigate future detrimental effects on the environment from the discharge of a contaminant expenditure on an activity that is intended to avoid or mitigate the future discharge of a contaminant 3136 Reprinted as at 29 May 2012
 Income Tax Act 2007 Schedule 19 Part B Expenditure relating to monitoring, remedies, and mitigation expenditure related to monitoring the discharge of a contam- inant expenditure related to monitoring detrimental effects on the environment from the discharge of a contaminant expenditure, incurred after the discharge of a contaminant, on avoiding, remedying, or mitigating detrimental effects on the environment from the discharged contaminant expenditure, incurred after the discharge of a contaminant, on removing an improvement to land in New Zealand for the pur- pose of avoiding, remedying, or mitigating detrimental effects on the environment from the discharged contaminant expenditure, incurred after the discharge of a contaminant, on the installation of impermeable surfaces on land in New Zealand with the purpose of avoiding, remedying, or mitigat- ing detrimental effects on the environment from the discharged contaminant expenditure, incurred after the discharge of a contaminant, on replanting land in New Zealand in association with expend- iture to avoid, remedy, or mitigate detrimental effects on the environment from the discharged contaminant expenditure, incurred in the cessation of a business, on dispos- ing of a stored substance that is a potential contaminant in a way that avoids detrimental effects on the environment Part C Excluded expenditure expenditure related to land reclamation 3137 Schedule 19 Income Tax Act 2007 Reprinted as at 29 May 2012 Part C—continued 2 3 expenditure relating to dredging, other than dredging for the principal purpose of remedying or mitigating detrimental ef- fects on the environment from a discharged contaminant expenditure related to the acquisition of land 3138 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 20 Schedule 20 ss DO 4, DO 5, DO 11, DO 12, DO 13, DP 3, DZ 17, DZ 18, YA 1 Expenditure on farming, horticultural, aquacultural, and forestry improvements Improvement Part A Farming unless clause 2
 applies, preparation of the land for farming or agriculture, including cultivation and grassing regrassing and fertilising all types of pasture in the course of a signiﬁcant capital activity that relates to a type of pasture with an estimated useful life of more than 1 year draining of swamp or low-lying lands construction of access roads or tracks to or on the land construction of dams, stopbanks, irrigation or stream diversion channels, or other improvements for the purpose of conserving or conveying water for use on the land or for preventing or combating soil erosion, other than planting or maintaining trees, whether or not on the land, for the purpose of providing shelter to the land construction of earthworks, ponds, settling tanks, or other similar improvements mainly for the pur- pose of the treatment of waste products in order to prevent or combat pollution of the environment sinking of bores or wells for the purpose of supply- ing water for use on the land construction of aeroplane landing strips to facilitate aerial topdressing of the land planting of non-listed horticultural plants on the land (see section 44C of the Tax Administration Act 1994) erection on the land of electric power lines or tele- phone lines Percentage of diminished value of improvement allowed as deduction 6 45 6 6 6 6 6 6 12 12 3139 Schedule 20 Income Tax Act 2007 Improvement 11 12 13 construction on the land of feeding platforms, feed- ing yards, plunge sheep dips, or self-feeding ensi- lage pits construction on the land of supporting frames for growing crops construction on the land of structures for shelter purposes Part B Freshwater ﬁsh farming drilling of water bores draining of land or the excavating of sites for ponds, races, or tanks construction of ponds, settling ponds, sluices, or tanks of impervious materials to conduct or contain waters races, supply and installation of pipes for water reticula- tion construction of access paths, embankments, service
 paths, walkways, or walls construction of efﬂuent ponds supply and installation of bafﬂes or screens for the containing or excluding of ﬁsh construction of fencing on the ﬁsh farm Part C Mussel farming acquisition, preparation, and mooring of pontoons or rafts or other ﬂoating structures for collecting spat acquisition, mooring, and outﬁtting of moored ﬂoating platforms or longlines from which the collected spat is suspended for subsequent growth collecting and depositing of shell or other suitable material on the sea bed to create spatting surfaces 3140 Reprinted as at 29 May 2012 Percentage of diminished value of improvement allowed as deduction 12 12 12 6 6 6 6 6 6 12 12 24 24 24 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 20 Improvement Part D Rock oyster farming acquisition and preparation of spatting sticks construction and erection of posts, rails, or other structures for the holding of spatting sticks during spat catching and maturing construction of fences) fences (including breakwater Part E Scallop farming acquisition, preparation, and mooring of ﬂoating structures for collecting spat acquisition, mooring, and outﬁtting of longlines from which the collected spat is suspended for sub- sequent growth Part F Sea-cage salmon farming acquisition, preparation, and mooring of pontoons or rafts or other ﬂoating structures for securing or protecting cages or other containment vessels acquisition, preparation, and placing of equipment or structures, including cages, nets, tanks, or other vessels, for the containment of live salmon acquisition and placing of buoys and ropes used in the breeding or maturing of salmon Part G Forestry felling, clearing, destruction, or removal of timber, stumps, scrub, or undergrowth on the land in the preparation of the land for the planting of trees on the land eradication or extermination, to enable the planting of trees on the land, of animal or vegetable pests on the land 1 2 3 1 2 1 2 3 1 2 Percentage of
 diminished value of improvement allowed as deduction 24 24 24 24 24 24 24 24 6 6 3141 Schedule 20 Income Tax Act 2007 Improvement destruction, to enable the planting of trees on the land, of weeds or plants detrimental to the land draining of swamp or low-lying lands in the prep- aration of the land for the planting of trees on the land construction of roads to or on the land (including any culverts or bridges necessary for the construc- tion), when the roads are formed and wholly or mainly metalled or sealed construction of roads to or on the land (including any culverts or bridges necessary for the construc- tion), when the roads— (a) are not access tracks to which section DP 1(1)(h) applies; and are 1 of the following: (i) roads that are formed and partially metalled or sealed; or roads that are not metalled or sealed (ii) (b) construction of dams, stopbanks, irrigation or stream diversion channels, or other improvements for the purpose of conserving or conveying water for use on the land or for preventing or combating soil erosion repair of ﬂood or erosion damage sinking of bores or wells for the purpose of supply- ing water for use on the land construction of aeroplane landing strips to facilitate aerial topdressing or disease control work or ﬁre- ﬁghting on the land construction on the land of fences, including the purchase of wire or wire netting for the purpose of making new or existing fences rabbit-proof erection on the land of electric power lines or tele- phone lines Reprinted as at 29 May 2012 Percentage of diminished value of improvement allowed as deduction 6 6 6 24 6 6 6 6 12 12 Schedule 20 part G clause 6(a): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 20: amended (with effect on 1 April 2008), on 6 October 2009, by section 582(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

3142 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 20 Schedule 20: amended (with effect on 1 April 2008), on 6 October 2009, by section 582(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
3143 Schedule 21 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 21 LH 3(1), LH 5(3), (4), LH 7(2), LH 8 Expenditure and activities related to research and development [Repealed] Schedule 21: repealed, on 1 October 2009, by section 22 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
3144 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 24 Schedule 24 International tax rules: grey list countries Schedule 24 heading: amended (with effect on 30 June 2009), on 6 October 2009, by section 584 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
ss DZ 11, YA 1 Part A Grey list countries Australia, excluding the Territory of Norfolk Island Canada Federal Republic of Germany Japan United Kingdom of Great Britain and Northern Ireland United States of America, excluding its possessions and terri- tories Norway Kingdom of Spain Part B Features of the taxation law of countries speciﬁed in Part A Any exemption from income tax for income derived from busi- ness activities carried on outside the country.
In the case of Australia, any special allowances, reliefs, or exemptions with respect to offshore banking units.

In the case of Canada, any special allowances, reliefs, or ex- emptions with respect to international banking centres.

In the case of the Federal Republic of Germany, any special allowances, reliefs, or exemptions with respect to regional lo- cated investment in the former German Democratic Republic or in West Berlin.
In the case of the United Kingdom of Great Britain and North- ern Ireland, any special allowances, reliefs, or exemptions with respect to activities carried on in enterprise zones.

3145 Schedule 24 Income Tax Act 2007 Reprinted as at 29 May 2012 Part B—continued 6 7 In the case of Canada, any special allowances, reliefs, or ex- emptions provided to non-resident owned investment corpor- ations pursuant to section 133 of the Income Tax Act (Canada).
Canary Islands: Ceuta: In the case of the Kingdom of Spain, any special allowances, reliefs, or exemptions with respect to activities that are carried on in, or by an enterprise registered in, the following: (a) (b) (c) Melilla: (d) Alava: Guipúzcoa: (e) (f) Vizcaya: (g) Navarra.
3146 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 25 Schedule 25 ss CQ 5, DN 6, EX 28, EX 29, EX 31, EX 32, EX 35–EX 39, EX 46, EZ 32 Foreign investment funds Schedule 25 heading: amended (with effect on 1 April 2008), on 6 October 2009, by section 585(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Part A Entities treated as foreign investment funds Part B Foreign entities to which the FIF exemptions do not apply Schedule 25 Part B heading: substituted (with effect on 1 April 2008), on 6 Oc- tober 2009, by section 585(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Part C Foreign entities for which accounting proﬁts method may not be used [Repealed] Schedule 25 Part C heading: repealed (with effect on 1 July 2011), on 7 May 2012 (applying for the income years beginning on or after 1 July 2011), by section 137(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
3147 Schedule 26 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 26 Low tax jurisdictions or territories s LZ 1 Part A All companies resident in following countries or territories Andorra Angola Anguilla Antigua and Barbuda Bahamas Bahrain Barbados Bermuda British Channel Islands British Virgin Islands Campione Cayman Island Cook Islands Costa Rica Cyprus Djibouti Dominica Ecuador French Polynesia Greece Grenada Gibraltar Guatemala Hong Kong Isle of Man Jamaica Jordan Kuwait Lebanon Liberia Liechtenstein Luxembourg 32 33 Macau 34 Madeira 35 Maldives 36 Marshall Islands 37 Monaco 38 Montserrat Nauru 39 Netherlands Antilles 40 and/or Aruba Nevis New Caledonia Norfolk Island Oman Palau Panama Puerto Rico Saint Helena Saint Kitts Saint Lucia Saint Vincent San Marino Seychelles Solomon Islands Sri Lanka Switzerland Turks and Caicos Islands United Arab Emirates Uruguay Vanuatu Venezuela 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 26 Part B Speciﬁed companies resident in following countries or territories 1 Belgium (a) 2 3 Brunei Ireland (b) (a) (a) (b) (c) (d) (e) companies that are regarded as Foreign Sales Corporations by the United States of America and which therefore qualify for reduced Bel- gian taxation: companies approved under Royal Decree No 187 of 30 December 1982 as Co-ordin- ation Centres (as deﬁned by the original Royal Decree or by subsequent amending laws) companies deriving income from sources out- side Brunei companies obtaining relief or exemption from tax under Part 5 of the Corporation Tax Act 1976 or section 43 of the Finance Act 1980 (proﬁts from trading within Shannon Airport): companies obtaining relief or exemption from tax under Part 4 of the Corporation Tax Act 1976 or section 42 of the Finance Act 1980 (proﬁts from exporting certain goods): companies certiﬁed by the Minister of Fi- nance to provide international
 ﬁnancial ser- vices or to carry on any other activities in the Custom House Docks area: companies deriving income or proﬁts from goods manufactured in Ireland: companies deriving income or capital gains from the following operations: (i) life assurance business with policy- holders and annuitants who reside outside Ireland: the management of the investments of 1 or more unit trusts where all the unit holders are resident outside Ireland: (ii) 3149 Schedule 26 Income Tax Act 2007 Reprinted as at 29 May 2012 Part B—continued companies obtaining initial allowances or ac- celerated writing down allowances for quali- fying assets of ﬁnancial-type operations car- ried out in the Shannon Free Airport Zone or any designated urban renewal area: companies undertaking administrative or liai- son activities companies obtaining relief or exemption from tax under the tax free zone or tax free factory scheme companies having income granted exemption from tax under paragraph 11, schedule 1 of the Income Tax Act 1973 companies exempt from tax in relation to shipping: companies subject to tax at 5% in relation to inward reinsurance: companies obtaining relief or exemption from tax under the Labuan Offshore Business Ac- tivity Tax Act 1990: companies obtaining relief or exemption from tax under the Offshore Banking Act 1990: companies obtaining relief or exemption from tax under the Offshore Companies Act 1990: companies obtaining relief or exemption from tax under the Offshore Insurance Act 1990: companies obtaining relief or exemption from tax under the Labuan Trust Companies Act 1990: companies obtaining relief or exemption from tax under the Promotion of Investments (Criteria for the Grant of Pioneer Status to a Small-Scale Company) Order 1990 companies obtaining relief or exemption from tax under the Malta International Business Activities Act 1988: companies obtaining relief or exemption from tax under the Offshore Trusts Act 1988: (f) (g) (a) (a) (a) (b) (c) (d) (e) (f) (g) (h)
 (a) (b) 4 Fiji 5 Kenya 6 Malaysia 7 Malta 3150 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 26 Part B—continued (c) (d) 8 Netherlands (a) (b) (c) (d) 9 Philippines (a) (b) (c) 10 Singapore (a) (b) companies obtaining relief or exemption from tax under the Malta Freeports Act 1989: companies obtaining relief or exemption from tax under the Merchant Shipping Act 1973 companies exempt from tax under the Decree for the Avoidance of Double Taxation 1965 for foreign source business proﬁts: companies that have obtained a participation exemption under article 13 or 18 of the Cor- porate Income Tax Act 1969: companies that are regarded as Foreign Sales Corporations by the United States of Amer- ica: companies that have obtained an advance rul- ing from the Ministry of Finance in relation to income earned with respect to inter-company loans companies that are regional headquarters companies: companies that operate as an Offshore Bank- ing Unit or a Foreign Currency Deposit Unit: companies that receive interest on deposits with a Foreign Currency Unit, or other inter- est subject to reduced rates of tax under the National Internal Revenue Code companies subject to the concessionary rate of tax for insurance and reinsurance of risks outside Singapore: companies that operate Asian Currency Units which have income— (i) taxed at a concessionary rate by virtue of section 43A, 43B, or 43C of the In- come Tax Act; or exempted from tax under the Income Tax (Income Arising from Syndicated Offshore Loans) Regulations 1984: (ii) 3151 Schedule 26 Income Tax Act 2007 Reprinted as at 29 May 2012 (c) (d) (e) 11 Samoa (a) (b) Part B—continued companies that are exempt from tax on the income of a shipping enterprise: companies that derive any income to which section 43E of the Income Tax Act applies (headquarters companies): companies that are incorporated in Singapore but not managed and controlled from Singa- pore and that derive any income from sources outside Singapore
 companies that by virtue of section 28(a) of the Off-Shore Banking Act 1987 are exempt from income tax in relation to an offshore banking business conducted within Samoa: companies that by virtue of section 28(b) of the Off-Shore Banking Act 1987 are exempt from income tax in relation to dividends or earnings or interest derived in relation to shares or securities of a licensee under that Act Schedule 26 part B clause 3(f): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 26 part B clause 11(a): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 26 part B clause 11(b): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
3152 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 27 Schedule 27 Countries and types of income with unrecognised tax ss LJ 1, LK 2 Schedule 27 heading: amended (with effect on 30 June 2009), on 6 October 2009, by section 586 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Country or territory Types of income 3153 Schedule 28 Income Tax Act 2007 Reprinted as at 29 May 2012 1 2 3 Schedule 28 Requirements for complying fund rules RD 66 Schedule 28: inserted, on 1 April 2008, by section 136 of the Taxation (Kiwi- Saver) Act 2007 (2007 No 110).
KiwiSaver rules The ﬁrst requirement is that the rules are the same, though modiﬁed as necessary, as the rules for KiwiSaver schemes set out in— (a) (b) sections 101G and 196 of the KiwiSaver Act 2006; and schedule 1, clauses 2, 4(1) to (4), 7, 9, and 17 of that Act.
Withdrawals The second requirement is that the rules— (a) allow a withdrawal in some or all of the circumstances described in regulations made under section 229(1) of the KiwiSaver Act 2006 and the rules for KiwiSaver schemes in schedule 1, clauses 8 and 10 to 14 of the KiwiSaver Act 2006, modiﬁed as necessary, or in none of those circumstances; and do not allow a withdrawal under any circumstances other than those described in paragraph (a) or clause 1; and require the trustees, if the employee asks, to pay any withdrawal allowed under this clause and clause 1 as a lump sum, as if the withdrawal were a permitted with- drawal to which schedule 1, clause 5 of the KiwiSaver Act 2006 applies, modiﬁed as necessary.
(b) (c) Transfers The third requirement is that the rules require— (a) a transfer, if the employee asks, of some or all of an em- ployee’s superannuation accumulation to another com- plying superannuation fund or to a KiwiSaver scheme, and for the latter when the requirements of the Kiwi- Saver Act 2006 are met; and that the complying fund rules apply to an employee’s superannuation accumulation if it is transferred to an- other complying superannuation fund under paragraph (a); and (b) 3154 Reprinted as at 29 May 2012 (c) (d) Income Tax Act 2007 Schedule 28 a transfer of an employee’s superannuation accumula- tion to a KiwiSaver scheme, if the employee does not ask for a transfer under paragraphs (a) and (b), and the employee— (i) is no longer eligible to be a member of their com- plying superannuation fund: (ii) may not remain a member for any reason, but this paragraph does not apply to a transfer under para- graphs (a), (b), and (d), or a withdrawal of some or all of an employee’s superannuation accumu- lation under these rules; and a transfer of an employee’s superannuation accumula- tion to a KiwiSaver scheme, if the FMA revokes ap- proval of the superannuation fund as a complying super- annuation fund and the accumulation is not transferred to another complying superannuation fund and is not subject to these rules.
4 5 Notiﬁcation The fourth requirement is that the rules require that— (a) the Commissioner is notiﬁed if the employee’s super- annuation accumulation must be transferred under clause 3(c) and (d): the fund provider is notiﬁed if the employee’s super- annuation accumulation is transferred to another com- plying superannuation fund under clause 3(a).
(b) Notiﬁcation details For the purposes of clause 4,— (a) (b) notiﬁcation under clause 4(a) must include the name, address, and tax ﬁle number of the employee, the name and address of their employer, and the name and tax ﬁle number of the employee’s complying superannuation fund: notiﬁcation under clause 4(b) must include— (i) notice of any written evidence given to the old fund provider under section MK 2(2): the amount of tax credits received by the old fund provider under subpart MK: information held by the old fund provider that would be relevant to the new provider in mak- (ii) (iii) 3155 Schedule 28 Income Tax Act 2007 Reprinted as at 29 May 2012 ing a claim under section 68C of the Tax Ad- ministration Act 1994, such as information about the periods for which claims have already been made.
Age restriction The ﬁfth requirement is that the rules prevent a person over the qualiﬁcation age for New Zealand superannuation from joining.

Minimum contributions The sixth requirement is that the rules require, as a minimum, contributions to be deducted for an employee at the rate of 2% of gross salary or wages (as deﬁned in section 4 of the KiwiSaver Act 2006).
Funding beneﬁts The seventh requirement is that the rules require that an em- ployee’s superannuation accumulation is used to fund beneﬁts that are calculated only by reference to the amount of the ac- cumulation.

Continuation as member The eighth requirement is that the rules commit an employee to continue to be a member unless otherwise provided by clauses 1 to 8.

6 7 8 9 Schedule 28: amended, on 1 May 2011, by section 85(1) of the Financial Markets Au- thority Act 2011 (2011 No 5).
Schedule 28: amended (with effect on 1 April 2009), on 6 October 2009, by section 587 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 28: amended, on 1 April 2009, by section 57 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).
3156 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 29 Schedule 29 Portfolio investment entities: listed investors ss HM 21, HM 22 Schedule 29: inserted, on 1 April 2010, by section 588 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Part A A PIE or an entity that qualiﬁes for PIE status.

A foreign PIE equivalent.

A life insurer.

The New Zealand Superannuation Fund.


The Accident Compensation Corporation, or a Crown entity subsidiary of the Corporation.

The Earthquake Commission.

Auckland Council.

A boutique investor class, treating interests combined under section HM 16 as held by 1 person.

A community trust.

9 Schedule 29 part A item 7: amended (with effect on 1 November 2010), on 21 December 2010, by section 138 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Schedule 29 part A item 9: added (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 123(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Part B A superannuation fund established under the proposal for the restructuring of the National Provident Fund required by the National Provident Fund Restructuring Act 1990.
The fund established by the Government Superannuation Fund Act 1956.

A public unit trust.

[Repealed] A superannuation fund that— (i) (ii) would, if treated as a unit trust, meet the requirements of 1 or more of paragraphs (a) and (c) to (e) of the def- inition of public unit trust; and was in existence before 17 May 2006; and 3157 Schedule 29 Income Tax Act 2007 Reprinted as at 29 May 2012 Part B—continued (iii) has no investor, other than its manager or trustee, who can control its investment decisions.
Schedule 29 part B item 4: repealed (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 123(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
3158 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 31 Schedule 31 Annualised equivalent amount for Part M ss MF 3, MF 7 Column 1 Annual amount, calculated in accordance with section MF 3(2)(a) Amount does not exceed $36,350 Amount exceeds $36,350 but does not exceed $38,000 Amount exceeds $38,000 but does not exceed $39,500 Amount exceeds $39,500 but does not exceed $41,000 Amount exceeds $41,000 but does not exceed $42,500 Amount exceeds $42,500 but does not exceed $44,000 Amount exceeds $44,000 but does not exceed $45,500 Amount exceeds $45,500 but does not exceed $47,000 Amount exceeds $47,000 but does not exceed $48,500 Amount exceeds $48,500 but does not exceed $50,000 Amount exceeds $50,000 but does not exceed $51,500 Amount exceeds $51,500 but does not exceed $53,000 Amount exceeds $53,000 but does not exceed $54,500 Amount exceeds $54,500 but does not exceed $56,000 Amount exceeds $56,000 but does not exceed $57,500 Amount exceeds $57,500 but does not exceed $59,000 Amount exceeds $59,000 but does not exceed $60,500 Amount exceeds $60,500 but does not exceed $62,000 Amount exceeds $62,000 but does not exceed $63,500 Amount exceeds $63,500 but does not exceed $65,000 Amount exceeds $65,000 but does not exceed $66,500 Amount exceeds $66,500 but does not exceed $68,000 Amount exceeds $68,000 but does not exceed $69,500 Amount exceeds $69,500 but does not exceed $71,000 Amount exceeds $71,000 but does not exceed $72,500 Column 2 Annualised equivalent amount for section MF 3(2)(b) $ $36,350 38,000 39,500 41,000 42,500 44,000 45,500 47,000 48,500 50,000 51,500 53,000 54,500 56,000 57,500 59,000 60,500 62,000 63,500 65,000 66,500 68,000 69,500 71,000 72,500 3159 Schedule 31 Income Tax Act 2007 Column 1 Annual amount, calculated in accordance with section MF 3(2)(a) Amount exceeds $72,500 but does not exceed $74,000 Amount exceeds $74,000 but does not exceed $75,500 Amount exceeds $75,500 but does not exceed $77,000 Amount exceeds $77,000 but does not exceed $78,500 Amount exceeds $78,500 but does not
 exceed $80,000 Amount exceeds $80,000 but does not exceed $81,500 Amount exceeds $81,500 but does not exceed $83,000 Amount exceeds $83,000 but does not exceed $84,500 Amount exceeds $84,500 but does not exceed $86,000 Amount exceeds $86,000 but does not exceed $87,500 Amount exceeds $87,500 but does not exceed $89,000 Amount exceeds $89,000 but does not exceed $90,500 Amount exceeds $90,500 but does not exceed $92,000 Amount exceeds $92,000 but does not exceed $93,500 Amount exceeds $93,500 but does not exceed $95,000 Amount exceeds $95,000 but does not exceed $96,500 Amount exceeds $96,500 but does not exceed $98,000 Amount exceeds $98,000 but does not exceed $99,500 Amount exceeds $99,500 but does not exceed $101,000 Amount exceeds $101,000 but does not exceed $102,500 Amount exceeds $102,500 but does not exceed $104,000 Amount exceeds $104,000 but does not exceed $105,500 Amount exceeds $105,500 but does not exceed $107,000 Amount exceeds $107,000 but does not exceed $108,500 Amount exceeds $108,500 but does not exceed $110,000 Amount exceeds $110,000 but does not exceed $111,500 Amount exceeds $111,500 but does not exceed $113,000 3160 Reprinted as at 29 May 2012 Column 2 Annualised equivalent amount for section MF 3(2)(b) $ 74,000 75,500 77,000 78,500 80,000 81,500 83,000 84,500 86,000 87,500 89,000 90,500 92,000 93,500 95,000 96,500 98,000 99,500 101,000 102,500 104,000 105,500 107,000 108,500 110,000 111,500 113,000 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 31 Column 1 Annual amount, calculated in accordance with section MF 3(2)(a) Amount exceeds $113,000 but does not exceed $114,500 Amount exceeds $114,500 but does not exceed $116,000 Amount exceeds $116,000 but does not exceed $117,500 Amount exceeds $117,500 but does not exceed $119,000 Amount exceeds $119,000 but does not exceed $120,500 Amount exceeds $120,500 Column 2 Annualised equivalent amount for section MF 3(2)(b) $ 114,500 116,000 117,500 119,000 120,500 the number of dollars of the
 annual amount Schedule 31: amended (with effect on 1 April 2012), on 7 May 2012, by section 138 of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
Schedule 31: amended, on 1 October 2008, by section 52(a) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Schedule 31: amended, on 1 October 2008, by section 52(b) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Schedule 31: amended, on 1 October 2008, by section 52(c) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
Schedule 31: amended, on 1 October 2008, by section 52(d) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
3161 Schedule 32 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 32 ss DB 41, DV 12, LD 3, YA 1 Recipients of charitable or other public beneﬁt gifts Adventist Development and Relief Agency African Enterprise (New Zealand) Aid and Development Fund Akha Rescue Ministry Charitable Trust Alhay Buhay Foundation Trust Amnesty International Bangladesh Flood Appeal Trust Books for Africa Caritas Aotearoa-New Zealand Channel 2 Cyclone Aid for Samoa Cheboche Area Trust Incorporated Childfund New Zealand Limited Children on the Edge (NZ) Trust Christian Blind Mission International (New Zealand) Christian World Service Community Action Overseas (Oxfam NZ) CORSO (Incorporated) Cry for the World Foundation New Zealand Humanitarian Aid Fund Cure Kids Cyclone Ofa Relief Fund Cyclone Val Relief Fund DIPS’N Charitable Trust (International) Educational Aid for International Development Trust Board Four Sherpa Trust Global Hope Greater Mekong Subregion Tertiary Education Consortium Trust Habitat for Humanity New Zealand Limited Hamlin Charitable Fistula Hospitals Trust Help a Child Foundation New Zealand Hope Foundation Development Trust Hope International Charitable Trust 3162 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 32 Ingwavuma Orphan Trust Fund of New Zealand International Christian Aid (ICA) Jasmine Charitable Trust No 2 Karunai Illam Trust Kyrgyzstan New Zealand Rural Trust L Women of Africa Fund Limbs 4 All Charitable Trust Medicine Mondiale Mission Without Borders (NZ), Humanitarian Aid Account Mobility Equipment for the Needs of Disabled Trust Nelson Mandela Trust (New Zealand) New Zealand Disaster Assistance Response Team Trust New Zealand Good Samaritan Heart Mission to Samoa Trust New Zealand Jesuits in India Trust New Zealand Sports Foundation (Incorporated) NZ-Iraqi Relief Charitable Trust New Zealand Viet Nam Health Trust Open Home Foundation International Trust Operation Hope (Aid Ship to Africa) Operation Restore Hope Charitable Trust Operation Vanuatu Charitable Trust Partners Relief and
 Development NZ Plan New Zealand “Raphael” (The Ryder-Cheshire Foundations of New Zealand) Register of Engineers for Disaster Relief New Zealand RNZWCS Limited Ruel Foundation Sampoerna Foundation Limited Save the Children New Zealand (and its branches) Sport and Recreation New Zealand St Stanislas Charitable Trust of New Zealand Surf Aid International Incorporated Te Tuao Tawahi: Volunteer Service Abroad Incorporated Tender Trust 3163 Schedule 32 Income Tax Act 2007 Reprinted as at 29 May 2012 The Band Aid Box The Cambodia Charitable Trust The Bouganville Library Trust The Branch Foundation The Commonwealth Foundation The Destitute Children’s Home, Pokhara, Charitable Trust The Evangelical Alliance Relief Fund (TEAR Fund) The Fred Hollows Foundation (NZ) The Food Bank of New Zealand The Hillary Himalayan Foundation The Leprosy Mission New Zealand Incorporated The Mutima Charitable Trust The New Zealand Council of the Ramabai Mukti Mission Trust Board The New Zealand Rotary Clubs Charitable Trust The New Zealand Society for the Intellectually Handicapped (Incorp- orated) The Norman Kirk Memorial Trust Fund The Paciﬁc Leprosy Foundation The Palestine Children’s Relief Fund Charitable Trust The Red Cross Society Incorporated The Serious Road Trip Charitable Trust The Sir Edmund Hillary Trust The Sir Walter Nash Vietnam Appeal The Unions Aotearoa International Development Trust The United Nations International Children’s Emergency Fund (UNICEF) The Winston Churchill Memorial Trust The World Swim for Malaria Foundation (New Zealand) Together for Uganda Triyog Himalaya Trust UNHCR (United Nations High Commissioner for Refugees) Valehead Community Health Centre Trust Water for Survival Waterharvest Trust 3164 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 32 World Vision of New Zealand (Incorporated) Zonta International District 16 (New Zealand) Charitable Trust Schedule 32 Bright Hope International Trust: repealed, on 6 October 2009, by section 589(1) of the
 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 32 Childfund New Zealand Limited: inserted, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 32 Christian Children’s Fund of New Zealand Limited (CCFNZ): repealed, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Schedule 32 Cure Kids: inserted (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 124(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

Schedule 32 Education Aid for International Development Trust Board: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 32 Global Hope: inserted, on 6 October 2009, by section 589(2) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 32 Hamlin Charitable Fistula Hospitals Trust: inserted, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Schedule 32 Hope Foundation Development Trust: inserted, on 1 April 2008, by sec- tion 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 32 Hope International Charitable Trust: inserted, on 1 April 2008, by sec- tion 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Schedule 32 Ingwavuma Orphan Trust Fund of New Zealand: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 32 Jasmine Charitable Trust No 2: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(a) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).
Schedule 32 Kyrgyzstan New Zealand Rural Trust: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 32 L Women of Africa Fund: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 32 Limbs 4 All Charitable Trust: inserted, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 32 New Zealand Disaster Assistance Response Team Trust: inserted, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
3165 Schedule 32 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 32 New Zealand Good Samaritan Heart Mission to Samoa Trust: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(b) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 32 NZ-Iraqi Relief Charitable Trust: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(c) of the Taxation (Tax Admin- istration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 32 Operation Restore Hope Charitable Trust: inserted, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Schedule 32 Partners Relief and Development NZ: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 32 RNZWCS Limited: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(d) of the Taxation (Tax Administration and Re- medial Matters) Act 2011 (2011 No 63).
Schedule 32 Ruel Foundation: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(e) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 32 Te Tuao Tawahi: Volunteer Service Abroad Incorporated: inserted, on 21 December 2010, by section 139(1)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Schedule 32 Tender Trust: inserted, on 6 October 2009, by section 589(2) of the Tax- ation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 32 The Band Aid Box: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 32 The Bouganville Library Trust: inserted, on 1 April 2011 (applying for the 2011–12 to 2016–17 tax years), by section 139(1)(b) of the Taxation (GST and Re- medial Matters) Act 2010 (2010 No 130).

Schedule 32 The Branch Foundation: inserted, on 1 April 2011 (applying for the 2011–12 to 2016–17 tax years), by section 139(1)(c) of the Taxation (GST and Remed- ial Matters) Act 2010 (2010 No 130).
Schedule 32 The Cambodia Charitable Trust: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(f) of the Taxation (Tax Administra- tion and Remedial Matters) Act 2011 (2011 No 63).

Schedule 32 The Destitute Children’s Home, Pokhara, Charitable Trust: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 32 The Mutima Charitable Trust: inserted, on 1 April 2011 (applying for the 2011–12 to 2016–17 tax years), by section 139(1)(d) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Schedule 32 The Palestine Children’s Relief Fund Charitable Trust: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insur- ance, and Remedial Matters) Act 2009 (2009 No 34).
3166 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 32 Schedule 32 The Unions Aotearoa International Development Trust: inserted, on 1 April 2012 (applying for the 2012–13 and later tax years), by section 138(1)(g) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 32 The Volunteer Service Abroad (Incorporated): repealed, on 21 Decem- ber 2010, by section 139(1)(e) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
Schedule 32 The World Swim for Malaria Foundation (New Zealand): inserted, on 1 April 2008, by section 559 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 32 Triyog Himalaya Trust: inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Schedule 32 UNHCR (United Nations High Commissioner for Refugees): inserted, on 6 October 2009, by section 589(2) of the Taxation (International Taxation, Life In- surance, and Remedial Matters) Act 2009 (2009 No 34).
3167 Reprinted as at 29 May 2012 s YA 1 Schedule 36 Income Tax Act 2007 Schedule 36 State enterprises Agriquality New Zealand Limited Airways Corporation of New Zealand Limited Asure New Zealand Limited Crown Forestry Management Limited Electricity Corporation of New Zealand Limited Genesis Power Limited Government Property Services Limited Housing New Zealand Corporation Housing New Zealand Limited Landcorp Farming Limited Learning Media Limited Meridian Energy Limited Meteorological Service of New Zealand Limited Mighty River Power Limited New Zealand Post Limited Quotable Value Limited Radio New Zealand Limited Solid Energy of New Zealand Limited Television New Zealand Limited Terralink NZ Limited Timberlands West Coast Limited Transpower New Zealand Limited Works and Development Services Corporation (NZ) 3168 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 37 Schedule 37 Statutory producer boards s YA 1 New Zealand Horticulture Export Authority New Zealand Meat Board New Zealand Pork Industry Board 3169 Schedule 38 Income Tax Act 2007 Reprinted as at 29 May 2012 Schedule 38 Acts exempting income from tax: income included in family scheme income s MB 1 Schedule 38: inserted, on 1 April 2011, by section 140 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).
Arbitration (International Investment Disputes) Act 1979 Consular Privileges and Immunities Act 1971 Diplomatic Privileges and Immunities Act 1968 International Finance Agreements Act 1961 Pitcairn Trials Act 2002 3170 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 39 Schedule 39 Items for purposes of deﬁnition of special excluded depreciable property s EE 67 Schedule 39: inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 99(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Carports (hired out to householders) Portable huts Cool-stores and freezing chambers Slaughterhouses on farms Fowl houses Plastic hothouses and PVC tunnel houses Glasshouses Buildings affected by acid Milking sheds Roofed livestock yards Wintering barns and simple loaﬁng barns Milk powder buildings Temporary buildings Fish processing buildings Tannery buildings affected by acid Schedule 39: amended (with effect on 1 April 2011), on 29 August 2011 (applying for the 2011–12 and later income years), by section 139(1) of the Taxation (Tax Adminis- tration and Remedial Matters) Act 2011 (2011 No 63).
3171 Schedule 48 Income Tax Act 2007 Schedule 48 Enactments repealed Public Acts repealed Income Tax Act 2004 (2004 No 35) Reprinted as at 29 May 2012 s ZA 1 Regulations revoked Income Tax (Withholding Payments) Regulations 1979 (SR 1979/259) 3172 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Schedule 49 Enactments amended s ZA 2 Schedule 49: amended (with effect on 1 April 2008), on 6 October 2009, by section 590(a) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).
Schedule 49: amended (with effect on 1 April 2008), on 6 October 2009, by section 590(b) of the Taxation (International Taxation, Life Insurance, and Re- medial Matters) Act 2009 (2009 No 34).

Public Acts Animal Products Act 1999 (1999 No 93) Sections 22(1)(c) and 54(3)(a): “section OE 1 or section OE 2 of the Income Tax Act 2004” is replaced by “section YD 1 or YD 2 (excluding section YD 2(2)) of the Income Tax Act 2007” in each place where it appears.
Carter Observatory Act 1938 (1938 No 9) Section 22(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Charities Act 2005 (2005 No 39) Section 13(2)(a)(i): “section CW 34 of the Income Tax Act 2004” is replaced by “section CW 41 of the Income Tax Act 2007”.

Section 13(2)(a)(ii): “section CW 35 of the Income Tax Act 2004” is replaced by “section CW 42 of the Income Tax Act 2007”.
Section 13(3): “section CW 34 or section CW 35 of the Income Tax Act 2004” is replaced by “section CW 41 or CW 42 of the Income Tax Act 2007”.

Section 20(4): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Example after section 30(2): “section KC 5 of the Income Tax Act 2004” is replaced by “subpart LD of the Income Tax Act 2007” in each place where it appears.

Section 47(a)(ii): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 73(2): “section KC 5 of the Income Tax Act 2004” is replaced by “subpart LD of the Income Tax Act 2007”.

3173 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Child Support Act 1991 (1991 No 142) Section 2, deﬁnitions of employee and employer: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 2, deﬁnition of income from employment: “section OB 1 of the Income Tax Act 2004, and includes a payment made to a speci- ﬁed ofﬁce holder (as deﬁned in section OB 1 of the Income Tax Act 2004)” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of source deduction payment: replace by the following: “source deduction payment means a PAYE income payment (as deﬁned in section RD 3 of the Income Tax Act 2007)”.
Section 2, deﬁnition of withholding income: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Section 14(1)(ea): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 29(1)(b), deﬁnitions of tax year and taxable income: “sec- tion OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 30(5), deﬁnitions of gross married rate of invalid’s beneﬁt, gross married rate of unemployment beneﬁt, and gross single rate of invalid’s beneﬁt: “section NC 6(1D) of the Income Tax Act 2004” is replaced by “section RD 11(3) of the Income Tax Act 2007” in each place where it appears.

Sections 40(3)(ba)(ii), 44(1), 44A(1)(b), and 45(3)(a) to (c): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 55(1)(da): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 77: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 89B, deﬁnition of income, paragraph (a): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 89B, deﬁnition of income, paragraph (b): “and the Income Tax Act 2004” is inserted after “Income Tax Act 1994”.
3174 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Child Support Act 1991 (1991 No 142)—continued Section 90(1)(ca): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 165(1) and (3): “section OB 1 of the Income Tax Act 2004” is replaced by “YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 165(1): “the amount of any tax deduction made therefrom under the PAYE rules of the Income Tax Act 2004” is replaced by “the amount of any tax withheld or deducted under the PAYE rules of the Income Tax Act 2007”.

Section 166(2): “the amount of any tax deductions made under the PAYE rules of the Income Tax Act 2004” is replaced by “the amount of any tax withheld under the PAYE rules of the Income Tax Act 2007”.
Section 166(3): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Section 216(5): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Companies Act 1993 (1993 No 105) Schedule 7, clause 5, paragraphs (b) to (d): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Companies (Bondholders Incorporation) Act 1934–35 (1934–35 No 39) Section 37: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Consumer Guarantees Act 1993 (1993 No 91) Section 5(1)(c)(i): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Co-operative Companies Act 1996 (1996 No 24) Section 24(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

3175 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Corporations (Investigation and Management) Act 1989 (1989 No 11) Sections 71(7) and 71A(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Dairy Industry Restructuring Act 2001 (2001 No 51) Sections 151(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 152, words before paragraph (a): “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 152(c) and (e): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 152(e): “section OB 1” is replaced by “section YA 1”.
Section 154(2): “sections OD 3(3) and OD 4(3) of the Income Tax Act 2004” is replaced by “sections YC 4 and YC 5 of the Income Tax Act 2007”.

Section 154(3): “sections IF 4 and IF 6 and subpart IG of the Income Tax Act 2004” is replaced by “subpart IE of the Income Tax Act 2007 and the provisions relevant to section IA 6 of that Act”.

Section 154(4): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 155(2) to (4): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 156(1), (2), (3) and (6): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 156(3): “section CW 35(5)(b)” is replaced by “section CW 42(5)(b)”.

Section 156(3)(a)(i): “section CB 4(1)(g)” is replaced by “section CB 5(1)(g)” in each place where it appears.

Section 156(3)(c): “section CW 43” is replaced by “section CW 51”.
Section 157(1) and (2): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

3176 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Disabled Persons Employment Promotion Repeal Act 2007 (2007 No 11) Section 9: “and section CW 33(1)(d) of the Income Tax Act 2007” is inserted after “Income Tax Act 2004”.

Earthquake Commission Act 1993 (1993 No 84) Section 10(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Education Act 1989 (1989 No 80) Sections 205(2)(a), 218(2)(a), 219(2)(a), 244(2)(a), 294(2)(a), 298(2)(a), and 300(2)(a): “section IF 1(1)(a) of the Income Tax Act 2004” is replaced by “section IA 5(2) of the Income Tax Act 2007” in each place where it appears.

Sections 205(2)(b), 218(2)(b), 219(2)(b), 244(2)(b), 294(2)(b), 298(2)(b), and 300(2)(b): “section IG 1 of the Income Tax Act 2004” is replaced by “section IA 6 of the Income Tax Act 2007” in each place where it appears.
Sections 205(2)(c), 218(2)(c), 219(2)(c), 244(2)(c), 294(2)(c), 298(2)(c), and 300(2)(c): “section ME 5(1)(i) of the Income Tax Act 2004, or in a taxpayer’s dividend withholding payment account under section MG 5(1)(i) of that Act, or in a taxpayer’s branch equivalent tax account under section MF 4(3)(d) of that Act” is replaced by “section OB 41 of the Income Tax Act 2007, or in a taxpayer’s FDP account under section OC 24 of that Act, or in a taxpayer’s branch equivalent tax account under section OE 15 of that Act” in each place where it appears.
Section 307A(1), deﬁnition of tax ﬁle number: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Electricity Industry Reform Act 1998 (1998 No 88) Section 60(d): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 63(1): “Section FD 10(9) of the Income Tax Act 2004” is replaced by “Section FM 22 of the Income Tax Act 2007”.
3177 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Electricity Industry Reform Act 1998 (1998 No 88)—continued Section 66(1) and (2): “sections CB 3 and CB 4 of the Income Tax Act 2004” is replaced by “sections CB 4 and CB 5 of the Income Tax Act 2007” in each place where it appears.

Section 67(1): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Energy Companies Act 1992 (1992 No 56) Section 54(2), words before paragraph (a): “sections IE 1, IF 1, IG 2(1) and IG 2(2)(e) of the Income Tax Act 2004” is replaced by “section IA 5 of the Income Tax Act 2007”.

Section 54(2), words after paragraph (b): “deemed by the Income Tax Act 2004 to hold” is replaced by “treated by the Income Tax Act 2007 as holding”.

Section 54(4): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 62(2) and (3): “sections IE 1, IF 1, IG 2(1) and IG 2(2)(e) of the Income Tax Act 2004” is replaced by “section IA 5 of the Income Tax Act 2007” in each place where it appears.

Section 62(2): “deemed by the Income Tax Act 2004 to hold” is replaced by “treated by the Income Tax Act 2007 as holding”.

Section 62(3): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 62(5): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Energy Resources Levy Act 1976 (1976 No 71) Section 17(3): “Income Tax Act 2004 or the Tax Administration Act 1994, the provisions of section MH 1 of the Income Tax Act 2004” is replaced by “Income Tax Act 2007 or the Tax Administration Act 1994, the provisions of section RA 7 of the Income Tax Act 2007”.

Section 27: “Income Tax Act 2004, section HK 11” is replaced by “Income Tax Act 2007, section HD 15”.
3178 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Estate and Gift Duties Act 1968 (1968 No 35) Section 74A: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 74B: “deﬁned in the Income Tax Act 2004” is replaced by “deﬁned in the Income Tax Act 2007”.

Section 74B: “Income Tax Act 2004, or would constitute such a divi- dend but for the application of section CD 19” is replaced by “that Act, or would constitute such a dividend but for the application of section CD 27”.
Sections 74C(1): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Section 74D: “section CD 24B of the Income Tax Act 2004” is re- placed by “section CD 34 of the Income Tax Act 2007”.

Section 75(1)(b)(ii) and (c)(ii), and (2): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Section 75(1)(e): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 75B, heading: “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.

Section 75B(1)(a): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 75B(1)(c): “Income Tax Act 2004” is replaced by “that Act”.

Fencing of Swimming Pools Act 1987 (1987 No 178) Section 2, deﬁnition of owner, paragraph (a): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Finance Act 1987 (1987 No 200) Section 6(2): “Neither of subsection (1) nor subsection (6) of section IF 1 of the Income Tax Act 2004 applies” is replaced by “Sections IA 5 and IZ 5 of the Income Tax Act 2007 do not apply”.

Section 6(3): “Income Tax Act 2004, no deduction shall be made under section IG 2(2)” is replaced by “Income Tax Act 2007, no de- duction shall be made under section IC 5”.

Section 6(4): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
3179 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Finance Act 1988 (1988 No 107) Section 7: “fringe beneﬁt tax (within the meaning of the Income Tax Act 2004)” is replaced by “FBT (within the meaning of the Income Tax Act 2007)”.
Finance Act (No 2) 1988 (1988 No 128) Section 23: replace by the following: “23 Amendment to Income Tax Act 2007 The Income Tax Act 2007 is amended by omitting from sched- ule 36 the item ‘Crown Forestry Management Limited’.” Finance Act 1991 (1991 No 93) Section 26: replace by the following: “26 Amendment to Income Tax Act 2007 The Income Tax Act 2007 is amended by omitting from sched- ule 36 the item ‘Timberlands West Coast Limited’.” Fisheries Act 1996 (1996 No 88) Section 59(10)(c): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 59(10)(d): “section OD 7 of the Income Tax Act 2004, except that paragraph (e) of the deﬁnition of market value circumstance in section OB 1” is replaced by “subpart YB of the Income Tax Act 2007 (to the extent to which those rules apply for the whole of that Act excluding the 1973, 1988, and 1990 version provisions), except that paragraph (e) of the deﬁnition of market value circumstance in section YA 1”.
Goods and Services Tax Act 1985 (1985 No 141) Section 2, deﬁnition of hire purchase agreement: “section OB 1 of the Income Tax Act 2004; but includes an agreement that would be a hire purchase agreement but for the exclusion in paragraph (g)” is replaced by “section YA 1 of the Income Tax Act 2007; but includes an agreement that would be a hire purchase agreement but for the exclusion in paragraph (f)”.
Section 2, deﬁnitions of income year, New Zealand, provisional tax, tax ﬁle number, and tax year: “section OB 1 of the Income 3180 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Goods and Services Tax Act 1985 (1985 No 141)—continued Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 2, the deﬁnition of resident: “sections OE 1 and OE 2(1) of the Income Tax Act 2004” is replaced by “sections YD 1 and YD 2 (excluding section YD 2(2)) of the Income Tax Act 2007”.

Section 2A(2), (3)(a) to (c), and (7): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Sections 5(6E)(b)(ii) “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 10(3)(c), (3C), and (3D): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 10(7)(a): “sections CX 18, and ND 1S to ND 1V of the In- come Tax Act 2004” is replaced by “sections CX 27, and RD 54 to RD 57 of the Income Tax Act 2007”.

Section 10(15C): “section IG 1 of the Income Tax Act 2004” is re- placed by “section IA 6 of the Income Tax Act 2007” in each place where it appears.
Section 11A(1)(r): “section IG 1 of the Income Tax Act 2004” is replaced by “section IA 6 of the Income Tax Act 2007”.

Section 15B(2): “schedule 13, part A of the Income Tax Act 2004” is replaced by “schedule 3, part A of the Income Tax Act 2007”.

Section 15D(4): “Sections MB 26 and MB 27 of the Income Tax Act 2004” is replaced by “Section RC 27 of the Income Tax Act 2007”.

Section 15E(3)(b): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 19D(2): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Section 20A(1), deﬁnitions of taxable income, tax year, and tax- payer: “taxpayer have the same meaning as in section OB 1 of the Income Tax Act 2004” is replaced by “taxpayer have the same mean- ings as in section YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 21I(1) and (4): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

3181 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Goods and Services Tax Act 1985 (1985 No 141)—continued Section 21I(5): “section CW 13 or CW 14 of the Income Tax Act 2004” is replaced by “section CW 17 or CW 18 of the Income Tax Act 2007”.
Section 23A(1): “sections ND 9, ND 10, ND 13 and ND 14 of the Income Tax Act 2004” is replaced by “sections RA 15, and RD 59 to RD 62 of the Income Tax Act 2007 and sections 46B to 46D of the Tax Administration Act 1994”.

Section 23A(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 23A(1) and (2): “fringe beneﬁt tax” is replaced by “FBT” in each place where it appears.
Section 48A(1): “section OB 1 of the Income Tax Act 1994” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Section 55(1): “section IG 1 of the Income Tax Act 2004” is replaced by “section IA 6 of the Income Tax Act 2007”.

Section 61: “Section HK 11 of the Income Tax Act 2004” is replaced by “Section HD 15 of the Income Tax Act 2007”.

Section 61A: “Section OB1 of the Income Tax Act 2004” is replaced by “Section YA 1 of the Income Tax Act 2007”.
Government Superannuation Fund Act 1956 (1956 No 47) Section 15D(2): “section HJ 1 of the Income Tax Act 2004” is re- placed by “section HR 4 of the Income Tax Act 2007”.

Government Superannuation Fund Amendment Act 1990 (1990 No 30) Section 10(1)(b) and (3): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 32(1)(b): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 33(1)(b) and (3): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Health and Safety in Employment Act 1992 (1992 No 96) Section 59(2)(c): “section OB 2(2) of the Income Tax Act 2004” is replaced by “section RD 3(2) to (4) of the Income Tax Act 2007”.
3182 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Health Sector (Transfers) Act 1993 (1993 No 23) Section 8(4): “sections CB 5 to CB 21 or EE 37 to EE 44 of the Income Tax Act 2004” is replaced by “sections CB 6 to CB 23 or EE 44 to EE 52 of the Income Tax Act 2007”.

Section 8(5): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 8(6): “sections EE 34 to EE 36 of the Income Tax Act 2004” is replaced by “sections EE 41 to EE 43 of the Income Tax Act 2007”.
Home Ownership Savings Act 1974 (1974 No 51) Section 14A(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 14D(5): “a rebate is allowable under section KG 1(1) of the Income Tax Act 2004” is replaced by “tax credit is allowed under section LZ 9 of the Income Tax Act 2007”.

Section 14L(b): “subpart ID of the Income Tax Act 2004” is replaced by “sections RZ 7 to RZ 10 of the Income Tax Act 2007”.
Section 14M(1), words before paragraph (a): “subpart ID of the In- come Tax Act 2004” is replaced by “sections RZ 7 to RZ 10 of the Income Tax Act 2007”.

Hop Industry Restructuring Act 2003 (2003 No 16) Section 11: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 11(2)(b): “OD 5(5)” is replaced by “YC 10”.

Section 11(3): “OB 1” is replaced by “YA 1”.


Housing Corporation Act 1974 (1974 No 19) Section 56(2)(a): “subparagraphs (v) and (vi) of section FE 6(5)(a) and subparagraphs (iv) and (v) of section FE 7(1)(a) of the Income Tax Act 2004” is replaced by “section FO 12(1)(b) and (d) of the Income Tax Act 2007”.
Housing Restructuring and Tenancy Matters Act 1992 (1992 No 76) Section 42(1), deﬁnition of standard tax: “section NC 8 of the In- come Tax Act 2004” is replaced by “section 24B of the Tax Admin- istration Act 1994”.
3183 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Housing Restructuring and Tenancy Matters Act 1992 (1992 No 76)—continued Section 46(2)(c) and (3)(b): “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007” in each place where it appears.

Schedule 2, clauses 5, 9(c), and 10(a)(ii): “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007” in each place where it appears.
Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49) Section 6, deﬁnition of close company: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 6, deﬁnition of employee, paragraph (a): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 6, deﬁnition of employee, paragraph (b): “section OB 2(2) of the Income Tax Act 2004” is replaced by “section RD 3(2) to (4) of the Income Tax Act 2007”.

Section 6, deﬁnition of employer, paragraph (a): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Section 6, deﬁnition of employer, paragraph (a)(ii): “section OB 2(2) of the Income Tax Act 2004” is replaced by “section RD 3(2) to (4) of the Income Tax Act 2007”.
Section 6, deﬁnition of employer, paragraph (b): “paragraph (b)(ix) or (xi) to (xvi) of the deﬁnition of salary or wages in section OB 1 of the Income Tax Act 2004” is replaced by “section RD 5(1)(b)(iii), (6)(b), or (c) of the Income Tax Act 2007”.

Section 6, after the deﬁnition of partner: insert the following: “PAYE income payment has the same meaning as in section RD 3(1) of the Income Tax Act 2007”.
Section 6, deﬁnition of private domestic worker: “section NC 16 of the Income Tax Act 2004” is replaced by “section RD 4 of the Income Tax Act 2007”.

Section 6, deﬁnition of source deduction payment: omit.

3184 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49)—continued Section 6, deﬁnition of tax year: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 9(1): “source deduction payments” is replaced by “PAYE income payments”.

Sections 10(2) and (4)(c): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 11(1)(a): “withholding payment” is replaced by “schedular payment”.

Section 11(1)(c): “section GD 3 of the Income Tax Act 2004” is replaced by “sections CD 11, CW 63, DB 58, GB 23, and GB 24 of the Income Tax Act 2007”.
Section 11(1)(d): “section GD 5 of the Income Tax Act 2004” is replaced by “section GB 25 of the Income Tax Act 2007”.

Section 11(1)(h)(i): after “Income Tax Act 2004” insert “or section DC 2 of the Income Tax Act 2007”.

Section 11(1)(h)(ii): after “Income Tax Act 2004” insert “or section DC 3 of the Income Tax Act 2007”.

Section 11(1)(h)(iii): “section FF 17 of the Income Tax Act 2004” is replaced by “sections FB 11 and FB 12 of the Income Tax Act 2007”.
Section 11(2): “withholding payment have the same meanings as in section OB 1 of the Income Tax Act 2004” is replaced by “schedular payment have the same meanings as in section YA 1 of the Income Tax Act 2007”.

Section 14(2)(a) and (3): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 15(2)(a): “source deduction payments” is replaced by “PAYE income payments”.
Section 15(2)(b): “source deduction payments under section OB 2(2) of the Income Tax Act 2004” is replaced by “PAYE income payments under section RD 3(2) to (4) of the Income Tax Act 2007”.

Section 99(b): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
3185 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49)—continued Section 169A(1)(a): “section IE 1 of the Income Tax Act 2004” is replaced by “sections IA 1 to IA 4, IA 7(9) and IA 9 of the Income Tax Act 2007”.

Section 169A(1)(b): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 169A(1)(b): “section HG 16 of the Income Tax Act 2004” is replaced by “sections HA 20, HA 24, HA 26, HA 27, and IA 7(2) of the Income Tax Act 2007”.

Section 193(5)(b): “section MC 1 of the Income Tax Act 2004” is replaced by “section RA 3 of the Income Tax Act 2007”.

Section 193(9)(a): “section NC 2(1) of the Income Tax Act 2004” is replaced by “section RD 16 of the Income Tax Act 2007”.
Section 193(9)(c): “section OB 2(2) of the Income Tax Act 2004” is replaced by “section RD 3(2) to (4) of the Income Tax Act 2007”.

Section 204(1)(b): “ ‘loss attributing qualifying company’ (as deﬁned in section OB 1 of the Income Tax Act 2004)” is replaced by “loss-attributing qualifying company (as deﬁned in section YA 1 of the Income Tax Act 2007)”.

Section 221(3): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.
Section 236(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 246(1), (3) and (4): “section OB 2(2) of the Income Tax Act 2004” is replaced by “section RD 3(2) to (4) of the Income Tax Act 2007” in each place where it appears.

Section 316(6): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Schedule 1, clause 30: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Schedule 4, clause 1, words before paragraph (a): “the PAYE rules of the Income Tax Act 2004” is replaced by “the PAYE rules of the Income Tax Act 2007”.
Schedule 4, clause 1(a): “source deduction payment (or, as the case may require, salary or wages)” is replaced by “PAYE income pay- 3186 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49)—continued ment (or, as the case may require, salary or wages under section RD 5 of the Income Tax Act 2007)”.

Schedule 4, clause 1(c): “a tax deduction, which tax deduction” is replaced by “an amount of tax, which amount”.
Schedule 4, clause 1(db): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Schedule 4, clause 2: “tax deduction made” is replaced by “amount of tax withheld”.

Schedule 4, clause 3: “section NC 4 of the Income Tax Act 2004” is replaced by “section RD 6 of the Income Tax Act 2007”.

Schedule 4, clause 4(a): “the amount of any tax deduction” is re- placed by “any amount of tax”.

Schedule 4, clause 4(b): “tax deductions” is replaced by “amounts of tax”.
Schedule 4, clause 4(b): “a tax deduction” is replaced by “an amount of tax withheld and”.

Schedule 4, clause 5: “section NC 16 of the Income Tax Act 2004” is replaced by “section RD 4 of the Income Tax Act 2007”.

Schedule 4, clause 7(b): “section MC 1 of the Income Tax Act 2004” is replaced by “section RA 3 of the Income Tax Act 2007”.

Schedule 4, clause 8: “section KC 2 of the Income Tax Act 2004” is replaced by “section LC 3 of the Income Tax Act 2007”.
Schedule 4, clause 8: “makes a tax deduction” is replaced by “with- holds an amount of tax”.

Schedule 4, clause 9: “sections LD 1(2), LD 1(3), NC 2(1), NC 6, NC 7, NC 8, NC 9, NC 13, and NC 14 of the Income Tax Act 2004” is replaced by “sections LA 3, LA 6, RA 2, RD 10, RD 11, RD 16, RD 18 of the Income Tax Act 2007 and sections 24B to 24P of the Tax Administration Act 1994”.

Schedule 4, clause 14: “combined tax and earner levy deduction” is replaced by “combined tax and earner-related payment”.
Schedule 4, clause 22: is replaced by the following: “(22) For the purposes of this schedule, combined tax and earner-related payment, Commissioner, employee, em- income tax, PAYE intermediary, PAYE income ployer, 3187 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Injury Prevention, Rehabilitation, and Compensation Act 2001 (2001 No 49)—continued payment, salary or wages, and shareholder-employee have the same meanings as in the Income Tax Act 2007.” Insolvency Act 2006 (2006 No 55) Section 182(1): “section OD 1 of the Income Tax Act 2004” is re- placed by “section YC 1 of the Income Tax Act 2007”.
Section 274(5)(b) to (d): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Insurance Companies Deposits Act 1953 (1953 No 50) Section 22A, deﬁnition of New Zealand person: “section OE 1 of the Income Tax Act 2004” is replaced by “section YD 1 of the Income Tax Act 2007”.

Investment Advisers (Disclosure) Act 1996 (1996 No 104) Section 2(3)(a): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Kiwifruit Industry Restructuring Act 1999 (1999 No 95) Section 23(1), (2), (3), (4), and (6): “Income Tax Act 2004” is re- placed by “Income Tax Act 2007” in each place where it appears.

Section 23(2)(b): “OD 5(5)” is replaced by “YC 10”.

Section 23(3): “OB 1” is replaced by “YA 1”.

Section 23(4): “HF 1(9)” is replaced by “HE 3”.


KiwiSaver Act 2006 (2006 No 40) Section 4, deﬁnition of employer monthly schedule: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 4, deﬁnition of employment: replace by the following: “employment means employment (including the activities re- ferred to in paragraph (a) of the deﬁnition of that term in sec- tion YA 1 of the Income Tax Act 2007) for which salary or wages is payable 3188 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 KiwiSaver Act 2006 (2006 No 40)—continued “ESCT rules has the same meaning as in section YA 1 of the Income Tax Act 2007”.
Section 4, deﬁnition of pay period: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007)”.

Section 4, deﬁnition of PAYE period: “has the same meaning as in section NC 15(8) of the Income Tax Act 2004” is replaced by “means, as the case may require, the ﬁrst payment period or the second payment period, (as those terms are deﬁned in the Income Tax Act 2007)”.
Section 4, deﬁnition of PAYE rules: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 4, deﬁnition of remittance certiﬁcate: “has the same mean- ing as in section OB 1 of the Income Tax Act 2004” is replaced by “means a PAYE payment form as deﬁned in section YA 1 of the In- come Tax Act 2007”.
Section 4, deﬁnition of salary or wages: “paragraphs (a) to (c) of the deﬁnition of salary or wages in section OB 1 of the Income Tax Act 2004” is replaced by “section RD 5(1)(a) to (c) of the Income Tax Act 2007”.

Section 4, deﬁnition of salary or wages, paragraph (a): “subpara- graphs (iv), (v), (viii), (ix), or (xi) of paragraph (b) of that deﬁnition” is replaced by “sections RD 5(4), (6)(a) to (c), and RD 68”.
Section 4, deﬁnition of salary or wages, paragraph (b): “section OB 1 of the Income Tax Act 2004” is replaced by “section RD 7 of the Income Tax Act 2007”.

Section 4, deﬁnition of SSCWT rules: repeal.

Section 4, deﬁnition of tax ﬁle number: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 6(2)(a): “a New Zealand resident (within the meaning of sections OE 1 and OE 2 of the Income Tax Act 2004)” is replaced by “a New Zealand resident (within the meaning of sections YD 1 or YD 2 (excluding section YD 2(2) of the Income Tax Act 2007)”.
3189 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 KiwiSaver Act 2006 (2006 No 40)—continued Section 6(2)(b): “carries on a business from a ﬁxed establishment in New Zealand (within the meaning of section OB 1 of the Income Tax Act 2004)” is replaced by “carries on a business from a ﬁxed establishment in New Zealand (within the meaning of section YA 1 of the Income Tax Act 2007)”.
Section 12(1)(a) and (2)(a): “casual agricultural worker within the meaning of section OB 1 of the Income Tax Act 2004” is replaced by “casual agricultural worker within the meaning of section YA 1 of the Income Tax Act 2007” in each place where it appears.
Section 14(1)(a) and (b): replace by the following: “(a) if the person is an employee only because they are in receipt of payments of salary or wages of a type referred to in any of the following sections in the Income Tax Act 2007: “(i) section RD 5(1)(b)(iii) (which relates to certain ACC payments): section RD 5(3) (which relates to payments to working partners): “(ii) “(iii) section RD 5(7) (which relates to parental leave payments paid under Part 7A of the Parental Leave and Employment Protection Act 1987): “(b) if the new employment is as an election day worker or a private domestic worker as those terms are deﬁned in section YA 1 of the Income Tax Act 2007:”.
Section 17(5): “section NC 15 of the Income Tax Act 2004” is re- placed by “sections RA 5, RA 20, RD 2(3), RD 4(1), and RD 22 of the Income Tax Act 2007 and sections 24J and 24P of the Tax Ad- ministration Act 1994”.

Section 23(2): “section NC 15 of the Income Tax Act 2004” is re- placed by “sections RA 5, RA 20, RD 2(3), RD 4(1), and RD 22 of the Income Tax Act 2007 and sections 24J and 24P of the Tax Ad- ministration Act 1994”.
Section 26(1)(d): “speciﬁed superannuation contribution withhold- ing tax payable under the SSCWT rules” is replaced by “ESCT payable under the ESCT rules”.

Section 34(4): “section NC 15 of the Income Tax Act 2004” is re- placed by “sections RA 5, RA 20, RD 2(3), RD 4(1), and RD 22 of 3190 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 KiwiSaver Act 2006 (2006 No 40)—continued the Income Tax Act 2007 and sections 24J and 24P of the Tax Ad- ministration Act 1994”.
Section 63: “section OB 1 of the Income Tax Act 2004) who is acting under subpart NBA of Part N of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007) who is acting under sections RP 1 to RP 16 of that Act”.

Section 65(2): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 66(b)(i): “a speciﬁed superannuation contribution within the meaning of section OB 1 of the Income Tax Act 2004” is replaced by “an employer’s superannuation contribution within the meaning of section YA 1 of the Income Tax Act 2007”.

Section 67(1)(b): “tax deductions” is replaced by “amounts of tax withheld”.
Section 67(3)(a): “sections BC 1, LD 1, NC 2(1), NC 2(5), NC 6, NC 7, NC 8, NC 8A, NC 9, NC 13, and NC 14 of the Income Tax Act 2004” is replaced by “sections BC 1, LA 6, RA 2, RD 9 to RD 11, RD 16, RD 17, and RD 18 of the Income Tax Act 2007 and sections 24B to 24P of the Tax Administration Act 1994”.

Section 67(4): “tax deduction made” is replaced by “amount of tax withheld”.

Section 67(5): “tax deductions required to be made” is replaced by “amounts of tax required to be withheld”.
Section 69(1)(b): “section NC 15 of the Income Tax Act 2004” is replaced by “section RA 15 of the Income Tax Act 2007”.

Section 73(b): “employer monthly schedule delivered under sec- tion NC 15 of the Income Tax Act 2004” is replaced by “employer monthly schedule delivered under section RD 4 of the Income Tax Act 2007”.
Section 78: “pay the deduction to the Commissioner under section NC 15 of the Income Tax Act 2004” is replaced by “pay the deduc- tion to the Commissioner under section RD 4 of the Income Tax Act 2007”.

3191 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 KiwiSaver Act 2006 (2006 No 40)—continued Section 86, deﬁnition of lowest tax rate: replace by the following: “lowest tax rate is the tax rate in schedule 1, part A, table 1, row 1, column 2 of the Income Tax Act 2007”.
Section 91: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 93(1): “a speciﬁed superannuation contribution within the meaning of section OB 1 of the Income Tax Act 2004” is replaced by “an employer’s superannuation contribution within the meaning of section YA 1 of the Income Tax Act 2007”.

Section 93(2): “remittance certiﬁcate” is replaced by “PAYE pay- ment form”.

Section 93(3): “section NC 15 of the Income Tax Act 2004” is re- placed by “section RD 4 of the Income Tax Act 2007”.
Section 93(3): “of tax deductions, as if the contribution were a tax deduction” is replaced by “of amounts of tax withheld, as if the con- tribution were an amount of tax”.

Section 93(4): “section NC 15” is replaced by “section RD 4”.

Section 96(2): “speciﬁed superannuation contribution withholding tax payable under the SSCWT rules” is replaced by “ESCT payable under the ESCT rules”.
Section 98(2): “speciﬁed superannuation contribution withholding tax payable under the SSCWT rules” is replaced by “ESCT payable under the ESCT rules”.

Section 98(3)(a): “combined tax and earner premium deductions (within the meaning of the Income Tax Act 2004)” is replaced by “combined tax and earner-related payments (within the meaning of the Income Tax Act 2007)”.
Section 99(2): “speciﬁed superannuation contribution withholding tax payable under the SSCWT rules” is replaced by “ESCT payable under the ESCT rules”.

Section 144(3)(a): “deﬁnition of settlement in section OB 1 of the Income Tax Act 2004” is replaced by “deﬁnition of settlement in section YA 1 of the Income Tax Act 2007”.
3192 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 KiwiSaver Act 2006 (2006 No 40)—continued Section 215(4)(a): “tax deductions payable and speciﬁed superannu- ation contribution withholding tax payable” is replaced by “tax de- ductions or withholdings payable and ESCT payable”.

Section 215(4)(b): “speciﬁed superannuation contribution withhold- ing tax” is replaced by “ESCT”.

Section 227(a): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Legal Services Act 2000 (2000 No 42) Schedule 1, clause 2(1)(e): “subparts MA to MF and MZ of the In- come Tax Act 2007 or” is inserted before “subpart KD of the Income Tax Act 2004”.

Local Government Act 1974 (1974 No 66 Section 707ZZZS(2)(b): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 707ZZZT: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 707ZZZT(b): “sections IG 1 and IG 2” is replaced by “sec- tion IA 6”.

Local Government Amendment Act 1989 (1989 No 1) Section 29A: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Local Government Act 2002 (2002 No 84) Schedule 3, clause 69(6): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Schedule 9, clause 6, heading: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Schedule 9, clause 6(1) and (2): “sections CB 5 to CB 21 of the Income Tax Act 2004” is replaced by “sections CB 6 to CB 23 of the Income Tax Act 2007” in each place where it appears.

Schedule 9, clause 6(3): “sections EE 34(1) to (3) and EZ 11 of the Income Tax Act 2004” is replaced by “sections EE 41(1) to (3) and EZ 12 of the Income Tax Act 2007”.
3193 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Local Government (Auckland) Amendment Act 2004 (2004 No 57) Section 30(5): “section YA 1 of the Income Tax Act 2007 and in” is inserted before “section OB 1 of the Income Tax Act 1994”.

Maori Reserved Land Amendment Act 1997 (1997 No 101) Section 22(2): “section CW 28(1)(g) of the Income Tax Act 2004” is replaced by “section CW 34(1)(g) of the Income Tax Act 2007”.
Maori Trust Boards Act 1955 (1955 No 37) Section 24B(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 41A(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Misuse of Drugs Amendment Act 2005 (2005 No 81) Section 31, deﬁnition of manufacturer: “section OD 7 of the Income Tax Act 2004” is replaced by “subpart YB of the Income Tax Act 2007 (to the extent to which those rules apply for the whole of that Act excluding the 1973, 1988, and 1990 version provisions)”.
Motor Vehicle Sales Act 2003 (2003 No 12) Section 6(1), in the deﬁnition of hire purchase agreement: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

National Provident Fund Restructuring Act 1990 (1990 No 126) Section 25(1)(c): “section EZ 45 of the Income Tax Act 2004” is replaced by “section EZ 48 of the Income Tax Act 2007”.

Section 35(2)(a): “section IF 1(1)(a) of the Income Tax Act 2004” is replaced by “section IA 5(2) of the Income Tax Act 2007”.
Section 35(2)(b): “section IG 1 of the Income Tax Act 2004” is re- placed by “section IA 6 of the Income Tax Act 2007”.
Section 35(2)(c): “dividend withholding payment account, or branch equivalent tax account under section ME 5 or section MF 4 or section MG 5 of the Income Tax Act 2004” is replaced by “FDP account, or branch equivalent tax account under section OA 6(2), (3), or (5), as 3194 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 National Provident Fund Restructuring Act 1990 (1990 No 126)—continued described in table O2, table O4, or table O8 of the Income Tax Act 2007”.
National Provident Fund Restructuring Amendment Act 1997 (1997 No 83) Schedule 2, clause 8(a): “section IF 1(1)(a) of the Income Tax Act 2004” is replaced by “section IA 5(2) of the Income Tax Act 2007”.

Schedule 2, clause 8(b): “section IG 1 of the Income Tax Act 2004” is replaced by “section IA 6 of that Act”.
Schedule 2, clause 8(c): “dividend withholding payment account, or branch equivalent tax account under section ME 5 or section MF 4 or section MG 5 of the Income Tax Act 2004” is replaced by “FDP account, or branch equivalent tax account under under section OA 6(2), (3), or (5), as described in table O2, table O4, or table O8 of that Act”.

Schedule 2, clause 9(a): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.
New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84) Section 5(1), deﬁnition of net cost: “any tax deduction made or re- quired to be made under the PAYE rules in the Income Tax Act 2004” is replaced by “any amount of tax deducted or withheld, or required to be deducted or withheld under the PAYE rules in the Income Tax Act 2007”.

Section 15(1), deﬁnition of standard tax: “section NC 8 of the In- come Tax Act 2004” is replaced by “section 24B of the Tax Admin- istration Act 1994”.
Section 43, item net cost in formula: “any tax deduction made or re- quired to be made under the PAYE rules in the Income Tax Act 2004” is replaced by “any amount of tax deducted or withheld, or required to be deducted or withheld under the PAYE rules in the Income Tax Act 2007”.

Section 76(1) and (2): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.
3195 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 New Zealand Superannuation and Retirement Income Act 2001 (2001 No 84)—continued Section 76(4): “section ME 1 of the Income Tax Act 2004” is re- placed by “section OB 1 of the Income Tax Act 2007”.

Schedule 1: “section NC 8 of the Income Tax Act 2004” is replaced by “section 24B of the Tax Administration Act 1994”.
New Zealand Tourism Board Act 1991 (1991 No 110) Schedule 1, clause 21: “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.

Parental Leave and Employment Protection Act 1987 (1987 No 129) Section 71C, deﬁnition of net income: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Perpetuities Act 1964 (1964 No 47) Section 19(1): “section DC 6 of the Income Tax Act 2004” is replaced by “section DC 7 of that Act”.
Section 19(1) and (1A): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 19(1A): “section OB 1” is replaced by “section YA 1”.

Petroleum Sector Reform Act 1988 (1988 No 95) Section 3, heading and provisions: “Income Tax Act 2004” is re- placed by “Income Tax Act 2007” in each place where it appears.

Port Companies Act 1988 (1988 No 91) Section 38(4)(a): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Privacy Act 1993 (1993 No 28) Section 6, principle 12(2): “section OD 7 of the Income Tax Act 2004” is replaced by “subpart YB of the Income Tax Act 2007 (to the extent to which those rules apply for the whole of that Act excluding the 1973, 1988, and 1990 version provisions)”.
3196 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Privacy Act 1993 (1993 No 28)—continued Section 103(1B): “subpart KD of the Income Tax Act 2004” is re- placed by “subparts MA to MF and MZ of the Income Tax Act 2007”.

Public Audit Act 2001 (2001 No 10) Section 43: “sections CW 31 and CW 32 of the Income Tax Act 2004” is replaced by “sections CW 38 and CW 39 of the Income Tax Act 2007”.
Public Service Investment Society Management Act (No 2) 1979 (1979 No 9) Section 2(2): “section OD 1 of the Income Tax Act 2004” is replaced by “section YC 1 of the Income Tax Act 2007”.

Radiocommunications Act 1989 (1989 No 148) Sections 153(2) and 161(2): “section OD 7 of the Income Tax Act 2004” is replaced by “subpart YB of the Income Tax Act 2007 (to the extent to which those rules apply for the whole of that Act excluding the 1973, 1988, and 1990 version provisions)” in each place where it appears.
Rates Rebate Act 1973 (1973 No 5) Section 2(1), deﬁnition of income, paragraphs (c) and (d)(vi): “In- come Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 2(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Securities Act 1978 (1978 No 103) Section 2, deﬁnition of associated persons or persons associated with each other: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 2, deﬁnition of convertible note: “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of relative: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

3197 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Securities Act 1978 (1978 No 103)—continued Section 5(1)(h): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.
Sentencing Act 2002 (2002 No 9) Section 127(1), deﬁnition of hire purchase agreement: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Smoke-free Environments Act 1990 (1990 No 108) Section 2(1), deﬁnition of manufacturer: “section OD 7 of the In- come Tax Act 2004” is replaced by “subpart YB of the Income Tax Act 2007 (to the extent to which those rules apply for the whole of that Act excluding the 1973, 1988, and 1990 version provisions)”.
Social Security Act 1964 (1964 No 136) Section 3(1), deﬁnition of income, paragraph (f)(xviii): “subparts MA to MF and MZ of the Income Tax Act 2007 or” is inserted before “subpart KD of the Income Tax Act 2004”.

Section 3(1), deﬁnition of income tax: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 3(3)(c)(i): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(3)(c)(ii): “section OE 1 or section OE 2(1) of the Income Tax Act 2004” is replaced by “section YD 1 or YD 2 (excluding section YD 2(2)) of the Income Tax Act 2007”.

Section 11A(10): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 61G(7), deﬁnition of tax credit: “subparts MA to MF and MZ of the Income Tax Act 2007 or” is inserted before “subpart KD of the Income Tax Act 2004”.
Section 70(4): “section CW 23 of the Income Tax Act 2004” is re- placed by “section CW 28 of the Income Tax Act 2007”.

Section 80B, deﬁnition of income, paragraph (b): “tax deduction on any of those beneﬁts under the fourth proviso to section NC 6(1) of the Income Tax Act 2004” is replaced by “tax withheld or deducted 3198 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Social Security Act 1964 (1964 No 136)—continued for any of those beneﬁts under section RD 11(3) of the Income Tax Act 2007”.
Section 82A(5): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Section 83(3): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 83A(4)(b)(iii): replace by the following: “(iii) the Income Tax Act 2004, be considered to be “(iv) income of the person; or the Income Tax Act 2007, be considered to be income of the person.” Section 83A(6), deﬁnition of income-tested beneﬁt: after “Income Tax Act 2004” insert “or section YA 1 of the Income Tax Act 2007”.
Section 83A(6), deﬁnition of source deduction payment: add “and includes a PAYE income payment, as that term is deﬁned in section RD 3 of the Income Tax Act 2007 (if applicable)”.
Section 83A(6), deﬁnition of speciﬁed provision, paragraph (d): re- place by the following: “(d) “(e) section NC 6(1D) of the Income Tax Act 2004; or section RD 11(3) of the Income Tax Act 2007.” Section 86G(2): “tax deductions that would be required to be made in accordance with the PAYE rules of the Income Tax Act 2004” is replaced by “amount of tax required to be withheld or deducted in accordance with the PAYE rules of the Income Tax Act 2007”.
Section 132H(2)(i): “loss-attributing qualifying companies (within the meaning of the Income Tax Act 2004)” is replaced by “loss-at- tributing qualifying companies (within the meaning of the Income Tax Act 2007)”.

Schedule 18, clause 1, deﬁnition of base rate, paragraphs (b) and (d): “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007” in each place where it appears.
Schedule 18, clause 1, deﬁnition of base rate, paragraphs (e)(ii) and (g)(ii): “subparts MA to MF and MZ of the Income Tax Act 2007 or” is inserted before “subpart KD of the Income Tax Act 2004”.
3199 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Social Security Act 1964 (1964 No 136)—continued Schedule 22, clause 2: “deducted pursuant to tax code ‘G’ (as speciﬁed in section NC 8 of the Income Tax Act 2004)” is replaced by “withheld pursuant to tax code ‘M’ (as speciﬁed in section 24B(3) of the Tax Administration Act 1994)”.
Stamp and Cheque Duties Act 1971 (1971 No 51) Section 86F, deﬁnition of approved issuer: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 86F, deﬁnition of interest: “paragraphs (a) and (c) of the deﬁnition of ‘interest’ in section OB 1 of the Income Tax Act 2004” is replaced by “paragraphs (a) and (b) of the deﬁnition of interest in section YA 1 of the Income Tax Act 2007”.
Section 86F, deﬁnition of money lent: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 86F, deﬁnition of paid and payment: “paragraph (c) of the deﬁnition of ‘pay’ in section OB 1 of the Income Tax Act 2004” is replaced by “paragraph (c) of the deﬁnition of pay in section YA 1 of the Income Tax Act 2007”.

Section 86I: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 86L(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

State Insurance Act 1990 (1990 No 36) Section 13(5): “section MD 2 of the Income Tax Act 2004” is re- placed by “sections RM 13 to RM 17 of the Income Tax Act 2007”.

Section 13(6): “section ME 5 of the Income Tax Act 2004” is re- placed by “section OA 6(2), as described in table O2 of the Income Tax Act 2007”.

Section 13(7): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
3200 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 State-Owned Enterprises Act 1986 (1986 No 124) Section 10A(2)(c): “Schedule 18 of the Income Tax Act 2004” is replaced by “schedule 36 of the Income Tax Act 2007”.

Section 12(2)(d): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
State-Owned Enterprises Amendment Act 1996 (1996 No 82) Section 6, heading and provision: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 6: “Schedule 18” is replaced by “schedule 36”.

State-Owned Enterprises (AgriQuality Limited and Asure New Zealand Limited) Act 2007 (2007 No 21) Section 8(1)(a): “Schedule 18 of the Income Tax Act 2004” is re- placed by “Schedule 36 of the Income Tax Act 2006”.
State-Owned Enterprises (Meteorological Service of New Zealand Limited and Vehicle Testing New Zealand Limited) Amendment Act 1999 (1999 No 65) Section 3(9): “Income Tax Act 2004 is amended by omitting from Schedule 18” is replaced by “Income Tax Act 2007 is amended by omitting from schedule 36”.

Student Loan Scheme Act 1992 (1992 No 141) Section 2, deﬁnition of employee: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 2, deﬁnition of employer: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of extra emolument by: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of gross income: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 2, deﬁnition of income-tested beneﬁt: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

3201 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Student Loan Scheme Act 1992 (1992 No 141)—continued Section 2, deﬁnition of net income: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 2, deﬁnition of non-resident: “section OE 1 of the Income Tax Act 2004” is replaced by “section YD 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of PAYE intermediary: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of primary employment earnings: “section OB 1 of the Income Tax Act 2004” is replaced by “section 3(1) of the Tax Administration Act 1994”.
Section 2, deﬁnition of resident: “section OE 1 of the Income Tax Act 2004” is replaced by “section YD 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of salary or wages: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 2, deﬁnition of secondary employment earnings: “section OB 1 of the Income Tax Act 2004” is replaced by “section 3(1) of the Tax Administration Act 1994”.
Section 2, deﬁnition of tax year: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 14A(2): “section OE 4 of the Income Tax Act 2004” is re- placed by “section YD 4 of the Income Tax Act 2007.” Section 15(5): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007.” Section 16, heading: “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.
Section 16: “section KB 2 and paragraph (b) of the deﬁnition of ‘ap- plicable basic tax rate’ in section OB 1 of the Income Tax Act 2004” is replaced by “section LC 10 and paragraph (b) of the deﬁnition of basic tax rate in section YA 1 of the Income Tax Act 2007”.

Section 17(2): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 17B: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
3202 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Student Loan Scheme Act 1992 (1992 No 141)—continued Section 18(2)(b): “section NC 8(1) of the Income Tax Act 2004” is replaced by “section 24B(3) of the Tax Administration Act 1994”.

Section 19(3): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 21(2) and (3): “section NC 14 of the Income Tax Act 2004” is replaced by “section 24F of the Tax Administration Act 1994” in each place where it appears.
Section 25, heading: “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.

Section 25(1): “section OB 1” is replaced by “section YA 1”.

Section 25(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 25(1)(b): “tax deductions” is replaced by “withholding or deducting an amount of tax”.
Section 25(2): “sections BC 1, LD 1(2) and (3), NC 2(1), NC 6, NC 7, NC 16, and NC 17 of the Income Tax Act 2004” is replaced by “sections BC 1, LD 1(2) and (3), RC 2(1), RC 6, RC 7, RC 16, and RC 17 of the Income Tax Act 2007”.

Section 25(3): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 27(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 28(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 28(2)(b): “provisional taxpayer” is replaced by “provisional taxpayer or a person liable to pay provisional tax”.

Section 28(3)(a): “sections MB 2(3) and MB 4(3)(a) of the Income Tax Act 2004 (which determine the amount of provisional tax payable) and section LD 7” is replaced by “sections RC 3 and RC 5(2) of the Income Tax Act 2007 and section LB 2”.

Section 28(3)(b): “section MB 4(3)(b) of the Income Tax Act 2004” is replaced by “section RC 5(3) of the Income Tax Act 2007”.
Section 28(3)(c): “section MB 7 of the Income Tax Act 2004” is replaced by “section RC 8 of the Income Tax Act 2007”.
3203 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Student Loan Scheme Act 1992 (1992 No 141)—continued Section 28(3)(d): “section MB 8(3)(a)(i) and (ii) and (b)(i) of the Income Tax Act 2004 (which provide for exceptions to the require- ments of section MB 8(2)” is replaced by “section RC 9(4)(a)(i) and (ii) and (b)(i) of the Income Tax Act 2007 (which provide for excep- tions to the requirements of section RC 9(3)”.
Section 28(3)(e): “section MB 8(4) of the Income Tax Act 2004” is replaced by “section RC 9(5) of the Income Tax Act 2007”.

Section 28(3)(f): “sections MB 10, MB 15, MB 17, MB 18, MB 23, and MB 32 of the Income Tax Act 2004” is replaced by “sections RC 11, RC 16 to RC 19, RC 24, and RC 31 of the Income Tax Act 2007”.

Section 30(1): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 38AH(c)(i): “source deduction payment, as deﬁned in sec- tion OB 2(1) of the Income Tax Act 2004” is replaced by “PAYE income payment as deﬁned in section RD 3(1) of the Income Tax Act 2007”.

Section 44(3), deﬁnition of due date, paragraphs (a) and (b): “sched- ule 13 of the Income Tax Act 2004” is replaced by “schedule 3 of the Income Tax Act 2007” in each place where it appears.

Section 44A(3)(a) and (b): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 44A(4)(b): “schedule 13, part A, of the Income Tax Act 2004” is replaced by “schedule 3, part A of the Income Tax Act 2007”.

Section 55B(4): “Section NC 14 of the Income Tax Act 2004” is replaced by “Section 24F of the Tax Administration Act 1994”.

Superannuation Schemes Act 1989 (1989 No 10) Section 23(1): “section GD 8 of the Income Tax Act 2004” is re- placed by “section EY 11 of the Income Tax Act 2007”.
Section 30(a): “section GD 8 of the Income Tax Act 2004” is replaced by “section EY 11 of the Income Tax Act 2007”.

3204 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Takeovers Act 1993 (1993 No 107) Section 44L, deﬁnition of associated person, paragraph (a): “In- come Tax Act 2004” is replaced by “Income Tax Act 2007”.

Tarawera Forest Act 1967 (1967 No 45) Section 16, heading: “Income Tax Act 1976” is replaced by “In- come Tax Act 2007”.
Section 16: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Taxation Review Authorities Act 1994 (1994 No 165) Section 3(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 17(4), deﬁnition of widely-held company: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Te Arawa Lakes Settlement Act 2006 (2006 No 43) Section 84(2), deﬁnitions of market value and voting interest: “sec- tion OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Trustee Companies Management Act 1975 (1975 No 25) Section 2(2): “section OD 1 of the Income Tax Act 2004” is replaced by “section YC 1 of the Income Tax Act 2007”.
Tutae-Ka-Wetoweto Forest Act 2001 (2001 No 48) Section 10: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Unit Trusts Act 1960 (1960 No 99) Section 2(1), deﬁnition of unit trust, paragraph (g): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(4): “section OD 1 of the Income Tax Act 2004” is replaced by “section YC 1 of the Income Tax Act 2007”.
3205 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Unit Trusts Act 1960 (1960 No 99)—continued Section 6A(b): “section OD 1 of the Income Tax Act 2004” is re- placed by “section YC 1 of the Income Tax Act 2007”.

Section 6C(b): “section OD 1 of the Income Tax Act 2004” is re- placed by “section YC 1 of the Income Tax Act 2007”.
War Pensions Act 1954 (1954 No 54) Section 67(1), deﬁnition of employment income, paragraph (a)(i): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 67(1), deﬁnition of employment income, paragraph (a)(ii): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 67(1), deﬁnition of employment income, paragraph (b): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 74C(1), deﬁnition of standard tax: “section NC 8 of the Income Tax Act 2004” is replaced by “section 24B of the Tax Ad- ministration Act 1994”.

Wool Industry Restructuring Act 2003 (2003 No 40) Section 36(1)(b) and (c): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 36(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 36(2)(b) and (4)(b): “section OD 5(5)” is replaced by “sec- tion YC 10”.
Section 36(3): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 36(4), (5) and (6): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 37: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 38(1) and (2): “section OC 3 of the Income Tax Act 2004” is replaced by “section CV 5 of the Income Tax Act 2007” in each place where it appears.
3206 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Wool Industry Restructuring Act 2003 (2003 No 40)—continued Section 39(2) and (3): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.
Schedule 49 Goods and Services Tax Act 1985 section 2, deﬁnitions of income year (and following): item amended (with effect on 1 April 2008), on 29 August 2011 (ap- plying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 49 Goods and Services Tax Act 1985 section 20A(1): item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 49 Injury Prevention, Rehabilitation, and Compensation Act 2001 section 6, deﬁnition of private domestic worker: item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 49 Injury Prevention, Rehabilitation, and Compensation Act 2001 section 11(1)(h)(iii): item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Admin- istration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 49 Insolvency Act 2006 section 274(5)(b) to (d): item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 49 KiwiSaver Act 2006 section 153(d): item repealed (with effect from 1 November 2007), on 19 December 2007, by section 137 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Schedule 49 National Provident Fund Restructuring Amendment Act 1997 sched- ule 2, clause 8(c): item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Schedule 49 Te Arawa Lakes Settlement Act 2006 section 84(2): item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Private Acts ANZ Banking Group (New Zealand) Act 1979 (1979 No 1) Section 7(4): “section OE 4(1)(m) of the Income Tax Act 2004” is replaced by “section YD 4(11)(a) of the Income Tax Act 2007.” 3207 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Countrywide Banking Corporation Limited Act 1994 (1994 No 1) Section 9(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Museum of Transport and Technology Act 2000 (2000 No 1) Section 19(4): “sections EE 41 to EE 44 of the Income Tax Act 2004” is replaced by “sections EE 48 to EE 52 of the Income Tax Act 2007”.

National Bank of New Zealand Limited Act 1994 (1994 No 3) Section 9(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Public Service Investment Society Limited Act 1998 (1998 No 3) Section 13(3): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Southland Flood Relief Committee Empowering Act 1992 (1992 No 1) Section 8: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Sydenham Money Club Act 2001 (2001 No 2) Section 18(2) and (3): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Te Runanga O Ngai Tahu Act 1996 (1996 No 1) Section 30(1)(c): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 31(3)(c): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Tower Corporation Act 1990 (1990 No 2) Section 26(2)(a): “section IF 1(1)(a) of the Income Tax Act 2004” is replaced by “section IA 5(2) of the Income Tax Act 2007”.

3208 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Tower Corporation Act 1990 (1990 No 2)—continued Section 26(2)(b): “section IG 1 of the Income Tax Act 2004” is re- placed by “section IA 6 of the Income Tax Act 2007”.
In section 26(2)(c), replace “FDP account under table O4” by “FDP account under section OA 6(3) as described in table O4”, and replace “branch equivalent tax account under table O8” by “branch equiva- lent tax account under section OA 6(5) as described in table O8”.

Section 26(5): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Local Acts Auckland War Memorial Museum Act 1996 (1996 No 4) Section 21(4): “sections EE 37 to EE 44 of the Income Tax Act 2004” is replaced by “sections EE 44 to EE 52 of the Income Tax Act 2007”.

Section 21(5): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Hawke’s Bay Crematorium Act 1944 (1944 No 7) Section 5(3): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Hawke’s Bay Regional Council (Surplus Funds Distribution) Empowering Act 1999 (1999 No 4) Section 5(2): “section ME 8 of the Income Tax Act 2004” is replaced by “sections OB 60 and OB 61 of the Income Tax Act 2007”.

Selwyn Plantation Board Empowering Act 1992 (1992 No 4) Section 17, heading: “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.

Section 17(1): “sections CB 5 to CB 21 of the Income Tax Act 2004” is replaced by “sections CB 6 to CB 23 of the Income Tax Act 2007”.
Section 17(2), (4), and (5): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

3209 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Westpac New Zealand Act 2006 (2006 No 3) Section 4, deﬁnition of Inland Revenue Acts: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 18(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 18(1)(c) and (d): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 18(1)(e): “EW 43, and GD 11 of the Income Tax Act 2004” is replaced by “EW 42, and GB 21 of the Income Tax Act 2007”.

Section 18(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 18(3): “section DB 23 of the Income Tax Act 2004” is re- placed by “section DB 31 of the Income Tax Act 2007”.
Section 19(1), (2), (3), (6)(c), (7), (8), (9), and (10): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 19(1)(a)(ii): “section DB 41” is replaced by “section DB 50”.

Section 19(4): “DB 41 of the Income Tax Act 2004” is replaced by “section DB 50 of the Income Tax Act 2007”.

Section 19(7)(b): “sections EE 37 to EE 44” is replaced by “sections EE 44 to EE 49, and EE 51 and EE 52”.
Section 19(12): “section OB 1 of the Income Tax Act 2004” is re- placed by “section YA 1 of the Income Tax Act 2007”.

Schedule 49 Hawke’s Bay Regional Council (Surplus Funds Distribution) Empow- ering Act 1999 section 5(2): item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxa- tion (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
Regulations Animal Products (Regulated Control Scheme—Bivalve Molluscan Shellﬁsh) Regulations 2006 (SR 2006/38) Regulation 38(1)(b): “section OE 1 or section OE 2 of the Income Tax Act 2004” is replaced by “section YD 1 or YD 2 (excluding section YD 2(2)) of the Income Tax Act 2007”.
3210 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Animal Products (Regulated Control Scheme—Limited Processing Fishing Vessels) Regulations 2001 (SR 2001/334) Regulation 34(1)(c): “section OE 1 or section OE 2 of the Income Tax Act 2004” is replaced by “section YD 1 or YD 2 (excluding section YD 2(2)) of the Income Tax Act 2007”.
Cooperative Dairy Companies Income Tax Regulations 1955 (SR 1955/55) Regulation 2, deﬁnition of available subscribed capital per share: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Regulation 2, deﬁnition of gross income: “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Cooperative Milk Marketing Companies Income Tax Regulations 1960 (SR 1960/1) Regulation 2, deﬁnition of available subscribed capital per share: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Regulation 2, deﬁnition of gross income: “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Cooperative Pig Marketing Companies Income Tax Regulations 1964 (SR 1964/37) Regulation 2, deﬁnition of available subscribed capital per share: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Regulation 2, deﬁnition of gross income: “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Financial Reporting Order 1994 (SR 1994/134) Clause 4, item headed Depreciation, paragraph (a): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

3211 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Financial Reporting Order 1994 (SR 1994/134)—continued Clause 4, item headed Speciﬁed leases: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Clause 4, item headed Speciﬁed leases, paragraph (a): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Fishing Industry Board (Dissolution) Regulations 2002 (SR 2002/211) Regulation 5B(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Forestry Encouragement Grants Regulations 1983 (SR 1983/37) Regulation 2, deﬁnition of Maori authority: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Schedule 1, clause 3: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Health Entitlement Cards Regulations 1993 (SR 1993/169) Regulation 2, deﬁnition of family credit income, paragraph (a): “section KD 1 of the Income Tax Act 2004” is replaced by “subpart MB of the Income Tax Act 2007”.
Regulation 2, in the deﬁnition of family credit income, paragraph (b): “ ‘subpart KD credit’ and any ‘family tax credit’ (as those terms are deﬁned in section OB 1 of the Income Tax Act 2004” is replaced by “family assistance credit and any family tax credit (as that term is deﬁned in section YA 1 of the Income Tax Act 2007”.
Regulation 2, deﬁnition of net income: “net income as deﬁned in section OB 1 of the Income Tax Act 2004” is replaced by “net income as deﬁned in section YA 1 of the Income Tax Act 2007”.

Regulation 2, deﬁnition of net income, paragraph (d): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Regulation 2, deﬁnition of net income, paragraph (e)(i): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
3212 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Health Entitlement Cards Regulations 1993 (SR 1993/169)—con- tinued Regulation 2, deﬁnition of net income, paragraph (e)(ii): “section OE 1 or section OE 2 of the Income Tax Act 2004” is replaced by “section YD 1 or YD 2 (excluding section YD 2(2)) of the Income Tax Act 2007”.
Regulation 2, deﬁnition of Part KD credit is replaced by: “family assistance credit means a credit of tax identiﬁed in Part M of the Income Tax Act 2007, excluding any family tax credit”.

Regulation 2, deﬁnition of tax year: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Regulation 8: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Regulation 8: “subpart KD” is replaced by “subparts MA to MF and MZ” in each place where it appears.

Regulation 8: “subpart KD credit” is replaced by “family assistance credit” in each place where it appears.

Income Tax Act (Exempt Unit Trusts) Order 1990 (SR 1990/254) Clause 2: “section HE 1 of the Income Tax Act 2004” is replaced by “section HD 13 of the Income Tax Act 2007”.
Income Tax (Adverse Event Income Equalisation Scheme Rate of Interest) Regulations 1995 (SR 1995/57) Regulation 2: “section EH 41 of the Income Tax Act 2004” is re- placed by “section EH 40 of the Income Tax Act 2007”.

Income Tax (Calculation of Interest on Fringe Beneﬁt Tax) Regulations 1993 (SR 1993/144) Regulation 2, heading and provisions: “fringe beneﬁt tax” is replaced by “FBT” in each place where it appears.
Regulation 2(a): “section ND 13 of the Income Tax Act 2004” is replaced by “section RD 61 of the Income Tax Act 2007”.

Regulation 2(b): “section ND 14 of the Income Tax Act 2004” is replaced by “section RD 60 of the Income Tax Act 2007”.

3213 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Income Tax (Calculation of Interest on Fringe Beneﬁt Tax) Regulations 1993 (SR 1993/144)—continued Regulation 4: “fringe beneﬁt tax” is replaced by “FBT”.
Regulation 5(1) and (2): “section ND 13 of the Income Tax Act 2004” is replaced by “section RD 61 of the Income Tax Act 2007” in each place where it appears.

Regulation 5(1)(a) and (2)(a): “fringe beneﬁt tax” is replaced by “FBT” in each place where it appears.

Regulation 6(1), item b: “fringe beneﬁt tax” is replaced by “FBT”.

Regulation 6: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Regulation 6: “ND 13” is replaced by “RD 61”.


Regulation 6: “ND 14” is replaced by “RD 60” in each place where it appears.

Regulation 7: “fringe beneﬁt tax” is replaced by “FBT”.

Income Tax (Cook Islands Development Projects) Order 1986 (SR 1986/27) In clause 3: “section CW 47 of the Income Tax Act 2004” is replaced by “section CW 59 of the Income Tax Act 2007”.
Income Tax (Depreciation Determinations) Regulations 1993 (SR 1993/232) Regulation 2: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Income Tax (Refund of Excess Tax) Order 2003 (SR 2003/74) Clause 3, heading: “section MD 1(1A) of the Income Tax Act 2004” is replaced by “section RM 5 of the Income Tax Act 2007”.

Clause 3: “section MD 1(1A) of the Income Tax Act 2004” is re- placed by “section RM 5 of the Income Tax Act 2007”.
Income Tax (Social Assistance Suspensory Loans) Order 1995 (SR 1995/79) In clause 2: “sections EW 47 and EZ 35 of the Income Tax Act 2004” is replaced by “sections EW 45 and EZ 38 of the Income Tax Act 2007”.
3214 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Injury Prevention, Rehabilitation, and Compensation (Earners’ Levy) Regulations 2006 (SR 2006/16) [Repealed] Injury Prevention, Rehabilitation, and Compensation (Earners’ Levy) Regulations 2007 (SR 2007/71) Regulation 3, deﬁnition of tax year: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Injury Prevention, Rehabilitation, and Compensation (Self-Employed Work Account Levies) Regulations 2006 (SR 2006/62) [Repealed] Injury Prevention, Rehabilitation, and Compensation (Work Account Levies) Regulations 2007 (SR 2007/70) Regulation 3, deﬁnition of tax year: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Parental Leave and Employment Protection Regulations 2002 (SR 2002/98) Regulation 8(1)(d): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Securities Act (Telecom Corporation of New Zealand Limited) Exemption Notice 2001 (SR 2001/286) Clause 4(1), deﬁnition of control: “section OD 1(1) of the Income Tax Act 2004” is replaced by “section YC 1(1) of the Income Tax Act 2007”.
Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334) Regulation 13, example 1, item 1 and example 2, item 1: “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007”.
3215 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Social Security (Temporary Additional Support) Regulations 2005 (SR 2005/334)—continued Schedule 1, clause 3(b): “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007”.

Schedule 1, clause 3(b)(i): “section KD 6 or section KD 7 of that Act” is replaced by “section 80KI to 80KU of the Tax Administration Act 1994”.
Schedule 3, part 1, clause 1(b): “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007” Securities Regulations 1983 (SR 1983/121) Regulation 2(1), deﬁnition of associated persons or persons asso- ciated with each other: “Income Tax Act 2004” is replaced by “In- come Tax Act 2007”.
Student Allowances Regulations 1998 (SR 1998/277) Regulation 2(1), deﬁnition of foreign-sourced amount: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Regulation 2(1), deﬁnition of personal income, paragraph (d): “In- come Tax Act 2004” is replaced by “Income Tax Act 2007”.

Regulation 2(1), deﬁnition of taxable income: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Regulation 2(1), deﬁnition of tax year: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Superannuation Schemes (Fees) Regulations 1992 (SR 1992/284) Schedule, part 2, clause 1: “section GD 8 of the Income Tax Act 2004” is replaced by “section EY 11 of the Income Tax Act 2007”.

Tax Administration (Binding Rulings) Regulations 1999 (SR 1999/236) Regulation 3(1A)(a): “section FB 2 of the Income Tax Act 2004” is replaced by “section YD 5 of the Income Tax Act 2007”.
3216 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 49 Tax Administration (Binding Rulings) Regulations 1999 (SR 1999/236)—continued Regulation 3(1A)(b): “section GD 13” is replaced by “sections GC 6 to GC 14”.

Taxation (Abated Interim Payments of Part KD Credit) Regulations 2002 (SR 2002/52) Regulation 1: “Subpart KD” is replaced by “subparts MA to MF and MZ”.
Regulation 3, heading and subclause (1): “section KD 6(1)(b) of the Income Tax Act 2004” is replaced by “section 80KN(1)(b) of the Tax Administration Act 1994”.

Taxation (Australian Wine Equalisation Tax Rebate) Regulations 2006 (SR 2006/105) Regulation 4, deﬁnition of Australian ﬁnancial year: “section CV 4(3) of the Income Tax Act 2004” is replaced by “section CV 8(3) of the Income Tax Act 2007”.
Regulation 4, deﬁnition of Australian wine producer rebate: “sec- tion OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Taxation Review Authorities Regulations 1998 (SR 1998/460) Schedule, form 1: “the Income Tax Act 1994, the Income Tax Act 2004” is replaced by “the Income Tax Act 2004, the Income Tax Act 2007”.

Taxation (Use of Money Interest Rates) Regulations 1998 (SR 1998/105) Regulation 1(2)(a): after “2004”, insert “or the Income Tax Act 2007”.
Taxation (Use of Money Interest Rates Setting Process) Regulations 1997 (SR 1997/7) Regulation 1(2)(a): after “2004”, insert “or the Income Tax Act 2007”.

3217 Schedule 49 Income Tax Act 2007 Reprinted as at 29 May 2012 Telecommunications (Information Disclosure) Regulations 1999 (SR 1999/383) Regulation 2, deﬁnition of subvention payment: “section IG 1 of the Income Tax Act 2004” is replaced by “sections IA 6 and IC 1 to IC 6 of the Income Tax Act 2007”.
Schedule 49 Injury Prevention, Rehabilitation, and Compensation (Earners’ Levy) Regulations 2006: item repealed, on 1 April 2008, by section 560 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 49 Injury Prevention, Rehabilitation, and Compensation (Earners’ Levy) Regulations 2007: item inserted, on 1 April 2008, by section 560 of the Taxation (Busi- ness Taxation and Remedial Matters) Act 2007 (2007 No 109).
Schedule 49 Injury Prevention, Rehabilitation, and Compensation (Self-Employed Work Account Levies) Regulations 2006: item repealed, on 1 April 2008, by section 560 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 49 Injury Prevention, Rehabilitation, and Compensation (Work Account Levies) Regulations 2007: item inserted, on 1 April 2008, by section 560 of the Taxa- tion (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Schedule 49 Taxation (Abated Interim Payments of Part KD Credit) Regulations 2002 regulation 1: item amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
3218 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Schedule 50 Amendments to Tax Administration Act 1994 s ZA 2 Tax Administration Act 1994 (1994 No 166) Section 2 Section 2(4): “the Income Tax Act 2007”, is inserted before “the Income Tax Act 2004”.

Section 3 Section 3(1), deﬁnition of accounting period: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of activities undertaken as an airport op- erator: “activities as an airport operator in section OC 1(6) of the Income Tax Act 2004” is replaced by “airport operator activities in section HR 7 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of assessment: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 3(1), deﬁnition of authorised savings institution: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of base amount: “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of basis of exemption: “has the meaning given by section NF 9(2) of the Income Tax Act 2004” is replaced by “is the basis of exemption referred to in section 32E(2)”.
Section 3(1), deﬁnition of certiﬁcate of exemption: repeal.

Section 3(1), deﬁnition of combined tax and earner premium de- duction or combined tax and earner levy deduction: replace by the following: “combined tax and earner-related payment— “(a) unless paragraph (b) applies, has the same meaning as in section YA 1 of the Income Tax Act 2007: is deﬁned in section 167(4) of this Act for the purposes of that section”.
“(b) 3219 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 3—continued Section 3(1), deﬁnition of commercial production: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of consideration: “section OB 1 of the In- come Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of contract payment: “regulation 2(1) of the Income Tax (Withholding Payments) Regulations 1979” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of co-operative company: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of disposition: “paragraph (d) of the deﬁn- ition of dispose in section OB 1 of the Income Tax Act 2004” is re- placed by “paragraph (e) of the deﬁnition of dispose in section YA 1 of the Income Tax Act 2007”.

Section 3(1), after the deﬁnition of disqualifying penalty: insert the following: “dividend treated as interest, in sections 25 and 51 of this Act, has the same meaning as in section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of employer: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of exploratory well: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of exploratory well expenditure: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of family certiﬁcate of entitlement: “cer- tiﬁcate” is replaced by “notice” in each place where it appears.
Section 3(1), deﬁnition of family certiﬁcate of entitlement: “sec- tion KD 5 of the Income Tax Act 2004 in respect of the estimated entitlement of that person to a credit of tax allowable under section KD 2 or, as the case may be, sections KD 2 and KD 3 of that Act” is 3220 Reprinted as at 29 May 2012 Section 3—continued Income Tax Act 2007 Schedule 50 replaced by “section 80KD for the estimated entitlement of the per- son to a tax credit under the family scheme in subparts MA to MF and MZ of the Income Tax Act 2007”.
Section 3(1), deﬁnition of ﬁrst PAYE period: replace by the follow- ing: “ﬁrst payment period, in section 47 and 173 of this Act, has the same meaning as in section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of fringe beneﬁt: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 3(1), deﬁnition of gift-exempt body, paragraph (a): “any of the paragraphs of section KC 5(1) of the Income Tax Act 2004” is replaced by “schedule 32 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of gift-exempt body, paragraph (b): “a cer- tiﬁcate of exemption in accordance with section NF 9 of that Act as a result of an application made in which application the basis for ex- emption claimed is that set out in subsection (1)(i) or subsection (1)(j) of that section” is replaced by “an RWT exemption certiﬁcate under section 32E as a result of an application made claiming the basis for exemption set out in section 32E(2)(k) or (l)”.
Section 3(1), deﬁnition of gift-exempt body, paragraph (b): “such a certiﬁcate of exemption” is replaced by “the certiﬁcate”.

Section 3(1), deﬁnition of government agency: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 3(1), deﬁnition of GST ratio: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of instalment date: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of interest instalment date: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of life insurer: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
3221 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 3—continued Section 3(1), after the deﬁnition of life insurer: insert the following: “Maori authority distribution penalty tax means tax payable under section 140CB”.

Section 3(1), after the deﬁnition of Minister: insert the following: “new provisional taxpayer means a person who has an initial provisional tax liability as described in section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of PAYE period: “has the same meaning as in section NC 15(8) of the Income Tax Act 2004” is replaced by “means ﬁrst payment period or second payment period, as applic- able”.

Section 3(1), deﬁnition of payment: “paragraph (g) of the deﬁnition of pay in section OB 1 of the Income Tax Act 2004” is replaced by “paragraph (a) of the deﬁnition of pay in section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of permit area: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of petroleum mining operations: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of policyholder net loss: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of prescribed: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 3(1), after the deﬁnition of prescribed: insert the following: “primary employment earnings, for an employee and for a pay period, means a PAYE income payment that is not a schedular payment or an extra pay, when the payment meets 1 of the following requirements: “(a) the payment is derived by the employee in the pay period from 1 employer: the payment is the largest payment derived by the em- ployee in the pay period, if the employee derives pay- ments in the period from 2 or more employers: “(b) 3222 Reprinted as at 29 May 2012 Section 3—continued Income Tax Act 2007 Schedule 50 “(c) the payment is derived in the pay period and is of the same amount as another payment that the employee chooses, if the employee derives payments in the period from 2 or more employers and 2 or more of the pay- ments are of the same amount”.
Section 3(1), deﬁnition of property: “paragraph (d) of the deﬁnition of that term in section OB 1 of the Income Tax Act 2004” is replaced by “paragraph (b) of the deﬁnition of that term in section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of provisional taxpayer: replace by the fol- lowing: “provisional taxpayer means a person who is liable to pay provisional tax under section RC 3 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of qualifying person: “section 84(6) for the purposes of that section” is replaced by “sections 83(7), 84(6), and 85G(6) for the purposes of those sections”.

Section 3(1), deﬁnition of qualifying resident foreign trustee, para- graph (b)(i): “section OE 1 of the Income Tax Act 2004” is replaced by “section YD 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of ratio instalment date: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), before the deﬁnition of record: insert the following: “reconciliation statement means a reconciliation statement under section 49”.

Section 3(1), deﬁnition of relinquishment: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of resident foreign trustee, paragraph (b): “section OE 1 or section OE 2 of the Income Tax Act 2004” is re- placed by “section YD 1, YD 2, or YD 3 (excluding section YD 2(2)) of the Income Tax Act 2007”.

Section 3(1), deﬁnition of residual income tax, paragraph (b): “sec- tion OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
3223 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 3—continued Section 3(1), after the deﬁnition of return period: insert the follow- ing: “RWT exemption certiﬁcate has the same meaning as in sec- tion YA 1 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of second PAYE period: replace by the fol- lowing: “second payment period, in sections 47 and 173(1)(b) of this Act, has the same meaning as in section YA 1 of the Income Tax Act 2007 “secondary employment earnings, for an employee and for a pay period, means a PAYE income payment that— “(a) is derived by the employee in the pay period from an employer; and is not— “(i) “(ii) “(iii) an extra pay”.
a payment of primary employment earnings; or a schedular payment; or “(b) Section 3(1), deﬁnition of settlement: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of settlor: “has the same meaning as in para- graphs (a) and (b) of the deﬁnition of that term in section OB 1 of the Income Tax Act 2004” is replaced by “is deﬁned in section HC 27 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of special account: repeal.
Section 3(1), after the deﬁnition of shortfall penalty: insert the fol- lowing: “special tax code certiﬁcate means a special tax code certiﬁ- cate under section 24F”.

Section 3(1), deﬁnition of speciﬁed dividends: repeal.

Section 3(1), deﬁnition of tax, paragraphs (a)(iii)(A) and (d)(iii)(A): “a dividend withholding payment” is replaced by “FDP” in each place where it appears.
Section 3(1), deﬁnition of tax, paragraphs (a)(xi) and (ca)(iii): “re- bate” is replaced by “tax credit” in each place where it appears.

3224 Reprinted as at 29 May 2012 Section 3—continued Income Tax Act 2007 Schedule 50 Section 3(1), deﬁnition of tax, paragraph (a)(xiii): “section NBB 6 of the Income Tax Act 2004” is replaced by “section RP 4 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of tax, paragraph (ab): “section CV 4 of the Income Tax Act 2004” is replaced by “section CV 8 of the Income Tax Act 2007”.

Section 3(1), deﬁnition of tax, after paragraph (ca): insert the fol- lowing: “(cb) for the purposes of sections 156 to 165, includes a com- bined tax and earner-related payment:”.
Section 3(1), after the deﬁnition of tax agent: insert the following: “tax code certiﬁcate means a tax code certiﬁcate under sec- tion 24I(2) “tax code notiﬁcation means a tax code notiﬁcation under section 24I(1)”.

Section 3(1), deﬁnition of tax deduction: repeal.

Section 3(1), deﬁnition of tax position, paragraph (h): replace by the following: “(h) the availability of a tax loss component or loss balance, or the use of a tax loss component or loss balance:”.
Section 3(1), deﬁnition of tax position, paragraph (j): replace by the following: “(j) the balance of a tax account or memorandum account of any type or description, or a debit or credit to such an account:”.

Section 3(1), deﬁnition of tax position, paragraph (n): “rebate” is replaced by “tax credit”.

Section 3(1), deﬁnition of tax position, paragraph (o): “section NBB 6 of the Income Tax Act 2004” is replaced by “section RP 4 of the Income Tax Act 2007”.
Section 3(1), deﬁnition of withdrawal tax: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.

Section 3(2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

3225 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 4A Section 4A(1)(b)(ii): replace by the following: “(ii) paying, deducting, or withholding, or not paying, not deducting, or not withholding, an amount of tax; or”.
Section 4A(2)(a) to (bb): replace by the following: “(a) “(b) a company is deemed to withhold FDP when a foreign dividend is paid to the company: an amount of tax is deemed to be withheld when pay- ment is made of the net amount of a PAYE income pay- ment: “(bb) a contribution deduction under the KiwiSaver Act 2006 is deemed to be made when payment is made of the net amount of a PAYE income payment:”.
Section 4A(2)(c) and (d): “of a deduction” is replaced by “withheld or deducted” in each place where it appears.
Section 4A(3), words before paragraph (a): replace by the following: “(3) References in this Act to tax liabilities for withholding or de- ducting an amount of tax, or making or accounting for amounts deducted or amounts withheld, under the PAYE rules, to the extent necessary, are also to be construed as including refer- ences to liabilities for withholding, deducting, making, or ac- counting for,—”.
Section 4A(4), words before paragraph (a): “Where a taxpayer re- quired to provide a return under any of sections NC 15, NF 4, NG 11, and NH 3 of the Income Tax Act 2004” is replaced by “When a tax- payer has an obligation under any of sections RA 5, RA 6, RA 10, RA 15 to RA 19, RD 2, RD 4, RD 22, RE 20, RE 21, RF 13, RG 3, or RG 6 of the Income Tax Act 2007”.

Section 4B Section 4B(1): “section CV 4 of the Income Tax Act 2004” is re- placed by “section CV 8 of the Income Tax Act 2007”.
Section 14C Section 14C(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
3226 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 17 Section 17(1C)(a)(ii): “section OD 7, interpreted as if relative had the meaning set out in paragraph (b) of the deﬁnition in section OB 1, or OD 8(3) of the Income Tax Act 2004” is replaced by “subpart YB of the Income Tax Act 2007 (to the extent to which those rules apply for the whole of that Act excluding the 1973, 1988, and 1990 version provisions), interpreted as if relative had the meaning set out in paragraph (b) of the deﬁnition in section YA 1, or the rules for the 1988 version provisions of that Act”.
Section 22 Section 22(1)(c)(iii) and (iv): “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007” in each place where it appears.

Section 22(1)(c)(v): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 22(2)(c): “SSCWT rules apply and who makes any speciﬁed superannuation contribution” is replaced by “ESCT rules apply and who makes an employer’s superannuation contribution”.
Section 22(2)(f): replace by the following: “(f) is a company that is an ICA company, a FDPA company, a BETA company, a BETA person, a PCA company, or a PCA person:”.

Section 22(2)(j): “foreign withholding payment dividend” is re- placed by “foreign dividend”.
Section 22(2)(k) and (kb): replace by the following: “(k) every credit and debit to the person’s memorandum ac- counts (other than a CTR account and an ASC account), and the amount of a credit attached to a dividend or dis- tribution paid by the person:”.

Section 22(2)(l): “speciﬁed superannuation contribution” is replaced by “employer’s superannuation contribution” in each place where it appears.
Section 22(2), words after the paragraphs: “(for paragraphs (k) and (kb)) imputation year” is replaced by “(for paragraph (k)) the tax or income year (as applicable)”.

Section 22(3) and (6)(b): “deducted” is replaced by “withheld or de- ducted” in each place where it appears.
3227 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 22—continued Section 22(7)(c): replace by the following: “(c) accounts (whether contained in a manual, mechanical, or electronic format) to be maintained under the im- putation rules, the FDP rules, or section OA 3 for ac- counts under subparts OE and OJ, and sections OP 97 to OP 108 of the Income Tax Act 2007, and any state- ment to be retained under section 31 or 71 of this Act:”.
Section 22A Section 22A, heading, and subsections (1) and (2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 22B Section 22B(1): “section EW 46 or EZ 36” is replaced by “section EW 44 or EZ 39 of the Income Tax Act 2007”.
Section 24 Section 24(1): replace by the following: “(1) An employer who makes a PAYE income payment to an employee must keep a proper record relating to the employee, showing the amount of the PAYE income payment before tax and the amount of the tax withheld from it, and must enter those amounts in the record at the time of making the PAYE income payment.” Section 24(2): “source deduction payments, tax deduction certiﬁ- cates, tax code declarations” is replaced by “PAYE income payments, withholding certiﬁcates, tax code notiﬁcations”.
Section 24(2): “Income Tax Act 2004 to deliver to the Commissioner or to any other person the signed tax deduction certiﬁcates, tax code declarations” is replaced by “Income Tax Act 2007 to deliver to the Commissioner or to any other person the signed withholding certiﬁ- cates, tax code notiﬁcations”.

Section 24(2), proviso: “tax code declarations,” is replaced by “tax code notiﬁcations,”.
3228 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 24B to 24P After section 24: insert the following: “PAYE tax codes “24B PAYE tax codes “(1) This section applies for the purposes of the PAYE rules to pro- vide an employee with a tax code for a PAYE income payment.

Subsection (2) overrides this subsection.

“(2) Subsection (1) does not apply to the following amounts: “(a) “(b) “(c) an extra pay: a schedular payment: a payment of an income-tested beneﬁt.
“(3) An employee must notify their employer that their tax code is 1 of the following: “(a) ‘M’ for primary employment earnings when the em- ployee is not entitled to a tax credit under section LC 4 of the Income Tax Act 2007: ‘ML’ for primary employment earnings when the em- ployee is entitled to a tax credit under section LC 4 of the Income Tax Act 2007: ‘S’ for secondary employment earnings for an employee whose annual income is not more than $38,000: ‘SH’ for secondary employment earnings for an em- ployee whose annual income is more than $38,000 but is not more than $60,000: ‘ST’ for secondary employment earnings for an em- ployee whose annual income is more than $60,000: ‘CAE’ for salary or wages for employment as a casual agricultural employee: ‘EDW’ for salary or wages for employment as an elec- tion day worker: ‘no notiﬁcation’ when the employee has not provided their employer with a tax code notiﬁcation or a tax code certiﬁcate.
“(b) “(c) “(d) “(e) “(f) “(g) “(h) “(4) If another Act requires an employer to withhold the amount of tax for a PAYE income payment to an employee and pay the amount to the Commissioner, the tax code may be combined with another code applying under that Act.
“Compare: 2004 No 35 s NC 8(1), (1AA) 3229 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 24B to 24P—continued “24C Tax code for payment that includes income-tested beneﬁt If an employee receives a PAYE income payment of an in- come-tested beneﬁt and a PAYE income payment that does not consist of an income-tested beneﬁt, the tax code ‘S’ applies to the payment that does not consist of an income-tested beneﬁt.
“Compare: 2004 No 35 s NC 8(1) proviso “24D Tax code for parental leave payment The tax code applying to an employee’s parental leave pay- ment under Part 7A of the Parental Leave and Employment Protection Act 1987 is their tax code before the parental leave from their employment started unless the employee provides a further tax code notiﬁcation.
“Compare: 2004 No 35 s NC 8(9A) “24E Tax code for employment as private domestic worker An employee who wishes to have a tax code for their employ- ment as a private domestic worker may provide their tax code notiﬁcation to the Commissioner.
“Compare: 2004 No 35 s NC 8(12) “24F Special tax code certiﬁcates “(1) The Commissioner may provide an employee with a special tax code certiﬁcate, whether because the employee has 2 or more employments, or is entitled to have a net loss carried forward, or wishes to have a reduction applying to the amount of tax withheld under section 24H(1), or for another reason.
“(2) The special tax code may— “(a) “(b) set out a tax code to apply to a payment of salary or wages to an employee by 1 or more of their employers for a period referred to in the certiﬁcate: require that no amount of tax is withheld from, or a particular rate of tax applies to, a proportion of a PAYE income payment of the employee, as if it were the whole payment.
“(3) The Commissioner must calculate, for the PAYE income pay- ments and period referred to in the certiﬁcate, and set out in 3230 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 24B to 24P—continued the certiﬁcate, the amount of tax for the payments or the rate of tax applying to them, having regard to the amount of tax for the payments that would be required under sections RD 9 to RD 11 of the Income Tax Act 2007.
“(4) When an employee provides a special tax code certiﬁcate to their employer, the provisions of the certiﬁcate override any- thing in the Income Tax Act 2004 and this Act other than the employee’s duties under sections RA 8, RA 10, and RD 4(2) of the Income Tax Act 2007.

“(5) An employee’s entitlement under subparts MA to MF and MZ of the Income Tax Act 2007 is not taken into account in setting a tax code for a special tax code certiﬁcate.
“(6) The Commissioner may cancel a special tax code certiﬁcate at any time, and on notiﬁcation of the cancellation, the employee must return the certiﬁcate to the Commissioner within a period of 7 days.

“Compare: 2004 No 35 s NC 14 “24G Use of incorrect tax codes “(1) This section applies when the Commissioner considers that an employer or PAYE intermediary has used an incorrect tax code in relation to a PAYE income payment to an employee.
“(2) The Commissioner may notify the employer or PAYE inter- mediary of the incorrect code and provide the tax code that should apply to the PAYE income payment.

“(3) The employer or PAYE intermediary must use the tax code provided by the Commissioner in relation to a PAYE income payment made to the employee after the date of notiﬁcation.

But the tax code does not apply if the employee notiﬁes their employer that their circumstances have changed and, as a re- sult, a different tax code should apply.
“Compare: 2004 No 35 s NC 12A(1)–(3) “24H When entitlement to use tax code ends “(1) This section applies when an employee is no longer entitled to use a certain tax code.

3231 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 24B to 24P—continued “(2) The tax code does not apply to a PAYE income payment made to the employee after the date on which the entitlement ends, unless the payment is salary or wages for a current pay period.
“(3) The employee must notify their employer that their entitlement has ended within the period of 4 days after the date on which they became aware that they are no longer entitled to use the tax code.

If the employee provides the notiﬁcation to the Com- missioner, they must notify the Commissioner similarly.

“(4) For the purposes of subsection (3), the employee must give the reason why the tax code no longer applies and the date on which entitlement ended.
If the employee provides their employer with a tax code noti- ﬁcation or tax code certiﬁcate within the period of 7 days after the date on which they become aware that they are no longer entitled to use a tax code, the tax code in the notiﬁcation or certiﬁcate applies from the date on which the entitlement to use the earlier code ends.
“(5) “(6) When an employee’s entitlement to use a certain tax code ends, their employer is not liable for withholding a reduced amount of tax for a payment if they have not received notice that the entitlement has ended.

“(7) An employee is not entitled to use the tax code ‘ML’ in a tax year if the employee knows or expects, or should have known or expected, that they will not be entitled to a tax credit under section LC 4 of the Income Tax Act 2007.
“Compare: 2004 No 35 ss NC 8(7), (8), NC 9 “24I PAYE tax code notiﬁcation and certiﬁcate “(1) An employee who wishes to have the amount of tax for a PAYE income payment reduced may notify their employer of the ap- plicable tax code.

This subsection applies separately for each employment situation.
If an employee ﬁnds it difﬁcult or impractical to notify their employer as described in subsection (1), they may notify the Commissioner who must then provide a tax code certiﬁcate to the employer setting out the applicable tax code.

The em- ployee may give the certiﬁcate to their employer.
“(2) 3232 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 24B to 24P—continued “(3) The tax code notiﬁed or set out in a tax code certiﬁcate applies to a PAYE income payment made to an employee by their em- ployer from— “(a) the ﬁrst day of a pay period to which the payment re- lates up to the date on which the employee is no longer entitled to use the particular tax code if— “(i) the employer has no earlier tax code for the em- ployee; or the notiﬁcation or certiﬁcate changes an earlier tax code for the employee and is provided before the date on which the employer calculates their payroll for the period: “(ii) “(b) the ﬁrst day of the pay period following that to which the payment relates if the notiﬁcation or certiﬁcate changes an earlier tax code for the employee and is provided after the date on which the employer calculates their payroll for the period.
“(4) A tax code notiﬁcation must provide for an employee’s state- ment of their entitlement under the Immigration Act 1987 to work for their employer.

“(5) A tax code notiﬁcation or tax code certiﬁcate delivered to an employer before the start of the tax year but expressed to relate to the tax year, is treated as if it is delivered on 1 April in the tax year.
“Compare: 2004 No 35 ss NC 8(2)–(4), (11), NC 8A “PAYE certiﬁcates, notiﬁcation, and applications “24J Proof of payment “(1) An employer or PAYE intermediary who is required to with- hold and pay to the Commissioner an amount of tax for a PAYE income payment must provide a PAYE payment form to the Commissioner by the applicable due date set out in section RA 15 of the Income Tax Act 2007.
3233 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 24B to 24P—continued “(2) If the PAYE payment form is not provided electronically, it must be signed by the employer or PAYE intermediary, as ap- plicable.

“(3) The Commissioner may release an employer or a class of em- ployers, or a PAYE intermediary or a class of PAYE intermedi- aries, from the requirement to provide a PAYE payment form if the information is contained in an employer monthly sched- ule.
“Compare: 2004 No 35 s NC 15(1), (2), (2B) “24K Certain information required in returns “(1) This section applies for the purposes of sections RE 23 and RE 24 of the Income Tax Act 2007 when— “(a) an amount of tax for resident passive income paid in a tax year by a company is treated as an FDP credit: an amount of tax for a taxable Maori authority distribu- tion is treated as a Maori authority credit attached to the distribution.
“(b) “(2) The company paying the dividend and withholding the amount of tax under section RA 6(1) of that Act must provide to the Commissioner information in relation to the amount of tax in— “(a) “(b) its annual FDPA return under section 71; or if paragraph (a) does not apply, its annual ICA return under section 69.
“(3) For the purposes of subsection (2) and the payment of the divi- dend, the company must provide to the Commissioner infor- mation in relation to the dividend in— “(a) its dividend statement under section 67 if it is an ICA company; or if paragraph (a) does not apply, a form approved by the Commissioner, containing the information set out in section 67(a) to (c) and (f) and ﬁled no later than 31 May after the end of the tax year.
“(b) “(4) The Maori authority making the distribution and withholding the amount of tax under section RA 6(1) of the Income Tax Act 3234 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 24B to 24P—continued 2007 must provide to the Commissioner information in rela- tion to the amount of tax in its annual Maori authority credit account return.
“(5) For the purposes of subsection (4) and the making of the distri- bution, the Maori authority must provide to the Commissioner information in relation to the distribution in the distribution statement prepared under section 68B.

“Compare: 2004 No 35 ss NF 8(2)–(4), NF 8A “24L Schedular notiﬁcation “(1) This section applies to a person who is entitled to receive a schedular payment described in section RD 8 of the Income Tax Act 2007.
“(2) Before the person receives the schedular payment, they must notify the person making the payment of the applicable schedular tax code.

“(3) The notiﬁcation referred to in subsection (2) must be in a form authorised by the Commissioner.
“Compare: 2004 No 35 s NC 7(1) “24M Exemption certiﬁcates for schedular payments “(1) The Commissioner may provide a person who is entitled to receive a schedular payment with an exemption certiﬁcate set- ting out the payments for a period for which no amount of tax is to be withheld.

“(2) Subsection (1) does not apply to a payment to a non-resident entertainer.

“(3) The Commissioner may cancel an exemption certiﬁcate at any “(4) time.
If the Commissioner cancels an exemption certiﬁcate, the per- son who was provided the certiﬁcate must return it within 7 days of the date of cancellation.

3235 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 24B to 24P—continued “(5) An exemption certiﬁcate must not be altered or be used to cause a person making a schedular payment not to withhold an amount of tax for the payment.
“Compare: SR 1979/259 regulation 5, Income Tax (Withholding Payments) Regulations “24N Special tax rate certiﬁcates for schedular payments “(1) The Commissioner may provide a person who is entitled to receive a schedular payment with a special tax rate certiﬁcate setting out the amount of tax for the payment, or the rate ap- plying to the payment or a part of each payment as if it were the whole payment.

“(2) Subsection (1) does not apply to a payment to a non-resident entertainer.
“(3) The Commissioner may cancel a special tax rate certiﬁcate at any time.

The Commissioner must give notice of the cancel- lation.

If the Commissioner cancels a special tax rate certiﬁcate, the person who was provided the certiﬁcate must return it within 7 days of the date of notiﬁcation of the cancellation.

“(4) “(5) A special tax rate certiﬁcate must not be altered or be used to cause a person making a schedular payment not to withhold an amount of tax for the payment.
“Compare: SR 1979/259 regulation 6A, Income Tax (Withholding Payments) Regulations “24O Certain information required from agricultural, horticultural, or viticultural employers “(1) This section applies when an agricultural, horticultural, or viti- cultural employer makes a schedular payment for work done or services rendered in a class set out in schedule 4, part C, clause 1(b) of the Income Tax Act 2007.
If the employer is required to provide an employer monthly schedule to the Commissioner for a particular period, and no amount of tax for the payment is required to be made because an exemption certiﬁcate or special tax rate certiﬁcate has been provided under section 24M or 24N, as applicable, the em- “(2) 3236 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 24B to 24P—continued “(3) ployer must include in the schedule the information set out in subsection (4).
If the employer is not required to provide an employer monthly schedule for a month, the employer must provide the informa- tion set out in subsection (4) in relation to the payment by the 20th day of the month following that in which the payment is made.
“(a) “(b) “(c) “(4) The information referred to in subsections (2) and (3) is— the name and tax ﬁle number of the employer; and the name of the person who received the payment; and the tax ﬁle number of the person who received the pay- ment if the employer has been supplied the number; and the gross amount of the payment; and the date of the payment; and the number of an exemption certiﬁcate or special tax rate certiﬁcate provided to the person who received the payment if the employer has been supplied the number.
“Compare: SR 1979/259 regulation 12A, Income Tax (Withholding Payments) Regulations “(d) “(e) “(f) “24P Variation of requirements The Commissioner may vary the requirements set out in sec- tions 24B, 24H, and 24I for a person or a class of persons.

“Compare: 2004 No 35 ss NC 7(3), NC 8(10), NC 15(3)”.
Section 25 Section 25, heading and subsection (1): replace by the following: “25 RWT withholding certiﬁcates “(1) Subsection (1B) applies when a person withholds RWT for resident passive income paid to or derived by any other person that is— “(a) “(b) “(c) interest; or a dividend treated as interest; or a dividend to which section RE 9(2) of the Income Tax Act 2007 applies.
“(1B) The person must prepare an RWT withholding certiﬁcate that contains the information set out in subsection (6).” 3237 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 25—continued Section 25(2), (6)(a), (7), and (9): “resident withholding income” is replaced by “resident passive income” in each place where it appears.

Section 25(2)(a) and (b): “that resident withholding tax deduction certiﬁcate” is replaced by “the RWT withholding certiﬁcate” in each place where it appears.
Section 25(2), (3), and (10): “a resident withholding tax deduction certiﬁcate” is replaced by “an RWT withholding certiﬁcate” in each place where it appears.

Section 25(8): “Every resident withholding tax deduction certiﬁcate shall” is replaced by “An RWT withholding certiﬁcate must”.

Section 25(9): “resident withholding tax deduction certiﬁcate” is re- placed by “RWT withholding certiﬁcate”.
Section 25(2), (2)(a) and (b), and (9): “(in the case of a deduction of resident withholding tax made in accordance with section NF 3 of the Income Tax Act 2004)” is replaced by “(as applicable)” in each place where it appears.
Section 25(3): “any deduction of resident withholding tax made dur- ing that year if the ﬁnancial arrangement in relation to which the de- duction of resident withholding tax was made” is replaced by “RWT withheld during that year for resident passive income that relates to a ﬁnancial arrangement, if the ﬁnancial arrangement”.

Section 25(3): “tax deduction certiﬁcate” is replaced by “withhold- ing certiﬁcate”.

Section 25(4)(a): “make any resident withholding tax deductions” is replaced by “withhold RWT”.
Section 25(4) and (5): “a valid certiﬁcate of exemption” is replaced by “an RWT exemption certiﬁcate” in each place where it appears.

Section 25(4) and (5): “any resident withholding tax deduction cer- tiﬁcates” is replaced by “an RWT withholding certiﬁcate” in each place where it appears.

Section 25(5): “make resident withholding tax deductions” is re- placed by “withhold RWT”.
Section 25(6) and (6A): replace by the following: “(6) An RWT withholding certiﬁcate must include the following: a statement as to whether the resident passive income is interest, a dividend treated as interest, or a dividend “(a) 3238 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 25—continued to which section RE 9(2) of the Income Tax Act 2007 applies: the date on which the RWT was withheld, or if there is more than 1 instance, the year in which the amounts were withheld: the amount of resident passive income and the amount of RWT withheld: the basic tax rate that applied to the resident passive income.
“(b) “(c) “(d) “(6B) The Commissioner may prescribe a formula for determining the average basic tax rate that is to be applied to resident pas- sive income.” Section 25(7): “a resident withholding tax certiﬁcate with respect to any interest from which the person has in any tax year made a deduc- tion of resident withholding tax” is replaced by “an RWT withholding certiﬁcate relating to any interest from which the person has in a tax year withheld RWT”.
Section 25(7)(b): replace by the following: “(b) the RWT withheld was from resident passive income that is interest, and the amount was required to be with- held by the person under section RE 7 or RE 8 of the Income Tax Act 2007, and the total amount of the resi- dent passive income, being interest, paid by the person in that tax year to the recipient of the interest is no more than $50,—”.
Section 25(11): replace by the following: “(11) In this section, a dividend that is resident passive income paid by an RWT proxy as described in section RE 3(1)(c) of the Income Tax Act 2007 is treated as being interest.” Section 26 Section 26, heading: “purposes of resident withholding tax” is re- placed by “RWT purposes”.
Section 26(1): “to make payments of resident withholding tax in re- lation to resident withholding income paid to or derived (in the case of a deduction of resident withholding tax made in accordance with 3239 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 26—continued section NF 3 of the Income Tax Act 2004)” is replaced by “to pay RWT for resident passive income paid to or derived (as applicable)”.
Section 26(1): “each such amount of resident withholding income” is replaced by “each amount of resident passive income”.

Section 26(1)(a) to (d): replace by the following: “(a) “(b) “(c) “(d) the amount of the resident passive income before with- holding RWT: the amount of RWT withheld: the date on which the RWT was required to be withheld: the full name and last known address of the recipient of the payment or the person deriving the resident passive income, as applicable:”.
Section 26(2): “in accordance with the Income Tax Act 2004 to pay resident withholding tax in relation to any amount paid to or derived (in the case of a deduction of resident withholding tax made in ac- cordance with section NF 3 of that Act)” is replaced by “under the Income Tax Act 2007 to pay RWT for an amount of resident passive income paid to or derived (as applicable)”.
Section 26(2): “a valid certiﬁcate of exemption issued under section NF 9(1)(i) and (j)” is replaced by “an RWT exemption certiﬁcate given under section RE 27”.

Section 26(2)(a): “a resident withholding tax payment” is replaced by “the payment of RWT”.

Section 26(3) and (3)(a): “speciﬁed dividends” is replaced by “divi- dends treated as interest” in each place where it appears.
Section 27 Section 27(1): “resident withholding income in respect of which a resident withholding tax payment is required to be made” is replaced by “resident passive income from which RWT must be withheld”.
3240 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 28 Section 28: replace by the following: “28 Recipient of resident passive income to provide tax ﬁle number when RWT not withheld A person who receives from a payment of resident passive in- come, that is interest, must provide their tax ﬁle number to the payer within 10 working days of receiving a request by notice from the payer, if no requirement to withhold RWT arises be- cause— “(a) the payment was not made by the payer in the course of, or furtherance of, a taxable activity: section RE 10 of the Income Tax Act 2007 applies.” “(b) “(d) “(e) Section 29 Section 29(1): “(not being a speciﬁed dividend) from which resident withholding tax has been deducted, or a dividend with an imputation credit or a dividend withholding payment credit attached or a conduit tax relief credit attached” is replaced by “(not being a dividend treated as interest) from which RWT has been withheld, or a dividend with an imputation credit, an FDP credit, or a CTR credit attached”.
Section 29(1)(d) and (e): replace by the following: the amount of RWT withheld, if any: the amount of NRWT withheld, if any:”.

Section 29(1)(i): “a dividend withholding payment credit” is re- placed by “an FDP credit”.

Section 29(1)(ia): “conduit tax relief credit” is replaced by “CTR credit”.

Section 29(1B): “Australian imputation credit account company” is replaced by “Australian ICA company”.
Section 29(1C)(b): “date of the emigration time, if the company is treated under section FCB 2 of the Income Tax Act 2004” is replaced by “time of emigration, if the company is treated under section FL 2 of the Income Tax Act 2007”.

Section 30 Section 30, heading and paragraphs (a), (b), and (c): “dividend with- holding payment credit” is replaced by “FDP credit” in each place where it appears.
3241 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 30—continued Section 30, words before paragraph (a): “a dividend withholding payment account company” is replaced by “an FDPA company”.

Section 30: “a dividend withholding payment credit” is replaced by “an FDP credit”.

Section 30, words before paragraph (a): “section MG 6 of the Income Tax Act 2004” is replaced by “section OC 27 of the Income Tax Act 2007”.
Section 30A Section 30A, heading and subsection: “conduit tax relief credit” is replaced by “CTR credit” in each place where it appears.

Section 30A, words before paragraph (a): “conduit tax relief com- pany” is replaced by “CTR company”.

Section 30A, words before paragraph (a): “section MI 7 of the In- come Tax Act 2004” is replaced by “section OD 20 of the Income Tax Act 2007”.
Section 30A(b) and (c)(ii): “conduit tax relief additional dividend” is replaced by “CTR additional dividend” in each place where it ap- pears.

Section 30A(b): “section LG 1 of the Income Tax Act 2004” is re- placed by “section LQ 5 of the Income Tax Act 2007”.

Section 30B Section 30B(e): “deduction of resident withholding tax” is replaced by “RWT is withheld”.

Section 30B(f): “section ME 6B of the Income Tax Act 2004” is replaced by “section OB 64 of the Income Tax Act 2007”.
Section 30B(g): “deduction of resident withholding tax” is replaced by “amount of RWT withheld”.

Section 30B(g): “section NF 8B of the Income Tax Act 2004” is replaced by “section RE 25 of the Income Tax Act 2007”.

Section 30C Section 30C(2)(b) and (c): “dividend withholding payment credit” is replaced by “FDP credit” in each place where it appears.
3242 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 31 Section 31(1)(e): “section NF 8B of the Income Tax Act 2004” is replaced by “section RE 24 of the Income Tax Act 2007”.

Section 32A Section 32A(1) and (4): “Income Tax Act 2004” is replaced by “In- come Tax Act 2007” in each place where it appears.

Section 32A(1): “speciﬁed superannuation contributions” is replaced by “employer’s superannuation contributions”.
Section 32B Section 32B, heading and subsections (1)(m) and (4): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.

Section 32B(1)(a), (c), (k), and (l): “speciﬁed superannuation con- tributions” is replaced by “employer’s superannuation contributions” in each place where it appears.
Section 32B(1)(b): replace by the following: “(b) the amount of employer’s superannuation contributions for which ESCT has been withheld at the rate speciﬁed in schedule 1, part D, clause 1 of the Income Tax Act 2007:”.

Section 32B(1)(c): “section NE 2A of the Income Tax Act 2004” is replaced by “section RD 68 of the Income Tax Act 2007”.

Section 32C Section 32C(1)(a) and (d), and (4): “Income Tax Act 2004” is re- placed by “Income Tax Act 2007” in each place where it appears.
Section 32C(1)(b): “employer contributions to superannuation sav- ings” is replaced by “employer-sourced superannuation savings”.

Section 32D Section 32D, heading and subsection (1): “qualifying unit” is re- placed by “public unit” in each place where it appears.
3243 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 32E to 32N After section 32D: insert the following: “Resident passive income “32E Applications for RWT exemption certiﬁcates “(1) A person listed in subsection (2) may apply to the Commis- sioner for an RWT exemption certiﬁcate.
“(2) The persons are— “(a) “(b) “(c) a registered bank: a building society: the Public Trust or a company that would be a member of the same wholly-owned group of companies as the Public Trust, if it were a company for the purposes of this Act: “(d) the Maori Trustee: a statutory trustee company: “(e) “(eb) a portfolio investment entity: “(f) a person whose main business is— “(i) borrowing money or accepting deposits, or re- ceiving credit or selling a credit instrument; and lending money or granting credit, or buying or discounting a credit instrument: “(ii) “(g) a person that is— “(i) a nominee company subject to practice rules made by the Council of the New Zealand Law Society under section 96 of the Lawyers and Conveyancers Act 2006 and operated by a bar- rister and solicitor or an incorporated law ﬁrm; or a broker’s nominee company to which the Secur- ities Act (Contributory Mortgage) Regulations 1988 apply: “(ii) “(h) “(i) a practitioner within the meaning of the Lawyers and Conveyancers Act 2006 or incorporated ﬁrm within the meaning of that Act in relation to the operation of their trust account which is an account maintained under sec- tion 112 of that Act: a person— 3244 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 32E to 32N—continued “(i) who has met their obligation to ﬁle a return of income under the Inland Revenue Acts within the time allowed; and “(ii) whose annual gross income for the tax year in which they last ﬁled a return of income is more than $2,000,000: a person in an accounting year who reasonably believes their annual gross income for the tax year that corres- ponds to the next accounting year will be more than $2,000,000: a person who derives in a tax year an amount that is exempt income under sections CW 38(2), CW 39(2), CW 40 to CW 52, and CW 63 of the Income Tax Act 2007 in relation to their activities in the capacity in which they derive the exempt income: a person to whom section DV 8 of the Income Tax Act 2007 applies and who would, but for that
 section, have net income of an amount less than the amount set out in the section for their most recently ended accounting year.
“(j) “(k) “(l) “(3) The person must apply in writing to the Commissioner, and the application must— “(a) “(b) state the basis of exemption under subsection (2); and include a declaration by the person or an ofﬁcer author- ised by them that they come within the basis of exemp- tion.

“(4) The person must provide further information in relation to the application as the Commissioner requires.
“Compare: 2004 No 35 s NF 9(1)–(3) “32F Calculation of annual gross income when threshold met For the purposes of section 32E(2)(i), when the person is part of a group of companies, the person’s annual gross income is determined by— “(a) including the total annual gross income in the tax year of other group companies; and 3245 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 32E to 32N—continued “(b) excluding an amount of assessable income derived by the company or another company in the same group from a transaction or series of related or connected transactions with another company in the group.
“Compare: 2004 No 35 s NF 9(8), (10) “32G Evidence of annual gross income and consequences of failure to meet threshold “(1) This section applies when a person’s application for an RWT exemption certiﬁcate is based on their meeting the require- ments in section 32E(2)(j).

“(2) The person must provide evidence to satisfy the Commissioner of their annual gross income for the accounting year.

They must provide the evidence within the 3-month period after the end of the accounting year.
“(4) “(3) For the purposes of subsection (2), the Commissioner may re- quire further evidence, and also for the purposes of section 32L.

If the person’s annual gross income for the tax year referred to in section 32E(2)(j) is less than $2,000,000, they are liable for late payment penalties in relation to an amount received or derived by them that would have been withheld under the RWT rules, had they not held an RWT exemption certiﬁcate.
Section 139B applies to the person as if— “(a) “(b) they had failed to withhold an amount of tax; and the default occurred on each day on which they received or derived a payment from which RWT would otherwise have been withheld.

“(5) In the calculation of estimated annual gross income of a com- pany that anticipates that it will be part of a group of companies for the tax year referred to in section 32E(2)(j), the estimated annual gross income of all other group companies is included.
“(6) Despite subsection (5), in the calculation of the annual gross income of a company for the purposes of this section, an amount of income derived by them or another company in the same group of companies from a transaction or series of 3246 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 32E to 32N—continued related or connected transactions with another company in the group is excluded.
“(7) Despite subsections (2) and (4), the Commissioner may pro- vide an RWT exemption certiﬁcate to, or allow it to be re- tained by, a person who does not meet the requirements of section 32E(2)(j) if the Commissioner considers that the fail- ure is solely a consequence of extraordinary circumstances that are— “(a) beyond the person’s reasonable control; and “(b) unlikely to be repeated in later accounting years.
“(8) For the purposes of subsection (6), the Commissioner may re- mit some or all of a late payment penalty if the Commissioner considers that the failure is solely a consequence of extraor- dinary circumstances that the person could not reasonably be expected to have foreseen.
“Compare: 2004 No 35 s NF 9(6), (7), (9)–(11) “32H Providing RWT exemption certiﬁcate when person meets requirements “(1) This section applies when the Commissioner has received an application for an RWT exemption certiﬁcate from a person who meets the requirements of section 32E.

“(2) The Commissioner must provide the certiﬁcate to the person, setting out the person’s tax ﬁle number.

The certiﬁcate is valid from the starting date set out in the certiﬁcate.
“(3) The Commissioner may determine that a person’s application should have an end date, and this date must be set out in the certiﬁcate.

“(4) The Commissioner may provide a replacement certiﬁcate if an original certiﬁcate is lost or destroyed.
“Compare: 2004 No 35 s NF 9(4), (5) 3247 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 32E to 32N—continued “32I Providing RWT exemption certiﬁcate to person who does not meet requirements “(1) Despite section 32H, the Commissioner may provide an RWT exemption certiﬁcate for a period to a person who does not meet the requirements in section 32E(2) if the person— “(a) will, or is likely to, have for the period, total deductions under the Income Tax Act 2007 that are not less than the total amount of assessable income of the person for the period; or “(b) would have, or would likely have, in a part of a tax year that falls in the period, total tax credits under section LB 3 of the Income Tax Act 2007 for resident passive income that are more than the income tax liability of the person for the tax year by an amount not less than $500.
“(2) Despite subsection (1), the Commissioner may not provide an RWT exemption certiﬁcate to a person unless they have ap- plied in writing as described in section 32E(3), and include in the application a set of budgeted accounts with details, for the period, of the person’s projected— “(a) “(b) “(c) “(d) total amount of assessable income: total deductions: tax credits for resident passive income: income tax liability.
“(3) For the purposes of subsection (2), the Commissioner may re- quire the person to provide further information.

“(5) “(4) A certiﬁcate provided under this section is cancelled under section 32L at the expiry date set out in the certiﬁcate.

If a person provided with a certiﬁcate under this section noti- ﬁes another person that they hold the certiﬁcate, the notiﬁca- tion must include a copy of the certiﬁcate.
“Compare: 2004 No 35 s NF 9(12)–(14) “32J RWT exemption certiﬁcates for unincorporated bodies “(1) This section applies when the Commissioner provides an RWT exemption certiﬁcate to an unincorporated body under section RE 30 of the Income Tax Act 2007.

3248 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 32E to 32N—continued “(2) The certiﬁcate must name the body as the holder.

If the body is a trustee, the certiﬁcate must name the trust as the holder.
“(3) No member of the body can be provided with an RWT exemp- tion certiﬁcate in relation to the taxable activity carried on by the body.

“(4) For the purposes of the RWT rules, a notice to the body as holder is treated as served on the body and on each member of the body.

“Compare: 2004 No 35 s NF 10(1)(a), (d), (3) “32K Failing to meet basis of exemption “(1) This section applies when a holder of an RWT exemption cer- tiﬁcate no longer meets the requirements on which their ex- emption is based.
If the holder becomes aware that they no longer meet the requirements, they must notify the Commissioner within a period of 5 days after the day on which they became aware, and they must deliver the certiﬁcate to the Commissioner.

“(2) “(3) The Commissioner may ask the holder to provide the full name and last known address of all persons to whom they have shown the certiﬁcate for the purposes of obtaining an ex- emption from withholding the amount of tax from a payment of resident passive income.
The person must respond to the Commissioner’s request within 5 days.
“Compare: 2004 No 35 s NF 11(1) “32L Cancellation of RWT exemption certiﬁcates “(1) The Commissioner may cancel a person’s RWT exemption certiﬁcate at any time, and notify any person of the fact of the cancellation, when— “(a) the Commissioner reasonably believes the person no longer meets the requirements on which their exemp- tion is based; or the person did not meet the requirements on which their exemption was based and obtained the certiﬁcate through misleading information; or “(b) 3249 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 32E to 32N—continued “(c) “(d) “(e) the person should not have been provided with the cer- tiﬁcate; or the person’s exemption was based on a ground set out in section 32E(2)(i) or (j), and the evidence provided under section 32G— “(i) “(ii) “(iii) is materially incorrect or misleading; or the person is liable for income tax that remains unpaid by the due date for payment.
shows the person did not meet the threshold; or is unsatisfactory; or “(2) If the Commissioner cancels a certiﬁcate under subsection (1), the Commissioner must notify the person who must deliver the certiﬁcate to the Commissioner within a period of 5 days after the date of notiﬁcation.

The person must also comply with a request under section 32K(3) if asked by the Commissioner.
“(3) Despite subsection (1), if the Commissioner considers that a person referred to in subsection (1)(a) to (d) is a person to whom section 32G applies and who has a further basis of ex- emption apart from that set out in the certiﬁcate, the Commis- sioner must not cancel the certiﬁcate except to provide a sub- stitute certiﬁcate that has immediate effect.
“(4) A person who receives a notice under subsection (2) must, within a period of 5 days after the date of receipt, notify all persons to whom they have shown the certiﬁcate for the pur- poses of obtaining an exemption under the RWT rules and from whom they expect to receive further payments of resi- dent passive income of the cancellation.
“(5) The Commissioner must publish in the Gazette— “(a) on or before 30 June in each tax year— “(i) a list of all certiﬁcates cancelled in the previous tax year, other than a certiﬁcate held by a person before cancellation that was later reissued to the person; and a list of all certiﬁcates provided during the previ- ous tax year to a person who had previously held a certiﬁcate, other than a certiﬁcate provided to a “(ii) 3250 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 32E to 32N—continued person who previously held a certiﬁcate that was cancelled; and “(b) in April, July, October, and January (the month of pub- lication)— “(i) “(ii) a list of all certiﬁcates cancelled during the 3-month period immediately before the month of publication, other than a certiﬁcate held by a person before cancellation that was later reissued to the person in the 3-month period; and a list of all certiﬁcates provided during the 3-month period immediately before the month of publication to a person who had previously held a certiﬁcate, other than a certiﬁcate provided to a person who previously in the 3-month period held a certiﬁcate that was cancelled.
“(6) The Commissioner may publish a list referred to in subsection (5) by electronic means at any time after the publication re- ferred to in that subsection.

“(7) A person who is required to deliver an RWT exemption certiﬁ- cate to the Commissioner must deliver all original certiﬁcates provided to them by the Commissioner.

“(8) An RWT exemption certiﬁcate ceases to be valid on the 5th working day after the date of publication in the Gazette re- ferred to in subsection (5).
For a person who is notiﬁed of a cancellation by the Commissioner or by the previous holder of a certiﬁcate, a certiﬁcate ceases to be valid after a period of 5 working days from the date of notiﬁcation.

“Compare: 2004 No 35 s NF 11(2)–(9) “Non-resident passive income “32M Persons with approved issuer status “(1) A person who borrows, or has borrowed, or will borrow money, may apply to the Commissioner to have approved issuer status for the purposes of the NRWT rules.
3251 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 32E to 32N—continued “(2) On making an application under subsection (1), the person is an approved issuer from the date of the application unless the Commissioner— “(a) considers that they have been responsible for serious default or neglect in complying with their obligations under the Inland Revenue Acts in the 2-year period lead- ing up to the date of application; and “(b) notiﬁes the person within 20 working days after the date of receiving the application that the application is de- clined.
“(3) The Commissioner may revoke a person’s approved issuer sta- tus at a particular time if— “(a) the Commissioner considers that the person has been responsible for serious default or neglect in complying with their obligations under the Inland Revenue Acts in the 2-year period leading up to that time; or the person asks for revocation of the status.

“(4) The Commissioner must notify the person of a revocation “(b) under subsection (3).
“(5) Despite subsection (3), the person continues to have approved issuer status for the purposes of the NRWT rules and Part 6B of the Stamp and Cheque Duties Act 1971 in relation to a pay- ment of interest made after the date of revocation for money lent to the person under a registered security while the person was an approved issuer and before the date of the revocation.
“Compare: 2004 No 35 ss NG 5–NG 7 “Foreign dividends “32N Information requirements when payments for foreign dividends reduced “(1) This section applies when a company pays FDP for a foreign dividend, and the amount is reduced under section RG 5(2) of the Income Tax Act 2007 by an amount of foreign withholding tax paid in relation to the dividend.
3252 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 32E to 32N—continued “(2) Before the reduction is made, the company must provide the Commissioner with all the information necessary to determine the amount of the foreign withholding tax.

“(4) “(3) The company must provide the information within the time al- lowed by the Commissioner in a case or class of cases, having regard to the period set out in section 78B.
If the company does not provide the information required under this section, the Commissioner may recover an amount equal to the amount of the foreign withholding tax as if it were income tax payable by the company.

“Compare: 2004 No 35 ss NH 2(4), NH 3(6)”.

Section 33 Section 33(1B): “section CW 34 or CW 35 of the Income Tax Act 2004” is replaced by “section CW 41 or CW 42 of the Income Tax Act 2007”.
Section 33: add the following: “(4) The nominated company for a consolidated group is treated as a taxpayer for the purposes of this section.
A company that is a member of a consolidated group in a tax year must not provide a separate return for a tax year, but this restriction applies only to a tax year, or a part of a tax year, in which the company is part of the group.” Section 33A Section 33A(1)(b)(iv): replace by the following: “(iv) interest or a dividend that is resident passive in- come to which section RE 3(1)(c) of the Income Tax Act 2007 applies (other than interest for which an RWT withholding certiﬁcate did not have to be prepared under section 25(7)), from which RWT has been withheld at a rate other than that speciﬁed in— “(A) schedule 1, part D, table 1, row 3 of the In- come Tax Act 2007 if that person’s annual 3253 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 33A—continued “(B) gross income is more than $38,000 but not more than $60,000; or schedule 1, part D, table 1, row 4 or 5 of the Income Tax Act 2007 if that person’s annual gross income is more than $60,000; and”.
Section 33A(1)(b)(v)(A): “schedule 19, clause 8(b) of the Income Tax Act 2004” is replaced by “schedule 2, part B, table 1, row 2 of the Income Tax Act 2007”.

Section 33A(1)(b)(v)(B): “schedule 19, clause 8(c) of the Income Tax Act 2004” is replaced by “schedule 2, part B, table 1, row 3 of the Income Tax Act 2007”.

Section 33A(1)(b)(vi)(A): “schedule 19, clause 5A of the Income Tax Act 2004” is replaced by “schedule 2, part A, clause 5 of the Income Tax Act 2007”.
Section 33A(1)(b)(vi)(B): “schedule 19, clause 5B of the Income Tax Act 2004” is replaced by “schedule 2, part A, clause 6 of the Income Tax Act 2007”.

Section 33A(1)(b)(x)(B): replace by the following: “(B) was not resident passive income to which section RE 3(1)(c) of the Income Tax Act 2007 applies; and”.
Section 33A(1)(c): replace by the following: “(c) does not receive income from employment from which an amount of tax is withheld or deducted and the amount is determined in whole or in part by a special tax code certiﬁcate issued under section 24F; and”.

Section 33A(1)(d) and (e): “family certiﬁcate of entitlement” is re- placed by “family notice of entitlement” in each place where it ap- pears.
Section 33A(1)(f): “department for the time being responsible for the administration of the Social Security Act 1964 a subpart KD credit under section KD 2 of the Income Tax Act 2004 for which the amount of family credit abatement under that section is greater than nil” is replaced by “administering department a family assistance credit for 3254 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 33A—continued which the amount of family credit abatement under section MD 13 of the Income Tax Act 2007 is greater than zero”.
Section 33A(2)(cb) to (m): replace by the following: “(d) “(e) received total income of more than $200 that included— a schedular payment, not being an amount or “(i) proportion of a schedular payment for which the Commissioner has made a determination under section RD 8(3) of the Income Tax Act 2007: “(ii) beneﬁciary income; or has a tax loss or tax loss component, other than a tax loss component under section LE 2 of the Income Tax Act 2007; or has a loss balance; or “(f) “(g) has carried forward to the income year a tax credit under section LE 3 of the Income Tax Act 2007; or “(h) held an RWT exemption certiﬁcate under section 32E at any time in the tax year; or”.
Section 36 Section 36(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 36A Section 36A, heading and subsection (2): “remittance certiﬁcate” is replaced by “PAYE payment form” in each place where it appears.

Section 36BB Section 36BB, heading: “under subpart MBA of the Income Tax Act 2004” is replaced by “for tax pooling intermediaries”.
Section 36BB: “subpart MBA of the Income Tax Act 2004” is re- placed by “sections RP 17 to RP 21 of the Income Tax Act 2007, and sections 15N to 15S”.

Section 36BC Section 36BC, heading and subsection: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
3255 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 39 Section 39: add the following: “(5) For the tax year corresponding to the income year or years in which the change of balance date occurs, the basic tax rate for the purposes of the Income Tax Act 2007 and this Act is the rate that would apply if the person’s taxable income for the tax year were calculated using the formula— 365 income year days × taxable income.
“(6) In the formula,— “(a) income year days is the total days in the income year or years that correspond to the tax year: taxable income is the person’s taxable income for the tax year.” “(b) Section 39B Section 39B(2)(b): “sections MB 19 to MB 23, as relevant, and schedule 13, part B of the Income Tax Act 2004” is replaced by “sec- tions RC 20 to RC 25, as relevant, and schedule 3, part B of the In- come Tax Act 2007”.
Section 39B(4)(b): “sections MB 20 to MB 23, as relevant, and schedule 13, part B of the Income Tax Act 2004” is replaced by “sec- tions RC 21 to RC 25, as relevant, and schedule 3, part B of the In- come Tax Act 2007”.

Section 41 Section 41, heading, and subsections (3)(b) and (4)(a): “subpart KD credit” is replaced by “family assistance credit” in each place where it appears.
Section 41(1) and (3)(a): “subpart KD of the Income Tax Act 2004” is replaced by “subparts MA to MF and MZ of the Income Tax Act 2007” in each place where it appears.

Section 41(3)(a): “family certiﬁcate of entitlement” is replaced by “family notice of entitlement”.
After section 41(5): insert the following: “(6) A person who is eligible for a tax credit under subparts MA to MF and MZ of the Income Tax Act 2007 in an income year, or 3256 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 41—continued would be eligible if their spouse, civil union partner, or de facto partner were not a transitional resident, and who would other- wise be a transitional resident in an income year may apply not to be a transitional resident under section HR 8(4) of that Act.
“(7) A notice of election under section HR 8(4) must be— in a form acceptable to the Commissioner; and “(a) “(b) be received by the Commissioner on or before the latest of the following: “(i) “(ii) the date by which section 37 would require the person to provide a return of income for the 2006–07 tax year, if required: the date by which section 37 would require the person to provide a return of income for the tax year corresponding to the ﬁrst income year af- fected by the election, if required: “(iii) the date allowed by the Commissioner on appli- cation.
“(8) An application under subsection (7)(b)(iii) for an extension of time to make an election is treated as if it were an application under section 37 in relation to a return of income for the later of the tax years referred to in subsection (7)(b)(i) and (ii).” Section 41A Section 41A: replace by the following: “41A Returns by persons with tax credits for housekeeping payments and charitable or other public beneﬁt gifts “(1) A person who has a tax credit under section LC 7 or subpart LD of the Income Tax Act 2007 may apply to the Commissioner for 1 or more refunds.
“(2) The total amount refunded, including a refund made on an application under subsection (7), must be no more than the annual amount of the tax credits.

“(3) The sum of the housekeeping payments under section LC 7 of that Act and charitable or other public beneﬁt gifts under subpart LD of that Act made by a person must be no more than their taxable income in the tax year in which the payment or gift, or both, is made.
3257 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 41A—continued “(4) If subsection (3) applies, the Commissioner must reduce, in equal portions, the total amount of housekeeping payments and charitable or other public beneﬁt gifts so that the total is no more than the person’s taxable income in the tax year in which the payment or gift, or both, is made.
“(5) An application under subsection (1) must be made in the man- ner required by the Commissioner, be signed by the person, and be accompanied by any information the Commissioner re- quires, including— “(a) the amount of a housekeeping payment under section LC 7 of that Act; and the amount of a charitable or other public beneﬁt gift to which subpart LD of that Act applies.
“(b) “(6) A taxpayer with a standard balance date or an early balance date may apply for a refund for a tax year after 1 April that follows the end of the taxpayer’s income year.

A taxpayer with a late balance date may apply for a refund for a tax year on or after the ﬁrst day of the taxpayer’s next accounting year.

“(7) Despite subsection (6), the Commissioner may, in special cir- cumstances, accept an application for a refund before the end of the tax year to which the application relates.
“(8) For the purpose of subsection (7), special circumstances in- clude— “(a) “(b) the person leaving New Zealand, permanently or for a signiﬁcant length of time: a trustee of a deceased person’s estate wishing to wind up the estate.

“(9) Despite subsection (1), the Commissioner must not refund the amount of a tax credit unless the requirements of subsections (2) and (3) are met.
“(10) When the Commissioner has considered an application, the Commissioner must notify the person of the amount of the tax credit under section LC 7 or subpart LD of that Act and of the amount of refund allowed.
“(11) A tax credit may not be refunded to an absentee, a company, a public authority, a Maori authority, an unincorporated body, or 3258 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 41A—continued a trustee liable for income tax under sections HC 16, HC 32, or HZ 2 of that Act.

“(12) A refund under subsection (1) must be paid as if it were tax paid in excess.
“(13) A refund under subsection (1), to the extent to which it is more than the correct amount of refund, is recoverable as an excess tax credit under section 142D.

“(14) Part 7 does not apply to a refund or an excess refund made under this section.

“(15) Part 9 applies to applications made under this section.” Section 43A Section 43A(2)(d)(iii) and (6)(b)(i): “dividend withholding pay- ment” is replaced by “FDP” in each place where it appears.
Section 43A(4) and (5): “imputation year” is replaced by “tax year” in each place where it appears.

Section 43A(6)(b)(i): “net loss available” is replaced by “loss bal- ance”.

Section 43A(6)(b)(iii): “net loss” is replaced by “tax loss or loss bal- ance”.

Section 43A(7): “imputation return” is replaced by “annual ICA re- turn”.

Section 44A Section 44A, heading, and subsections (1)(a) to (d) and (2): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 44B Section 44B(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.
Section 44C Section 44C(1): replace by the following: “(1) The question whether trees are ornamental or incidental arises under the following provisions of the Income Tax Act 2007: 3259 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 44C—continued “(a) “(b) “(c) “(d) section CB 25: section EB 24: sections FB 6 and FB 7: sections GC 1 and GC 2.” Section 44C(3): “section OB 1 of the Income Tax Act 2004 and under schedule 7, part A, item 8 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007 and under schedule 20, part A, item 8 of that Act”.
New section 44D After section 44C: insert the following: “44D Natural product dealer certiﬁcate “(1) For the purposes of schedule 4, part H of the Income Tax Act 2007, the Commissioner may issue a natural product dealer certiﬁcate to a person who applies in writing.
“(2) The certiﬁcate may be issued for any period of time, and is revoked when a notice ordering revocation is received by the Commissioner, if the person revokes the certiﬁcate, or by the person, if the Commissioner revokes the certiﬁcate.” Section 46 Section 46(5)(f): “paid under subpart KD of the Income Tax Act 2004” is replaced by “paid under subparts MA to MF and MZ of the Income Tax Act 2007”.
Section 46(7): “section OB 2(2) of the Income Tax Act 2004, be a source deduction payment” is replaced by “section RD 3(2) to (4) of the Income Tax Act 2007, be a PAYE income payment”.

Section 46A Section 46A(5), deﬁnition of child tax credit: “section OB 1 of the Income Tax Act 2004” is replaced by “section YA 1 of the Income Tax Act 2007”.
Section 46A(5), deﬁnition of weekly compensation: “paragraph (b)(ix) or (x) of the deﬁnition of salary or wages in section OB 1 of the Income Tax Act 2004” is replaced by “section RD 5(6)(b) and (7) of the Income Tax Act 2007”.
3260 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 46B to 46E After section 46A: insert the following: “Fringe beneﬁts “46B FBT returns for quarters “(1) This section applies to an employer who pays their FBT li- ability under the single rate option or the alternate rate option.

The employer chooses the relevant option by providing a re- turn stipulating the selected rate.
“(2) For each quarter of a tax year, the employer must provide a return that— “(a) sets out the details of the fringe beneﬁts received by each of their employees in the quarter; and includes a calculation of the amount of FBT payable on the taxable value of the fringe beneﬁts in the quarter.
“(b) “(3) The returns must be provided, and the employer is liable to pay the amount of FBT, by the following dates: “(a) for a return for each of the ﬁrst 3 quarters of a tax year, 20 days after the end of the quarter: for a return for the ﬁnal quarter of a tax year, 31 May after the end of the quarter, unless subsection (4)(a) ap- plies.
“(b) “(4) “(5) “(6) If an employer chooses to pay FBT under sections RD 50 and RD 53 of the Income Tax Act 2007, and the result of the cal- culation is— “(a) a negative number, the employer is entitled to a refund of the overpayment: a positive number, the employer must pay the differ- ence.

“(b) If no fringe beneﬁt has been provided during a quarter, the em- ployer must still provide a return under subsection (3).

How- ever, the Commissioner may relieve an employer of this obli- gation.
If an employer stops employing staff in a tax year as described in section RD 63 of that Act, they must provide a return within 2 months after the end of the quarter in which the employment ceased.

For this purpose, subsections (3) and (4), and para- 3261 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 46B to 46E—continued graph (d) of the deﬁnition of date interest starts apply to the employer.
“Compare: 2004 No 35 ss ND 2(3), ND 9(2), (3), ND 10(2)–(5), ND 11, ND 12 “46C FBT returns for years “(1) This section applies to an employer who pays their FBT li- ability under the close company option or the small business option.

The employer chooses the relevant option by notifying the Commissioner.
“(2) The employer must provide a return that— “(a) “(b) sets out the details of the fringe beneﬁts received by each of their employees in the tax year or income year, as applicable; and includes a calculation of the amount of FBT payable on the taxable value of the fringe beneﬁts in the tax year or income year, as applicable.

“(3) For an employer who chooses to pay under the close com- pany option, the return must be provided no later than the em- ployer’s terminal tax date for the relevant income year.
The employer is liable to pay the amount calculated by the terminal tax date.

“(4) For an employer who chooses to pay under the small business option, the return must be provided no later than 31 May after the end of the relevant tax year.

The employer is liable to pay the amount calculated by 31 May.
“Compare: 2004 No 35 ss ND 13(5), (6), ND 14(5), (6) “46D FBT returns: changes in payment periods “(1) This section applies when an employer chooses to pay income tax on an income year basis under the close company option, and the ﬁrst day of the relevant income year is not the same day as the ﬁrst day of a quarter.
“(2) The employer must provide a return and pay FBT under sec- tion 46B, treating the period between the ﬁrst day of the quarter 3262 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 46B to 46E—continued in which the income year starts and the ﬁrst day of the income year as if it were a quarter.
“Compare: 2004 No 35 s ND 15(7), (8) “46E FBT returns: information for calculations “(1) This section applies for the purposes of sections RD 58(2), RD 60(4), and RD 61(4) of the Income Tax Act 2007 when an employer asks the Commissioner to replace the FBT liability determined under a set rate with a calculated amount.

“(2) The employer must provide the information within 2 months after notifying the Commissioner that an assessment for the ﬁnal quarter or year has been made.
“Compare: 2004 No 35 s ND 1(6)”.

Section 47 Section 47: replace by the following: “47 ESCT statements provided by employers “(1) This section applies when an employer or PAYE intermediary withholds in a period an amount of ESCT from an employer’s superannuation contribution.
“(2) The employer or PAYE intermediary must deliver to the Com- missioner a PAYE payment form showing the amount of em- ployer’s superannuation contribution, the amount of ESCT re- lating to the contribution, and any other particulars required by the Commissioner as follows: “(a) when the employer or PAYE intermediary has withheld the ESCT during the ﬁrst payment period, no later than the 20th of the month during which the ESCT was with- held: “(b) when the employer or PAYE intermediary has withheld the ESCT during the second payment period, no later than the 5th of the month following the month in which the ESCT was withheld: despite paragraphs (a) and (b), if the employer or PAYE intermediary is required to pay an amount of tax to the Commissioner under section RD 4(1)(a) of the Income “(c) 3263 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 47—continued Tax Act 2007, no later than the 20th of the following month in which the amount was withheld.” Section 48 Section 48(1): “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 49 Section 49, heading and subsection (1): replace by the following: “49 NRWT withholding certiﬁcates and annual reconciliations “(1) Subsection (1B) applies when a person in a year— “(a) withholds, or is required by the NRWT rules to with- hold, NRWT for non-resident passive income paid to or derived by any other person; or “(b) pays to, or is required to pay to, the Commissioner under section RF 10 of the Income Tax Act 2007 NRWT for non-resident passive income that is a dividend.
“(1B) The person must prepare and provide to the Commissioner, no later than 31 May in the following year, in the form approved by the Commissioner,— “(a) an NRWT withholding certiﬁcate for all NRWT with- held or paid in relation to each recipient during the year; and an annual reconciliation statement for all NRWT with- held or paid during the year.” “(b) Section 49(2): “non-resident withholding tax deduction certiﬁcate” is replaced by “NRWT withholding certiﬁcate”.
Section 49(2)(a): “making the deduction or payment” is replaced by “withholding or paying the NRWT”.
Section 49(2)(d) to (g): replace by the following: “(d) “(e) “(f) the year in which the NRWT to which the certiﬁcate relates was withheld: the type of non-resident passive income to which the certiﬁcate relates: the amount of NRWT withheld and the amount of non- resident passive income to which it relates: 3264 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 49—continued “(g) the amount of NRWT paid:”.
Section 49(4)(a): “make any deductions on account of non-resident withholding tax” is replaced by “withhold NRWT”.

Section 49(4), words after the paragraphs, and subsection (4B)(a): “non-resident withholding tax deduction certiﬁcates” is replaced by “NRWT withholding certiﬁcates” in each place where it appears.

Section 49(4B): “section FCB 2 of the Income Tax Act 2004” is re- placed by “section FL 2(1) of the Income Tax Act 2007”.
Section 49(4B) and (4C)(c): “date of the emigration time” is replaced by “time of emigration” in each place where it appears.

Section 49(4C): “tax deduction certiﬁcates” is replaced by “with- holding certiﬁcates”.

Section 50 Section 50, heading and subsection: “resident withholding tax” is replaced by “RWT” in each place where it appears.
Section 51 Section 51, heading and subsection (1): replace by the following: “51 RWT withholding reconciliation statements “(1) Subsection (1B) applies when a person withholds (or is re- quired by the RWT rules to withhold, but fails to do so) RWT for resident passive income paid to or derived by another per- son that is— “(a) “(b) “(c) interest; or a dividend treated as interest; or a dividend to which section RE 9(2) of the Income Tax Act 2007 applies.
“(1B) The person must provide to the Commissioner, in the form prescribed by the Commissioner, the information that the Commissioner may require in relation to the RWT.” Section 51(2), words before paragraph (a): “a deduction of resident withholding tax” is replaced by “RWT withheld”.
3265 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 51—continued Section 51(2)(d) to (g): replace by the following: “(e) “(d) whether the resident passive income is interest, a divi- dend treated as interest, or a dividend to which section RE 9(2) of the Income Tax Act 2007 applies; and the date on which the RWT was withheld, or if more the year in which the than 1 amount is withheld, amounts were withheld; and the amount of resident passive income and the amount of RWT withheld; and the tax rate for RWT that applied to the resident passive income; and”.
“(g) “(f) Section 51(2A): “If the person has paid interest or speciﬁed dividends to another person (the recipient) and has not deducted resident with- holding tax because the recipient holds a valid certiﬁcate of exemp- tion” is replaced by “If the person has paid interest, a dividend treated as interest, or a dividend to which section RE 9(2) of the Income Tax Act 2007 applies to another person (the recipient) and has not with- held RWT because the person holds an RWT exemption certiﬁcate”.
Section 51(2A)(b) and (c): replace by the following: “(b) “(c) the total interest, dividends treated as interest, or divi- dends to which section RE 9(2) of the Income Tax Act 2007 applies that are paid to the recipient; and the recipient’s tax ﬁle number, unless the recipient is, at the time of payment, a person to whom any of section 32E(2)(a) to (c) applies; and”.

Section 51(4)(a) and (5): “a valid certiﬁcate of exemption” is re- placed by “an RWT exemption certiﬁcate” in each place where it appears.
Section 51(4)(a): “deduct resident withholding tax” is replaced by “withhold RWT”.

Section 51(5): “make resident withholding tax deductions” is re- placed by “withhold RWT”.

Section 51(5B): “section FCB 2 of the Income Tax Act 2004” is re- placed by “section FL 2(1) of the Income Tax Act 2007”.

Section 51(5B): “emigration time” is replaced by “time of emigra- tion”.
3266 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 51—continued Section 51(5C)(c): “date of the emigration time” is replaced by “time of emigration”.

Section 51(7): “is resident withholding income under section NF 2(1A)(b) of the Income Tax Act 2004” is replaced by “to which section RE 3(c) of the Income Tax Act 2007 applies”.
Section 52 Section 52, heading, words before paragraph (a), and paragraphs (a) to (c): replace by the following: “52 Disclosure of interest payments when no requirement to withhold RWT A person who in a year pays an amount of resident passive income that is interest,— “(a) for which RWT is required to be withheld because— “(i) the payment was not made by the person in the course of or furtherance of a taxable activity; or section RE 10 of the Income Tax Act 2007 ap- plies; and “(ii) “(b) “(c) that is allowed as a deduction for the purposes of the Income Tax Act 2007; and that is paid to a person other than a person who holds an RWT exemption certiﬁcate,—”.
Section 52(e): “resident withholding income” is replaced by “resi- dent passive income”.

Section 53 Section 53(1)(a) and (c): “a certiﬁcate of exemption” is replaced by “an RWT exemption certiﬁcate” in each place where it appears.

Section 53(1)(b)(iv): “a valid certiﬁcate of exemption” is replaced by “an RWT exemption certiﬁcate”.

Section 53(1)(c): “resident withholding tax” is replaced by “RWT”.
Section 53(1)(d): “no deduction of resident withholding tax has been made under section NF 2(8) of the Income Tax Act 2004” is replaced by “RWT has not been withheld under section RE 6 of the Income Tax Act 2007”.

3267 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 54 Section 54, heading: “resident withholding income” is replaced by “resident passive income”.
Section 54(1): “to make a deduction of resident withholding tax in respect of any amount of resident withholding income paid to or de- rived (in the case of a deduction of resident withholding tax made in accordance with section NF 3 of the Income Tax Act 2004)” is replaced by “to withhold RWT for an amount of resident passive in- come paid to or derived (as applicable)”.
Section 54(1)(b): replace by the following: “(b) the total resident passive income of the recipient in the tax year for which RWT was required to be withheld by the payer:”.

Section 56 Section 56(a) and (b): “special account” is replaced by “special home ownership account operated by a person under Part 2 of the Home Ownership Savings Act 1974” in each place where it appears.
Section 59 Section 59(2): “section HH 1(1) of the Income Tax Act 2004” is replaced by “sections HC 27(4) and YB 21 of the Income Tax Act 2007”.

Section 59(4) and (5): “HH 7 of the Income Tax Act 2004” is replaced by “93B” in each place where it appears.

Section 61 Section 61(1)(b) and proviso: “Income Tax Act 2004” is replaced by “Income Tax Act 2007” in each place where it appears.
Section 64 Section 64: “a determination in respect of a notional distribution under section ME 35(1)(b) of the Income Tax Act 2004” is replaced by “an election in relation to a notional distribution under section OB 79 of the Income Tax Act 2007”.

Section 64(b): “section CD 24(2) of the Income Tax Act 2004”is replaced by “section CD 33(2) of the Income Tax Act 2007”.
3268 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 65 Section 65: “section CX 36 or DT 13 of the Income Tax Act 2004” is replaced by “section CX 42 or DT 13 of the Income Tax Act 2007”.

Section 66 Section 66, heading: “policyholder credit account persons” is re- placed by “PCA persons”.

Section 66(1), (4), and (5): “policyholder credit account person” is replaced by “PCA person” in each place where it appears.
Section 66(1), (4), and (5): “policyholder credit account return” is replaced by “PCA return” in each place where it appears.

Section 66(2)(b): “section ME 23 of the Income Tax Act 2004” is replaced by “sections OJ 12 to OJ 18 of the Income Tax Act 2007”.

Section 67 Section 67, heading and subsection (1): “imputation credit account company” is replaced by “ICA company” in each place where it ap- pears.
Section 67(1)(c): “section CD 6 or CD 7 of the Income Tax Act 2004” is replaced by “section CD 7 or CD 8 of the Income Tax Act 2007”.

Section 67(1)(eb): “Australian imputation credit account company” is replaced by “Australian ICA company”.

Section 67(2): “imputation year corresponding with that income year” is replaced by “tax year”.

Section 68 Section 68, heading: “dividend withholding payment credit” is re- placed by “FDP credit”.
Section 68, words before paragraph (a): “a dividend withholding payment account company” is replaced by “an FDPA company”.

Section 68, words before paragraph (a): “a dividend withholding payment credit” is replaced by “an FDP credit”.

Section 68(a): “dividend withholding payment credits” is replaced by “FDP credits”.

Section 68(b): “dividend withholding payment ratio” is replaced by “FDP ratio”.
3269 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 68—continued Section 68(c): “combined imputation and dividend withholding pay- ment ratio” is replaced by “combined imputation and FDP ratio”.
Section 68A Section 68A: replace by the following: “68A Statement when CTR credit attached to dividend If a CTR company attaches a CTR credit to a dividend, the company must include the following information in the com- pany dividend statement required by section 67: “(a) the CTR additional dividend paid under section LQ 5 of the Income Tax Act 2007: the FDP ratio, calculated as if the credit were an FDP credit: the combined imputation and FDP ratio, calculated as if the credit were an FDP credit, if an imputation credit has been attached to the dividend.” “(b) “(c) Section 68B Section 68B(1)(d): “base ratio” is replaced by “Maori authority credit ratio”.
Section 69 Section 69: replace by the following: “69 Annual ICA return “(1) An imputation credit account (ICA) company must provide to the Commissioner an annual ICA return in the prescribed form for a tax year, showing— “(a) the opening balance and closing balance of the imput- ation credit account for the tax year: the amount and source of all credits and debits that have arisen during the tax year as described in sections OA 5(2) and OA 6(2) of the Income Tax Act 2007: the amount of any further income tax payable for the tax year under sections OB 65 to OB 67 of that Act: the amount of any imputation penalty tax payable for the tax year: “(b) “(c) “(d) 3270 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 69—continued “(e) when the company is a branch equivalent tax account (BETA) company,— “(i) “(ii) the opening balance and closing balance of the company’s branch equivalent tax account for the tax year: the amount and source of all credits and debits to the company’s branch equivalent tax account for the tax year that have arisen as described in sections OA 5(5)(a) and OA 6(5)(a) of that Act: “(f) when the company is a conduit tax relief (CTR) com- pany for the tax year,— “(i) the opening and closing balances of the com- pany’s CTR account for the tax year: the amount and source of all credits and debits that have arisen in the company’s CTR account as described in sections OA 5(4) and OA 6(4) of that Act: “(g) when the company is a policyholder credit account (PCA) company,— “(i) the opening balance and closing balance of the company’s policyholder credit account for the tax year: the amount and source of all credits and debits to the company’s policyholder credit account for the tax year that have arisen as described in sec- tions OA 5(7)(a) and OA 6(7)(a) of that Act: “(h) when the company is a public unit trust or a group in- vestment fund that derives category A income— “(i) the opening and closing balances of the trust’s or fund’s ASC account for the tax year: the amount and source of
 all credits and debits that have arisen in the trust’s or fund’s ASC account as described in sections OA 5(6) and OA 6(6) of that Act: “(ii) “(i) further information as may be prescribed or required by the Commissioner.
3271 “(ii) “(ii) Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 69—continued “(2) The annual ICA return required for the tax year by subsection (1) must be provided to the Commissioner no later than— “(a) the last day of the July that follows the end of the tax year, if the ICA company is an Australian ICA company that is not required to ﬁle a return of income for the tax year: if paragraph (a) does not apply, the last day on which the ICA company is permitted under section 37 to ﬁle a return of income for the tax year.” “(b) Section 69B Section 69B(1): “the imputation year that corresponds with” is omit- ted.
Section 69B(2)(a) to (d): “imputation year” is replaced by “tax year” in each place where it appears.

Section 69B(2)(b): “sections MK 4 and MK 5 of the Income Tax Act 2004” is replaced by “sections OK 2 to OK 18 of the Income Tax Act 2007”.

Section 69B(2)(c): “section MK 8 of the Income Tax Act 2004” is replaced by “sections OK 21 and OK 22 of that Act”.

Section 70 Section 70, heading and subsections (1), (3), and (4): “imputation return” is replaced by “annual ICA return” in each place where it appears.
Section 70(1), (2), (2B), and (3): “imputation credit account com- pany” is replaced by “ICA company” in each place where it appears.

Section 70(2B) and (4): “an imputation year” is replaced by “a tax year” in each place where it appears.

Section 70(2), (2B), and (3): “imputation year” is replaced by “tax year” in each place where it appears.

Section 70(2B): “section ME 5(2)(eb) or ME 12(2)(da) of the Income Tax Act 2004” is replaced by “section OB 34, OB 35, OP 32, or OP 33 of the Income Tax Act 2007”.
3272 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 70—continued Section 70(2B)(b): “section MD 2 of the Income Tax Act 2004” is replaced by “sections RM 13 to RM 17, RM 32, and RZ 6 of the Income Tax Act 2007”.

Section 70B Section 70B(2), (3) and (4): “an imputation year” is replaced by “a tax year” in each place where it appears.

Section 70B(2) and (3): “the imputation year” is replaced by “the tax year”.
Section 71 Section 71: replace by the following: “71 Annual FDPA return A foreign dividend payment (FDPA) company must, not later than the time allowed under section 37 for providing a return of income for an income year, provide to the Commissioner an annual FDPA return in the prescribed form for the tax year corresponding to the income year, showing— “(a) the opening and closing balances of the FDP account for the tax year: the amount and source of all credits and debits that have arisen during the tax year as described in sections OA 5(3) and OA 6(3) of the Income Tax Act 2007: the amount of FDP payable for the tax year under sec- tions OC 30 to OC 32 of that Act: “(d) the amount of FDP penalty tax payable for the tax year: “(e) whether the company has chosen under section OC 4(1) “(b) “(c) “(f) “(g) of that Act to stop being an FDPA company: the amount and source of every foreign dividend paid to the company during the year, and the amount of FDP paid for the foreign dividend: further information as may be prescribed or required by the Commissioner.
3273 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 71—continued “Foreign dividends “71B Return requirements for refunds: foreign dividends “(1) This section applies for the purposes of section RM 21(3) of the Income Tax Act 2007 when a loss balance is used to reduce a company’s net income for an income year in which a foreign dividend is paid.
“(2) The company described in section RM 21(1) of that Act must— “(a) ﬁle a return of income under section 33 for the income year in which the tax loss arose; and “(b) ﬁle a return of income under section 33 for the current income year; and apply to the Commissioner for the refund of the FDP.
“(c) “(3) The company described as group company B in section RM 21(2) of that Act must— “(a) ﬁle a return of income under section 33 for the income year in which the tax loss arose; and “(b) notify the Commissioner that payment of some or all of the FDP is satisﬁed by reducing the tax loss.

“Compare: 2004 No 35 s NH 4(5)(b), (c)”.

Section 72 Section 72, heading: “Dividend withholding payment account” is replaced by “Annual FDPA”.
Section 72(1) and (2): “a dividend withholding payment account re- turn” is replaced by “an FDPA return” in each place where it appears.

Section 72(1) and (2): “a dividend withholding payment account company” is replaced by “an FDPA company” in each place where it appears.

Section 72(2): “imputation year” is replaced by “tax year” in each place where it appears.

Section 72(3): “an imputation year” is replaced by “a tax year”.
Section 73 Section 73, heading: “Dividend withholding payment account” is replaced by “Annual FDPA”.

3274 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 Section 73—continued Section 73(b): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 74 Section 74, heading and subsection (2): “imputation return” is re- placed by “ICA return” in each place where it appears.

Section 74(1)(b): “imputation credit account company” is replaced by “ICA company”.
Section 74(1)(c): “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 74(2): “an imputation year if the group has no liability to make a payment under section ME 14(3) of the Income Tax Act 2004 for the imputation year” is replaced by “a tax year if the group has no liability to make a payment under section OP 6 of the Income Tax Act 2007 for the tax year”.

Section 77 Section 77, heading and subsection: “imputation return” is replaced by “ICA return” in each place where it appears.
Section 77: “section MF 1(1) of the Income Tax Act 2004 after the end of the imputation year” is replaced by “section OE 3 of the In- come Tax Act 2007 after the end of the tax year”.

Section 77, words after the paragraphs: “imputation year” are re- placed by “tax year”.

Section 78 Section 78, heading: “branch equivalent tax account persons” is replaced by “BETA persons”.

Section 78(1), (4), and (5): “branch equivalent tax account” is re- placed by “BETA” in each place where it appears.
Section 78(2)(b): “in accordance with section MF 13 of the Income Tax Act 2004” is replaced by “as described in sections OA 5(5) and OA 6(5) of the Income Tax Act 2007”.
3275 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New sections 78B to 78F After section 78: insert the following: “78B Applications for tax credits “(1) A taxpayer who has a tax credit under section LJ 2 or LK 1 of the Income Tax Act 2007 must apply for the credit within 4 years after the end of the tax year in which the taxpayer would have the credit in the absence of this section.

The Commis- sioner may extend this 4-year period by another period of up to 2 years.
“(2) The taxpayer must provide with the application under subsec- tion (1) information that is necessary to determine the amount of the credit.

“Compare: 2004 No 35 s LC 13(1) “78C Disclosure when changes occur A taxpayer must provide to the Commissioner, as soon as pos- sible, all relevant information if — “(a) an amount referred to in section LJ 6 of the Income Tax Act 2007 is changed; and the change occurs after the taxpayer has made an appli- cation under section 78B.
“(b) “Compare: 2004 No 35 s LC 13(2) “78D Evidential requirements for tax credits A taxpayer who has a tax credit under section LB 3 or subparts LE, LF, or LO of the Income Tax Act 2007, must provide the Commissioner with sufﬁcient evidence of the credit, includ- ing, as applicable— “(a) for an imputation credit, a shareholder dividend state- ment: for an FDP credit, a shareholder dividend statement for the FDP credit: for a credit for RWT, an RWT withholding certiﬁcate for the amount of RWT: for a Maori authority credit, a Maori authority distribu- tion statement for the credit: any other information that the Commissioner may re- quire.
“(b) “(c) “(d) “(e) “Compare: 2004 No 35 ss LB 2(4), LD 3(4), LD 3A(5), LD 8(3), LD 9(4) 3276 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New sections 78B to 78F—continued “78E Information for underlying foreign credits “(1) For the purposes of section LL 2 of the Income Tax Act 2007, a taxpayer must have available to provide, if asked,— “(a) “(b) “(c) a copy of a receipt issued by the relevant revenue au- thority evidencing payment of the relevant tax; or a copy of a foreign return of income that is of substan- tially the same nature as a return of income under the In- land Revenue Acts, when the return of income has been provided to the relevant revenue authority and shows the relevant tax as payable; or a copy of a demand, statement of account, or a simi- lar document issued by the relevant revenue authority, seeking payment of the relevant tax.
“(2) Subsection (1) does not apply if the Commissioner is satisﬁed on the basis of evidence such as an auditor’s certiﬁcate that the relevant tax is paid or payable.
“Compare: 2004 No 35 s LF 6(4) “78F Time for providing information in relation to underlying foreign credits A taxpayer who has a tax credit for an amount of underlying foreign tax must provide to the Commissioner information that is necessary to verify a calculation of their credit under subpart LL of the Income Tax Act 2007 within— “(a) 4 years after the end of the accounting year in which the person may ﬁrst use the credit under section LA 2 of the Income Tax Act 2007; and a further time that the Commissioner may allow, having regard to the time allowed for applications under section 78B.
“(b) “Compare: 2004 No 35 s LF 6(6)”.

Section 79 Section 79: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

3277 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 Section 80 Section 80: “Income Tax Act 2004” is replaced by “Income Tax Act 2007”.

Section 80C Section 80C(1A): “resident withholding income that had insufﬁcient resident withholding tax deducted” is replaced by “resident passive income from which insufﬁcient RWT was withheld”.
Section 80D Section 80D(1)(c)(iii): “section NC 16 of the Income Tax Act 2004 to furnish the Commissioner with an employer monthly schedule relat- ing to a source deduction payment” is replaced by “section RD 4(2) of the Income Tax Act 2007 to provide to the Commissioner an em- ployer monthly schedule relating to a PAYE income payment”.

Section 80E Section 80E(2)(c): “source deductions or withholding deductions” is replaced by “tax withheld for PAYE income payments and other income”.
Section 80E(2)(ea): “certiﬁcate of entitlement has been issued under section KD 5 of the Income Tax Act 2004” is replaced by “notice of entitlement has been given under section 80KD”.

Section 80F Section 80F(5): “RWT deduction certiﬁcate” is replaced by “RWT withholding certiﬁcate”.

Section 80H Section 80H(3)(c) and (d): “section MD 1(1A) of the Income Tax Act 2004” is replaced by “section RM 5 of the Income Tax Act 2007” in each place where it appears.
3278 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B After section 80I: insert the following: “Part 3B “Credits of Tax “Applying for payment by instalment “80KA Applications for payment of tax credit by instalment “(1) This section applies to applications made under section MF 1 of the Income Tax Act 2007.

“(2) An application by a person who wants to be paid their tax credit (other than a parental tax credit) by instalment must be made before the selected period starts.
“(4) “(3) A person who wants to be paid their parental tax credit by instalment must apply no later than 3 months after the date of the dependent child’s birth.

If a person referred to in subsection (3) applies more than 3 months after the date of the dependent child’s birth, the per- son may receive the parental tax credit only after taking into account their end of year assessment under subpart LA of the Income Tax Act 2007 for the tax year in which the birth oc- curs.
If the 3-month period described in subsection (3) spans 2 tax years and the whole of the selected period falls in the ﬁrst tax year, the selected period is treated as falling in the second tax year if all instalments are paid to the person in the second tax year.
“Compare: 2004 No 35 s KD 5(1B)–(1C) “(5) “80KB Contents of application “(1) An application referred to in section 80KA must— “(a) be in a form prescribed by the Commissioner; and “(b) be signed by the person and any other person who, at the time at which the application is made, expects to be, in the selected period, their spouse, civil union partner, or de facto partner; and give, for each person who signed the application (the signatory), a complete statement of— “(c) 3279 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New Part 3B—continued Part 3B—continued “(i) “(ii) the family scheme income that is expected to be attributable to the tax year; and the family scheme income that is expected to be attributable to the selected period; and choose whether the instalments should be paid weekly or fortnightly; and contain any other information required by the Commis- sioner; and be accompanied by the information described in sub- section (2).
“(d) “(e) “(f) “(2) The application under subsection (1) must be accompanied for a signatory who expects to derive income from em- ployment, evidence of the amount of income from em- ployment derived by them in the period of 1 month im- mediately before the date on which the application is made: for a signatory who expects to derive income from a business,— “(i) a copy of the ﬁnancial statements of the business for the tax year or corresponding income year immediately before the tax year that contains the selected period; or if the ﬁnancial statements referred to in subpara- graph (i) have not been completed, a copy of the ﬁnancial statements for the business for the tax year or corresponding income year that is before the year immediately before the tax year that con- tains the selected period; or “(ii) “(iii) a set of budgeted accounts of the business for the tax year or corresponding income year that contains the selected period; or “(iv) other evidence in relation to the business for the tax year or corresponding income year that con- tains the selected period: by,— “(a) “(b) 3280 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B—continued Part 3B—continued “(c) “(d) unless paragraph (d) applies, the tax ﬁle number of each child for whom an entitlement to a tax credit arises: in the case of a child that has died or is given up for adoption, a birth certiﬁcate or other evidence verifying the birth or existence of the child for whom an entitle- ment to a tax credit arises.
“(3) Subsection (2)(a) does not apply if the Commissioner consid- ers that the Commissioner has enough evidence of a signa- tory’s income from employment.

“(4) Subsection (2)(d) does not apply to an application made by a person who is an adoptive parent, as that term is deﬁned in the Adoption Act 1955.
“Compare: 2004 No 35 s KD 5(2)–(2AB) “80KC When tax ﬁle number of child does not accompany application “(1) Subsection (2) applies when— “(a) “(b) an application referred to in section 80KA is not accom- panied by the tax ﬁle number of each child for whom an entitlement to a tax credit arises; and the Commissioner has enough other evidence of the per- son’s entitlement.
“(2) The Commissioner must— provide the person with a notice of entitlement; and “(a) “(b) pay to the person instalments of a tax credit under sec- tion MA 1 or, as applicable, sections MB 1 and ME 1 of the Income Tax Act 2007 for a period of 56 days.

“(3) Subsection (4) applies when the person or their spouse, civil union partner, or de facto partner does not provide the tax ﬁle number of a child for whom an entitlement to a tax credit arises within the 56-day period.
“(4) The Commissioner must stop paying the tax credit for the child until the tax ﬁle number is provided.

“Compare: 2004 No 35 s KD 5(3), (3A) 3281 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New Part 3B—continued Part 3B—continued “80KD What Commissioner must do on receipt of application “(1) This section applies when the Commissioner receives an ap- plication that complies with section 80KB.
“(2) The Commissioner must do the following: “(a) “(b) “(c) determine under sections MD 1, or MD 1 and ME 1 of the Income Tax Act 2007, as applicable, the estimated amount of tax credit to which the person would be en- titled for the selected period; and calculate under section MF 3 of that Act the amount that, if the Commissioner gave a person a notice of en- titlement for the whole selected period, would be the in- terim instalment of the tax credit that would be set out in the notice; and for all or some of the selected period, give the person a notice (the notice of entitlement) setting out— “(i) the amount of the instalment of the tax credit to which the person is entitled; and the amount after abatement contributed by the family support to the instalment; and “(ii) “(iii) the amount of credit after abatement contributed “(iv) “(v) “(vi) by the in-work payment to the instalment; and the amount after abatement contributed by the child tax credit to the instalment; and the amount after abatement contributed by the parental tax credit to the instalment; and the amount contributed by the family tax credit to the instalment.
“(3) The Commissioner must keep a copy of every notice of entitle- ment that is given under this section.

“Compare: 2004 No 35 s KD 5(4), (5)(a) “Notices of entitlement “80KE Notices of entitlement A notice of entitlement issued under section 80KD— “(a) is not transferable; and 3282 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B—continued Part 3B—continued “(b) is subject to the terms and conditions set out in it by the Commissioner.
“Compare: 2004 No 35 s KD 5(11) “80KF Effect of giving notice of entitlement “(1) If a notice of entitlement has been given to a person, the Com- missioner must pay the person instalments of tax credit under section 80KN.
“(2) A person continues to be entitled to a tax credit under sec- tion MC 2 or, as applicable, sections MA 1 and ME 1 of the Income Tax Act 2007 for relationship periods after the rela- tionship period for which an application was made, until the Commissioner cancels the notice under section 80KH.
“Compare: 2004 No 35 s KD 5(2A), (5)(b), (7) “80KG Notifying Commissioner of events affecting notice of entitlement “(1) Subsection (2) applies when— a person has been given a notice of entitlement; and “(a) “(b) 1 or more of the events described in subsection (3) occur within the period starting on the date of the notice of entitlement and ending on the last day of the selected period.
“(2) The person must notify the Commissioner immediately if an event of the kind described in subsection (3) occurs that may result in the person losing their entitlement.
“(3) The events include— “(a) “(b) “(c) the person or their spouse, civil union partner, or de facto partner stops being the principal caregiver of a child, and the person expects that they will not resume the role of principal caregiver for a period of more than 56 consecutive days; or the person starts or stops being a spouse, civil union partner, or de facto partner; or any other event of a kind set out in the notice of entitle- ment for the purposes of this subsection.
3283 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New Part 3B—continued Part 3B—continued “(4) Subsection (5) applies when— “(a) a notice of entitlement has been issued to a person; and “(b) 1 or more of the events described in subsection (6) occur.

“(5) The person may notify the Commissioner if an event of the kind described in subsection (6) occurs that may change a per- son’s entitlement.
“(6) The events include— “(a) “(b) the person or their spouse, civil union partner, or de facto partner becomes the principal caregiver of any child; or something happens that the person thinks may affect their entitlement to the tax credit speciﬁed in the notice of entitlement; or the notice of entitlement is lost or destroyed.
“(c) “Compare: 2004 No 35 s KD 5(9) “80KH Cancellation of notice of entitlement “(1) This section applies when the Commissioner— “(a) “(b) “(c) is notiﬁed under section 80KG; or considers that a notice of entitlement given to a person no longer applies; or is advised by the chief executive of the administering department, under sections 84 or 85G, that the person is also receiving a tax credit from the chief executive or will receive a tax credit from the chief executive.
“(2) The Commissioner may, on notifying the person,— cancel the notice of entitlement; or “(a) “(b) provide a replacement notice of entitlement for the same relationship period or a different relationship period, or provide a supplement to the notice of entitlement, as ap- propriate, having regard to information in the Commis- sioner’s possession.
“Compare: 2004 No 35 s KD 5(10), (12) 3284 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B—continued Part 3B—continued “Payments to holders of notices of entitlement “80KI Payment of tax credit by instalment by Commissioner “(1) This section applies when the Commissioner has given a notice “(2) of entitlement to a person.

In the period described in subsection (3), the Commissioner must pay to the person the instalments of the tax credit set out in the notice of entitlement.
“(3) The period— “(a) “(b) starts on the day stated in the notice of entitlement; and ends with the earlier of— “(i) the day on which the notice of entitlement is can- celled by the Commissioner; or the end date stated in the notice of entitlement.

“(ii) “(4) The Commissioner may choose the days on which the instal- ments are paid.
“Compare: 2004 No 35 s KD 7(1) “80KJ Delay in providing notice of entitlement “(1) This section applies when the Commissioner thinks that the time taken to provide a notice of entitlement has been unduly delayed.

“(2) The Commissioner may pay the instalments of the tax credit that the Commissioner thinks should be paid, having regard to the circumstances of the case.
“Compare: 2004 No 35 s KD 7(3) “80KK Payment by instalment of family support (without abatement) “(1) This section applies when the Commissioner considers, on the basis of information provided under section 85G by the chief executive, that a person is entitled to family support.

In the period described in subsection (3), the Commissioner must pay to the person the family support by instalment and without abatement.
“(2) “(3) The period— 3285 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New Part 3B—continued Part 3B—continued “(a) “(b) “(ii) starts on the day following the day that the chief execu- tive says is the last day that the person is entitled to— “(i) an income-tested beneﬁt, an orphan’s beneﬁt, or an unsupported child’s beneﬁt paid or payable under the Social Security Act 1964; or a family assistance credit paid under section 80KN; and ends on the earlier of— “(i) the day before the ﬁrst day stated in a notice of entitlement that is provided later: a period of not more than 56 days, starting on the ﬁrst day referred to in paragraph (a).
“(ii) “(4) Subsection (5) applies when the chief executive pays the fam- ily support for part of the 56-day period referred to in subsec- tion (3)(b)(ii).

“(5) The period referred to in subsection (3)(b)(ii) is reduced by the period for which the chief executive paid the family support.
“Compare: 2004 No 35 s KD 7(2B), (2C) “80KL Payment of instalments into accounts “(1) Unless the Commissioner in a particular case otherwise deter- mines, it is a condition of the receipt of tax credits paid by instalments by the Commissioner that— “(a) the person, or the person and their spouse, civil union partner, or de facto partner,— “(i) gives the Commissioner the details of an existing bank account held by the person (whether alone or jointly with their spouse, civil union partner, or de facto partner); or “(ii) opens a bank account (if they do not have one), and gives the Commissioner details of that ac- count; and the existing account or, as applicable, the opened ac- count is an account held as described in subsection (2).
“(b) “(2) The account must be held with— 3286 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B—continued Part 3B—continued “(a) “(b) a registered bank within the meaning of that term in sec- tion 2 of the Reserve Bank of New Zealand Act 1989; or a building society, in respect of any deposits with the building society; or the Public Service Investment Society Limited; or a credit union within the meaning of that term in section 2 of the Friendly Societies and Credit Unions Act 1982.
“(3) The Commissioner must pay every instalment of tax credit into “(c) “(d) the account.

“Compare: 2004 No 35 s KD 7(4) “80KM Summary of instalments paid “(1) This section applies when the Commissioner pays to a person instalments of the tax credit shown in the notice of entitlement given to the person.
“(2) The Commissioner must give the person— “(a) “(b) a summary showing the total of all the tax credits paid by instalments under the person’s notice of entitlement for the tax year; and any other information prescribed by the Commissioner.
“(3) The Commissioner must provide the summary— “(a) “(b) for a non-ﬁling taxpayer, on or before 20 May next fol- lowing the last day of the tax year in which the payment is made; and for a ﬁling taxpayer, on the same date that the Commis- sioner issues the person with an income statement for the tax year in which the payment is made.
“Compare: 2004 No 35 s KD 7(2), (2A) “Payments of tax credit by chief executive “80KN Payment of tax credit by chief executive “(1) This section applies when— 3287 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New Part 3B—continued Part 3B—continued “(a) “(b) in a tax year, the chief executive of the administering department pays to a person an income-tested beneﬁt; and the chief executive is satisﬁed that— “(i) the person is entitled to receive a family assist- ance credit for which the amount of the family credit abatement is zero; or the chief executive is authorised by an Order in Council made under section 225A to pay the per- son a family assistance credit for which the fam- ily credit abatement is more than zero.
“(ii) “(2) When paying the income-tested beneﬁt, the chief executive must pay to the person the family assistance credit that the chief executive considers that the person is entitled to at the time of the payment.
“Compare: 2004 No 35 s KD 6(1) “80KO Determining family assistance credit In determining the amount of family assistance credit that is payable under section 80KN, the chief executive must— “(a) use the method set out in section MF 3 of the Income Tax Act 2007, if required to calculate the amount of the family credit abatement; and take into account the rate of family support and the fam- ily credit abatement given by sections MD 3 and MD 13 of that Act.
“(b) “Compare: 2004 No 35 s KD 6(1A) “(a) “80KP When entitlement to income-tested beneﬁt ends “(1) This section applies for the purposes of section 80KN when— a person’s entitlement to an income-tested beneﬁt ends; and they apply to the chief executive to have the payment of their family support continued.
“(b) “(2) The chief executive must continue to pay the family support to the person for a period determined by the chief executive 3288 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B—continued Part 3B—continued in consultation with the Commissioner.

The amount is deter- mined as if the person were still being paid an income-tested beneﬁt during this period.
“Compare: 2004 No 35 s KD 6(1B) “80KQ No authority to pay family assistance credit “(1) This section applies when the chief executive is not satisﬁed that they are authorised to pay the family assistance credit to the person under the section.

“(2) The chief executive may ask the Commissioner to accept from the person their application for a notice of entitlement.
“Compare: 2004 No 35 s KD 6(1C) “80KR Request by chief executive to stop payment of family assistance credit “(1) This section applies when— “(a) “(b) the chief executive has made a request under section 80KQ(2); but the chief executive is satisﬁed that they are authorised to pay the person the family assistance credit.

“(2) The chief executive may ask the Commissioner to stop paying the person under their notice of entitlement.
“Compare: 2004 No 35 s KD 6(1D) “80KS Request by person to stop or re-start payment of tax credit “(1) Subsection (2) applies, despite section 80KN or 80KP, when a person notiﬁes the chief executive not to pay them the tax credit.

“(2) The chief executive must, as soon as practicable, stop paying the person the tax credit.

“(3) Subsection (4) applies when a person cancels their notiﬁcation under subsection (1).
3289 Schedule 50 Income Tax Act 2007 Reprinted as at 29 May 2012 New Part 3B—continued Part 3B—continued “(4) The chief executive must, as soon as practicable, start paying the person the tax credit again.

“Compare: 2004 No 35 s KD 6(2), (3) “80KT Details of payments of tax credits “(1) This section applies when the chief executive pays under sec- tion 80KN a tax credit to a person.
“(2) The chief executive must, for each month in which a payment is made, give the Commissioner details of the payment in an employer monthly schedule.
“(3) The chief executive must, not later than 20 April next follow- ing the last day of the tax year in which the payment is made, give the person— “(a) signed by the chief executive; and in a form authorised by the Commissioner; and a summary— “(i) “(ii) “(iii) showing the total of all of the tax credits paid; and any other information required by the Commissioner.
“(b) “(4) The chief executive must, not later than 31 May in the tax year in which the summary is provided under subsection (3), give the Commissioner— “(a) a copy of every summary given by the chief executive under subsection (3)(a); and any other information required by the Commissioner.
“(b) “Compare: 2004 No 35 s KD 6(4) “When Commissioner takes over payment of tax credit from chief executive “80KU Payment of tax credit taken over by Commissioner “(1) This section applies when— “(a) in a tax year, the chief executive stops paying a person an amount of tax credit with an income-tested beneﬁt; and 3290 Reprinted as at 29 May 2012 Income Tax Act 2007 Schedule 50 New Part 3B—continued Part 3B—continued “(b) “(c) the person applies to the Commissioner for payment of family assistance credit, family tax credit, or family support; and the Commissioner determines that the person is entitled to the tax credit under section MD 1 of the Income Tax Act 2007 for the period described in subsection (3).
“(2) For the period described in subsection (3), the Commissioner may pay to the person the arrears of the tax credits, other than the in-work payment and the parental tax credit.

“(3) The period— “(a) starts on the later of— “(i) “(ii) the ﬁrst day of the tax year; and the day following that on which the chief execu- tive stops paying the amount to the person; and “(b) ends on the day before the ﬁrst day stated in a notice of entitlement that is later given to the person.
“Compare: 2004 No 35 s KD 7(3A), (3B), (3C) “80KV Statement of family scheme income “(1) This section applies to a person to whom the Commissioner has given a notice of entitlement for a tax year.
“(2) The person must, in the time within which they are required to ﬁle their return of income for the tax year, give the Commis- sioner a statement setting out— “(a) a complete statement of their family scheme income signed by the person; and a complete statement of the family scheme income for the tax year of their spouse, civil union partner, or de facto partner signed by that person.