Estate and Gift Duties Act 1968

1: Short Title, commencement, etc
1: This Act may be cited as the Estate and Gift Duties Act 1968.
2: This Act shall come into force on 1 January 1969.
3: This Act is hereby declared to be one of the Inland Revenue Acts within the meaning of the Tax Administration Act 1994 Section 1(3) replaced 1 April 1995 Income Tax Act 1994
2: Interpretation
1: In this Act, unless the context otherwise requires,— administration Administration Act 1969 administrator Commissioner Tax Administration Act 1994 debenture debt group superannuation scheme
a: any fund, plan, or scheme under the Government Superannuation Fund Act 1956 National Provident Fund Act 1950
b: any fund, plan, or scheme established for the purpose of providing superannuation benefits, or death benefits, or superannuation and death benefits, in respect of the employees of an employer or any class or classes of those employees:
c: any registered scheme within the meaning of section 6(1)
i: is a superannuation scheme, workplace savings scheme, or KiwiSaver scheme within the meaning of section 6(1)
ii: is established for the benefit of contributors to the scheme otherwise than as employees of any employer
d: interest on gift duty Part 7 penalty on gift duty section 139B pension prescribed the Tax Administration Act 1994 share Taxation Review Authority Authority Taxation Review Authorities Act 1994 will
2: In this Act— disposition of property
a: the issue
b: the creation of a trust:
c: the grant or creation of any lease, mortgage, charge, servitude, licence, power, or other right, estate, or interest in or over any property:
d: the release, discharge, surrender, forfeiture, or abandonment of any debt, contract, or thing in action, or of any right, power, estate, or interest in or over any property; and for this purpose a debt, or any other right, estate, or interest, shall be deemed to have been released or surrendered when it has become irrecoverable or unenforceable by action through the lapse of time:
e: the exercise of a general power of appointment in favour of any person other than the holder of the power:
f: any transaction or series of related or connected transactions entered into by any person with intent thereby to diminish, directly or indirectly, the value of his or her own estate and to increase the value of the estate of any other person; and for this purpose the passing by a company of a resolution which, by the extinguishment or alteration of the rights attaching to any shares or debentures of the company, results, directly or indirectly, in the estate of any shareholder or debenture holder of the company being increased in value at the expense of the estate of any other shareholder or debenture holder shall be deemed to be a transaction entered into by that other shareholder or debenture holder if he or she could have prevented the passing of the resolution by voting against it or otherwise;— but does not include a disclaimer of an interest under a disposition made inter vivos donee
a: any person becoming entitled to any beneficial interest under a gift; or
b: any person to whom property passes under a gift to be held for the purpose of creating a charitable trust, or for the establishment of any society or institution exclusively for charitable purposes, or to aid any such trust, society, or institution; or
c: any trust, society, or institution which receives a gift;— and includes a body corporate and, unless the context otherwise requires, the administrator of a deceased donee donor dutiable gift section 63 general power of appointment
a: any power or authority created on or before 31 March 1967 that—
i: is conferred by the will of any person dying on or before that date, or is conferred by any settlement inter vivos
ii: enables, or would enable if the holder were of full capacity, the holder of the power or authority to appoint or dispose of any property, or to charge any sum of money upon any property, as the holder thinks fit for the holder's own benefit; and
iii: is exercisable by instrument inter vivos
iv: is not a power or authority exercisable by a person in a fiduciary capacity under a disposition not made by the person, or exercisable by a mortgagee:
b: any power or authority created on or after 1 April 1967 that—
i: is conferred by the will of any person dying on or after that date, or is conferred by any settlement inter vivos
ii: enables, or would enable if the holder were of full capacity, the holder of the power or authority to obtain or appoint or dispose of any property, or to charge any sum of money upon any property, as the holder thinks fit for the holder's own benefit; and
iii: is exercisable orally or by instrument inter vivos
iv: is not a power or authority exercisable by a person in a fiduciary capacity under a disposition not made by the person, or exercisable by a mortgagee gift disposition of property before 1 October 2011 provided that where the consideration in money or money's worth is inadequate, the disposition shall be deemed to be a gift to the extent of that inadequacy only voluntary contract provided that where the consideration in money or money's worth is inadequate, the contract shall be deemed to be voluntary to the extent of that inadequacy only.
3: For the purposes of this Act,—
a: persons are connected by blood relationship if within the fourth degree of relationship:
b: persons are connected by marriage , civil union or de facto relationship in a marriage , civil union or de facto relationship
c: persons are connected by adoption if one has been adopted as the child of the other or as the child of a person who is within the third degree of relationship to the other:
d: illegitimate relationship shall be equivalent to legitimate relationship. 1955 No 105 ss 2, 16(1)﻿(a)–(d), (g), (h), (2), 19(1), 22, 41, 42, 43(1) s 2(1) s 16(2)﻿(a), (b) ss 5(1), (7), 6 s 3 s 2(1) Section 2(1) administration : amended 1 January 1971 section 84(1) Administration Act 1969 Section 2(1) Commissioner amended 1 April 1995 Income Tax Act 1994 Section 2(1) Commonwealth repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) deceased person the deceased repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) deceased serviceman repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) emergency force repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) foreign assets repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) general power of appointment repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) group superannuation scheme amended 1 November 1976 section 3(3) Government Superannuation Fund Amendment Act 1976 Section 2(1) group superannuation scheme replaced 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 2(1) group superannuation scheme paragraph (d) repealed 6 August 1976 Superannuation Schemes Act 1976 Section 2(1) infant child of the deceased repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) interest on gift duty inserted 26 July 1996 section 2(1) Estate and Gift Duties Amendment Act 1996 Section 2(1) Minister repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(1) orphan infant child repealed 19 October 1979 section 2(1) Estate and Gift Duties Amendment Act 1979 Section 2(1) penalty on gift duty inserted 26 July 1996 section 2(2) Estate and Gift Duties Amendment Act 1996 Section 2(1) prescribed amended 1 April 1995 Income Tax Act 1994 Section 2(1) Taxation Review Authority Authority inserted 28 September 1993 section 2 Estate and Gift Duties Amendment Act 1993 Section 2(1) Taxation Review Authority Authority amended 1 April 1995 Income Tax Act 1994 Section 2(2) allowable debt repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) charitable allowance repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) charitable succession repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) charitable successor repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) deceased successor repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) disposition of property amended 14 September 1994 Estate and Gift Duties Amendment Act 1994 Section 2(2) donee replaced 13 October 1972 Estate and Gift Duties Amendment Act 1972 Section 2(2) dutiable estate repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) final balance repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) general power of appointment inserted 6 October 2009 section 857 Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 Section 2(2) gift amended 1 October 2011 section 245(2) Taxation (Tax Administration and Remedial Matters) Act 2011 Section 2(2) matrimonial home allowance repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) matrimonial property repealed 1 August 2001 section 64(2) Property (Relationships) Amendment Act 2001 Section 2(2) personal chattels repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) predecessor repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) succession repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(2) successor repealed 24 May 1999 section 4 Estate Duty Repeal Act 1999 Section 2(3)﻿(b) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 2(3)﻿(b) amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005
1: Estate duty
Part 1 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Imposition of estate duty Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
3: Limitation on imposition of estate duty
Section 3 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
4: Rates of estate duty
Section 4 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
5: Final balance
Section 5 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Dutiable estate Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
6: Dutiable estate
Section 6 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
7: Property passing under will or intestacy
Section 7 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
8: General power of appointment over property
Section 8 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
9: Donatio mortis causa Section 9 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
10: Dutiable gift made within 3 years of death
Section 10 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
11: Gift with reservation
Section 11 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
12: Settlement or other disposition made by deceased
Section 12 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
13: Joint property
Section 13 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
14: Policy of assurance
Section 14 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
15: Interest purchased or provided by the deceased
Section 15 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
16: Benefit under group superannuation scheme
Section 16 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Allowable debts Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
17: Allowable debts
Section 17 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Matrimonial home allowance Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
17A: Matrimonial home allowance
Section 17A repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Valuation of dutiable estate Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
18: Date of valuation of property included in dutiable estate
Section 18 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
19: Valuation of property
Section 19 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
20: Valuation of land
Section 20 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
21: Valuation of land on which trees are growing
Section 21 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
22: Valuation of shares
Section 22 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
23: Valuation of debt due to deceased
Section 23 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
24: Valuation of share or interest in partnership
Section 24 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
25: Valuation of annuities and other interests for life or other periods, or expectant on death or other events
Section 25 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
26: Valuation of contingent interests
Section 26 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Valuation of successions Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
27: Date of valuation of successions
Section 27 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
28: Valuation of successions
Section 28 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
29: Valuation of succession to contingent interests
Section 29 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
30: Valuation of succession to property subject to encumbrances
Section 30 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
2: Exemptions and reliefs from estate duty
Part 2 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Exemptions Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
31: Exemption for property included under section 33 of the Wills Act 1837 (UK)
Section 31 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
31A: Exemption for property comprised in order under
Matrimonial Property Act 1976 Section 31A repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
32: Exemption for certain pay of deceased servicemen
Section 32 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
33: Exemption for certain gifts or specific bequests or devises
Section 33 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
34: Exemption for certain property comprised in a settlement or other disposition of property made by deceased
Section 34 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
35: Exemption for pensions payable under group superannuation schemes
Section 35 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
35A: Exemption for unpaid war pensions and social security benefits
Section 35A repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
35B: Exemption for certain personal chattels
Section 35B repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
35BA: Exemption for base price adjustment under accrual rules in Income Tax Act 1994
Section 35BA repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999 Reliefs Heading repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
35C: Valuation of succession for purposes of relief
Section 35C repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
36: Relief for succession of wife
Section 36 repealed 19 October 1979 section 5(1)﻿(a) Estate and Gift Duties Amendment Act 1979
37: Relief for succession of husband
Section 37 repealed 19 October 1979 section 5(1)﻿(b) Estate and Gift Duties Amendment Act 1979
38: Relief for succession of infant children
Section 38 repealed 19 October 1979 section 5(1)﻿(c) Estate and Gift Duties Amendment Act 1979
38A: Relief for succession of orphan infant child
Section 38A repealed 19 October 1979 section 2(2) Estate and Gift Duties Amendment Act 1979
39: Relief for successions in estates of servicemen
Section 39 repealed 19 October 1979 section 5(1)﻿(d) Estate and Gift Duties Amendment Act 1979
39A: Relief for succession of charitable successor
Section 39A repealed 19 October 1979 section 3(4) Estate and Gift Duties Amendment Act 1979
40: Relief for estate duty paid outside New Zealand
Section 40 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
41: Relief from successive estate duties
Section 41 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
42: Relief for gift duty
Section 42 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
3: Assessment and collection of estate duty
Part 3 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
43: Custody and release of administration by Commissioner
Section 43 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
43A: Commissioner may defer payment of estate duty on certain mining ventures
Section 43A repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
44: Estate duty payable although no administration
Section 44 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
45: Notice of payments, etc, without administration to be given to Commissioner
Section 45 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
46: Administrators' statement to be delivered to Commissioner
Section 46 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
47: High Court Section 47 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
48: Dealing with estate of deceased without administration
Section 48 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
49: Assessment of estate duty
Section 49 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
50: Composition for estate duty
Section 50 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
51: Penalty on unpaid estate duty
Section 51 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
52: Interest on unpaid estate duty
Section 52 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
53: Estate duty payable by administrator
Section 53 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
54: Proportion of estate duty also recoverable from successors
Section 54 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
55: How estate duty payable as between successors
Section 55 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
56: Estate duty to be a charge on the dutiable estate
Section 56 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
57: Registration of charge for estate duty
Section 57 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
58: Enforcement of charge for estate duty by
High Court Section 58 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
59: Remission of estate duty, penalty, and interest
Section 59 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
60: Refund of estate duty, penalty, and interest paid in excess
Section 60 repealed 24 May 1999 section 5 Estate Duty Repeal Act 1999
4: Gift duty
Imposition of gift duty
61: Gift duty imposed
Subject to this Act, a duty (in this Act referred to as gift duty) shall be payable to the Crown in respect of every dutiable gift which is made after the commencement of this Act and before 1 October 2011 1955 No 105 s 40 Section 61 amended 1 October 2011 section 245(3) Taxation (Tax Administration and Remedial Matters) Act 2011
62: Rates of gift duty
Gift duty shall be charged and assessed on each dutiable gift in accordance with the following formula: (a ÷ b) × c where— a is the value of the dutiable gift; and b is the value of the dutiable gift together with any other dutiable gifts made at the same time or within 12 months subsequently or previously (whether before or after the commencement of this Act) by the same donor to the same or any other donee; and c is the amount of gift duty payable on item b at the rate set out in Schedule 3 1955 No 105 s 50(1), (2) s 4(2) Section 62 repealed 20 May 1999 section 7 Stamp Duty Abolition Act 1999
63: Dutiable gift
1: Subject to this Act, a dutiable gift
a: all the property, wherever situated, comprised in any gift made by any donor to any donee, where the donor is domiciled in New Zealand at the date of the gift, or is a body corporate incorporated in New Zealand:
b: all the property, situated in New Zealand, comprised in any gift made by any donor to any donee, where the donor is domiciled out of New Zealand at the date of the gift, or is a body corporate incorporated out of New Zealand.
2: For the purpose of subsection (1)﻿(b), the situation of the classes of property referred to in this subsection is determined as follows:
a: a seagoing ship, or a share or interest in such a ship, is treated as property situated in New Zealand if the ship is registered in New Zealand, and in other cases is treated as property situated outside New Zealand:
b: property at sea, other than a seagoing ship, is treated as being situated in New Zealand if in the course of transit, directly or indirectly, to New Zealand, and in other cases is treated as being situated outside New Zealand:
c: the situation of a debt payable under a bond or other deed is not determined by where the bond or deed is situated:
d: a debt owing by a corporation, whether incorporated in New Zealand or elsewhere, is treated as property situated in New Zealand if the debt was incurred or is payable in New Zealand and the corporation has an office or place of business in New Zealand, and in other cases is treated as being property situated outside New Zealand:
e: a debt owing by a person or persons other than a corporation is treated as property situated in New Zealand if any of the debtors are resident in New Zealand, and in other cases is treated as property situated outside New Zealand:
f: a debt owing by the Crown on behalf of the Government of New Zealand is treated as property situated in New Zealand if the debt was incurred or is payable in New Zealand, and in other cases is treated as property situated outside New Zealand:
g: despite paragraphs (a) to (f), a debt represented by an instrument which is negotiable in New Zealand is treated as being property situated in the country in which the instrument is, or is treated as being, situated:
h: despite paragraphs (a) to (g), a debt which is secured by mortgage, charge or otherwise on property situated or treated as being situated in New Zealand is treated itself as being situated in New Zealand, unless the value of the security is less than the debt's value, in which case the debt is treated as being situated in New Zealand to the extent of the value of the security:
i: shares in a company incorporated in New Zealand are treated as property situated in New Zealand:
j: shares in a company incorporated outside of New Zealand are treated as property situated outside of New Zealand, except shares registered in a branch register in New Zealand under a law in force in another part of the Commonwealth. 1955 No 105 s 45 Section 63(2) replaced 24 May 1999 section 6 Estate Duty Repeal Act 1999
64: When voluntary contracts to be deemed gifts
1: A disposition of property made in performance or satisfaction of a voluntary contract shall be deemed to be a gift, whether the contract or disposition was made before or after the commencement of this Act.
2: A voluntary contract, whether made before or after the commencement of this Act, shall not in itself constitute a gift, but shall become or be deemed to have become a gift so soon and so far as it has attached to and affected the legal or equitable title to any property to which it relates. 1955 No 105 s 43(2), (3)
65: Disposition of property by controlled company
1: For the purposes of this section, the term controlled company
2: Where a disposition of property is made by a controlled company to or for the benefit of—
a: any person connected with the controlling person of that controlled company by blood relationship, marriage, civil union or de facto relationship
b: any company that is, at the time when the disposition is made, controlled by any person or persons connected with that controlling person by blood relationship, marriage, civil union or de facto relationship the disposition shall be deemed for the purposes of this Act to be made by that controlling person, and any consideration received therefor by that controlled company shall be deemed to have been received by that controlling person, and any act or thing done or effected by that controlled company shall be deemed to have been done or effected by that controlling person: provided that the payment by that controlled company of the gift duty, penalty on gift duty, or interest on gift duty in respect of any such disposition shall not constitute a dutiable gift. Section 65(2)﻿(a) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 65(2)﻿(b) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Valuation of dutiable gift
66: Date of valuation of dutiable gift
For gift duty purposes, every dutiable gift shall be valued as at the date of the making of the gift. 1955 No 105 s 51(1)
67: Valuation of property
For gift duty purposes, and subject to sections 68 to 70 1955 No 105 s 76 1960 No 43 s 17(2)
68: Valuation of certain property
Section 68 repealed 24 May 1999 section 7 Estate Duty Repeal Act 1999
68A: Valuation of land
1: In this section, capital value land Rating Valuations Act 1998
2: For the purpose of gift duty, the value of land situated in New Zealand must be either—
a: determined by agreement between the Commissioner and the donor; or
b: in the absence of an agreement, determined by the Commissioner in accordance with—
i: the capital value of the land as it appears in the district valuation roll in force under the Rating Valuations Act 1998
ii: a special valuation of the capital value of the land, made by a registered valuer at the request of the Commissioner for the purpose of this Act, on the date that the value of the land is to be determined.
3: If the value of land has been determined by the Commissioner in accordance with subsection (2)﻿(b)﻿(i), the donor may, no later than 1 month after the date on which the notice of the determination is given, or within such extended time as the Commissioner may allow, require the Commissioner to redetermine the value of the land in accordance with subsection (2)﻿(b)﻿(ii).
4: If subsection (3) applies, the registered valuer's fee is recoverable by the Commissioner from the donor as a debt due to the Crown.
5: A registered valuer who makes a special valuation of land under subsection (2) or (3) must give notice of the amount of the valuation to the Commissioner.
6: If the Commissioner receives notice of a special valuation, the Commissioner must—
a: determine the value of the land in accordance with the special valuation; and
b: give notice of the determination to the donor.
7: If subsection (6) applies, section 82(3)
8: Subject to section 68B
9: The district valuation roll is not to be altered as a result of—
a: an agreement reached for the purpose of this section; or
b: a valuation or revaluation made for the purpose of this section; or
c: a decision of a territorial authority or a Land Valuation Tribunal in accordance with section 68B Part 4 Section 68A inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999
68B: Objections to special valuations of land
1: In this section, land owner Rating Valuations Act 1998
2: If a donor is dissatisfied with a special valuation of land made by a registered valuer under section 68A
3: An objection must be made no later than 1 month after the date on which the notice of the determination is given to the donor by the Commissioner under section 68A(6)
4: The Commissioner must forward the objection to the Valuer-General and Part 4
5: The owner of the land does not have the right to object to the special valuation or to receive notices served under Part 4
6: If an alteration is made to the special valuation as a result of the objection, the Valuer-General must notify the Commissioner, and the Commissioner must redetermine the value of the land accordingly. Sections 68B inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999
68C: Valuation of shares
1: For the purpose of gift duty, when determining the value of shares in a company, the Commissioner may not take account of provisions in the company's constitution, in any agreement, deed or writing or in any other manner whatsoever that restricts the transfer or alienation of those shares, except to the extent that the Commissioner considers that the restrictive provisions are reasonable having regard to all relevant matters.
2: Relevant matters to which the Commissioner must have regard include—
a: the contribution to the company made by any relevant shareholder by way of services, management, capital or otherwise; and
b: the benefits received from the company by that shareholder. Section 68C inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999
68D: Valuation of debt due to donor or controlled company
1: In this section, controlled company
a: the donor; or
b: a person connected with the donor by blood relationship, marriage, civil union or de facto relationship
c: the donor and a person who meets paragraph (b).
2: For the purpose of subsection (1), control may be direct or indirect, or may be through the holding of a majority of shares in the company or any other company, or in any other manner whatsoever.
3: Subsection (4) applies if a dutiable gift is made in respect of a debt that is owed to a donor or a controlled company by—
a: a person connected with the donor by blood relationship, marriage, civil union or de facto relationship
b: a controlled company; or
c: a trustee for—
i: a person who meets paragraph (a); or
ii: a controlled company.
4: For the purpose of gift duty, the value of the debt is determined without taking into account that all or part of the debt may not be payable on or before the date of its valuation.
5: This section does not apply to a debt if the Commissioner is satisfied that the donor or the controlled company and the debtor were at all times dealing with each other in such a manner and on such terms as would be expected if the debtor were not the person, controlled company, or trustee referred to in subsection (3). Section 68D inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999 Section 68D(1)﻿(b) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 68D(3)﻿(a) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005
68E: Valuation of share or interest in partnership
1: For the purpose of gift duty, when determining the value of a share or interest in a partnership, the Commissioner may not take account of provisions in an agreement or arrangement by the partners that restricts the value of that share or interest, except to the extent that the Commissioner considers that the restrictive provisions are reasonable having regard to all relevant matters.
2: Relevant matters to which the Commissioner must have regard include—
a: the contribution to the partnership made by the respective partners by way of services, management, capital or otherwise; and
b: the benefits received from the partnership by the respective partners. Section 68E inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999
68F: Valuation of annuities and life interests
1: For the purpose of gift duty,—
a: the life expectation of a person is treated as the period specified in table A or table B of Schedule 2
b: the expectation of widowhood of a widow is treated as the period specified in table C of Schedule 2
2: Despite subsection (1), the Commissioner must determine the life expectation or widowhood of a person suffering from a mortal illness in such manner as the Commissioner thinks fit.
3: For the purpose of gift duty, the value of an annuity or other interest for the life of a person or for any other period, or the value of an interest expectant on death of a person or on any other event, is calculated on the basis of compound interest at the rate of 5% per annum with annual rests, and tables A, B, C, and D of Schedule 2 Section 68F inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999
68G: Valuation of contingent interests
1: For the purpose of gift duty, every contingency affecting the interest of the donee in the property that is comprised in a dutiable gift, or the value of that property, is treated as having been determined in the manner in which the Commissioner considers it probably will determine, and the interest is to be valued accordingly.
2: If the contingency determines differently from that assumed by the Commissioner, the interest must be revalued on the basis of the actual event and on the date on which the gift was made, and section 82(3)
3: If an interest in or the value of property will be affected by a widow's remarriage, that possibility—
a: is not treated as a contingency under this section; but
b: is taken into account in valuing the interest in accordance with table C of Schedule 2 Section 68G inserted 24 May 1999 section 8 Estate Duty Repeal Act 1999
69: Valuation of property subject to encumbrances
In valuing property for gift duty purposes, no deduction shall be allowed in respect of any mortgage, charge, encumbrance, or liability, in each case affecting or incident to the property, if and so far as any person acquiring any beneficial interest in the property is entitled as against any other person or property to any available right of contribution or indemnity in respect of that mortgage, charge, encumbrance, or liability. 1955 No 105 s 53 s 15
70: No deduction to be made in respect of benefit to donor
1: For the purposes of this section,— ascertainable benefit or advantage
a: by way of any estate or interest in the same or any other property; or
b: by way of mortgage or charge; or
c: by way of any annuity or other payment, whether periodical or not; or
d: by way of any contract for the benefit of the person making the disposition; or
e: by way of any condition or power of revocation or other disposition; or
f: in any other manner whatever;— but does not include any annuity or other payment, whether periodical or not, if and so far as the annuity or payment—
g: is of a fixed or ascertainable amount in money payable over a fixed or ascertainable period, or for life, or at a fixed or ascertainable date or dates, or on demand; and
h: is secured to the person making the disposition—
i: by a mortgage or charge over the property comprised in the disposition; or
ii: by an agreement for the sale and purchase of land comprised in the disposition; or
iii: by an agreement in writing to lease land comprised in the disposition; or
iv: by deed,— in each case executed by the person acquiring the beneficial interest under the disposition.
2: Where any disposition of property is, in whole or in part, a dutiable gift, and is made in consideration of, or with the reservation of, any benefit or advantage to or in favour of the person making the disposition, no deduction or allowance shall be made in respect of that benefit or advantage in calculating the value of the dutiable gift.
3: Notwithstanding anything in section 78 1955 No 105 s 54
5: Exemptions and reliefs from gift duty
Exemptions
71: Exemptions for gifts up to
$2,000 Where the Commissioner is satisfied that a gift, together with all other gifts made by the same donor to the same donee in the same calendar year, does not exceed in total $2,000 1955 No 105 s 46(1)﻿(a) 1961 No 28 s 5(1) Section 71 amended 1 April 1984 section 6(1) Estate and Gift Duties Amendment Act 1983 Section 71 amended 1 April 1984 section 6(1) Estate and Gift Duties Amendment Act 1983
72: Exemption for gifts for maintenance or education of family
Where the Commissioner is satisfied that any gift is made for or towards the maintenance of the wife, husband, civil union partner, de facto partner, 1955 No 105 s 46(1)﻿(b) Section 72 amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 72 amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005
73: Exemption for gifts to charities and certain bodies
1: Any gift creating a charitable trust, or establishing any society or institution exclusively for charitable purposes, or any gift in aid of any such trust, society, or institution, shall not constitute a dutiable gift if, at the time that the gift is made, the society, institution, or trustees of the trust is or are a tax charity, as that term is defined under section CW 41(5) of the Income Tax Act 2007
2: Without limiting the provisions of subsection (1), the following classes of gifts shall not constitute dutiable gifts:
aa: any gift required by an order of a court under the Law Reform (Testamentary Promises) Act 1949 Family Protection Act 1955
a: any gift to Heritage New Zealand Pouhere Taonga for the purposes of the Heritage New Zealand Pouhere Taonga Act 2014
b: any gift of a protected New Zealand object Protected Objects
ba: any gift to the Museum of New Zealand Te Papa Tongarewa Board for the purposes of the Museum of New Zealand Te Papa Tongarewa Act 1992
c: any gift to the Arts Council of New Zealand Toi Aotearoa for the purposes of the Arts Council of New Zealand Toi Aotearoa Act 2014
d: any gift to the Health Research Council of New Zealand for the purposes of health research:
da: any gift to Sport and Recreation New Zealand for the purposes of the Sport and Recreation New Zealand Act 2002
e: any gift to the New Zealand Patriotic Fund Board, the Canteen Fund Board, or any Provincial Patriotic Council for any patriotic purpose, or under the provisions of section 10C section 3
f: any gift to the Vocational Training Council for the purposes of the Vocational Training Council Act 1968
g:
h: any gift to the New Zealand Council for Educational Research for the purposes of the New Zealand Council for Educational Research Act 1972
i:
j: any gift to the Queen Elizabeth the Second National Trust for the purposes of the Queen Elizabeth the Second National Trust Act 1977
jb: any gift to a board that is constituted under subpart 5
jc: any gift to a tertiary education institution that is established under subpart 3
jd: any gift to an organisation that is—
i: part of the State Services as defined in section 5
ii: not an educational institution; and
iii: not carried on for the private pecuniary profit of any individual:
k: any gift made by a local authority under section 225C(d) section 225D
i: the proceeds of the sale of shares or equity securities referred to in section 225C
ii: any income derived from or capital gain arising on such proceeds, if that income or gain is paid to the community trust before a date set by the Governor-General by Order in Council for the purposes of this paragraph either in relation to that community trust or to community trusts generally:
ka: any gift made by a local authority under section 298(3)﻿(c)
i: the proceeds of the sale of shares or equity securities referred to in that section; or
ii: any income derived from or capital gain arising on such proceeds, if that income or gain is paid to that community trust before a date set by the Governor-General by Order in Council for the purposes of this subparagraph either in relation to that community trust or to community trusts generally:
kb: any gift to an organisation that is a local authority, or a council-controlled organisation as defined in section 6
l: any gift to the New Zealand Antarctic Institute for the purposes of the New Zealand Antarctic Institute Act 1996 :
m: any gift to the trustee of the Tokelau International Trust Fund, as defined in section YA 1 trust:
n: any gift to the trustee of the Niue International Trust Fund, as defined in section YA 1 that trust:
o: any gift to an organisation that is a donee organisation as defined in section YA 1
3: An order under subsection (2)﻿(k)﻿(ii) or (ka)﻿(ii) is secondary legislation ( see Part 3 1947 No 63 ss 10B(6) 45(2) s 3(1) s 20(3) s 22(2) s 47(a) s 13 s 25(2) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 73(1) amended 1 July 2008 section 57(2) Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 Section 73(1) amended 1 July 2008 section 72 Charities Act 2005 Section 73(2)﻿(aa) inserted 7 September 2010 section 195(2) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 73(2)﻿(a) replaced 20 May 2014 section 107 Heritage New Zealand Pouhere Taonga Act 2014 Section 73(2)﻿(b) amended 1 November 2006 section 35 Protected Objects Amendment Act 2006 Section 73(2)﻿(b) amended 1 April 1976 section 23(b) Protected Objects Act 1975 Section 73(2)﻿(ba) inserted 1 July 1992 section 31 Museum of New Zealand Te Papa Tongarewa Act 1992 Section 73(2)﻿(c) replaced 30 April 2014 section 27 Arts Council of New Zealand Toi Aotearoa Act 2014 Section 73(2)﻿(d) replaced 1 October 1990 section 54 Health Research Council Act 1990 Section 73(2)﻿(da) replaced 1 January 2003 section 62 Sport and Recreation New Zealand Act 2002 Section 73(2)﻿(e) amended on 1 October 1987 section 3 Patriotic and Canteen Funds Amendment Act 1987 Section 73(2)﻿(f) inserted 11 September 1969 Estate and Gift Duties Amendment Act 1969 Section 73(2)﻿(g) repealed 1 April 1976 section 93(1) Fire Service Act 1975 Section 73(2)﻿(h) inserted 1 January 1973 section 34(3) New Zealand Council for Educational Research Act 1972 Section 73(2)﻿(i) repealed 1 April 1987 section 40(1)﻿(c) Sport, Fitness, and Leisure Act 1987 Section 73(2)﻿(j) inserted 21 December 1977 section 30(4) Queen Elizabeth the Second National Trust Act 1977 Section 73(2)﻿(jb) inserted 1 July 2008 section 57(3) Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 Section 73(2)﻿(jb) amended 1 August 2020 section 668 Education and Training Act 2020 Section 73(2)﻿(jc) inserted 1 July 2008 section 57(3) Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 Section 73(2)﻿(jc) amended 1 August 2020 section 668 Education and Training Act 2020 Section 73(2)﻿(jd) inserted 7 September 2010 section 195(3) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 73(2)﻿(jd)﻿(i) amended 7 August 2020 section 135 Public Service Act 2020 Section 73(2)﻿(k) inserted 10 April 1995 Estate and Gift Duties Amendment Act 1995 Section 73(2)﻿(ka) inserted 1 July 2003 section 262 Local Government Act 2002 Section 73(2)﻿(kb) inserted 7 September 2010 section 195(4) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 73(2)﻿(l) inserted 1 July 1996 section 18 New Zealand Antarctic Institute Act 1996 Section 73(2)﻿(l) amended 19 December 2007 section 269(1) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 73(2)﻿(m) replaced 1 April 2008 section 269(2) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 73(2)﻿(m) amended 19 December 2007 section 269(3) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 73(2)﻿(n) replaced 1 April 2008 section 269(4) Taxation (Business Taxation and Remedial Matters) Act 2007 Section 73(2)﻿(n) amended 7 September 2010 section 195(5) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 73(2)﻿(o) inserted 7 September 2010 section 195(5) Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 Section 73(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
73B: Exemption for certain gifts of trading stock
A gift by a person to a person who is not an associated person under the Income Tax Act 2007
a: of trading stock as defined in section EB 2
b: made for the purpose of relief from the adverse effects of a Canterbury earthquake, as defined in section 4
c: made within the period beginning on 4 September 2010 and ending on 31 March 2012. Section 73B inserted 24 May 2011 section 13 Taxation (Canterbury Earthquake Measures) Act 2011
74: Exemption for certain elections by members of group superannuation schemes
Where a member of or a participant in any group superannuation scheme makes an election to accept from the group superannuation scheme a reduced retirement allowance or pension in consideration of the payment—
a: after his or her death, of a pension from the group superannuation scheme to the surviving spouse , civil union partner, de facto partner,
b: commencing before his or her death, of a pension from the group superannuation scheme to the spouse , civil union partner or de facto partner the election shall not constitute a dutiable gift. Section 74 replaced 13 March 1992 section 2(1) of the Estate and Gift Duties Amendment Act 1992 Section 74(a) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 74(a) amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005 Section 74(b) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005
74A: Exemption for gifts between members of consolidated group
No gift shall constitute a dutiable gift where the donor and the donee are, at the time the gift is made, members of the same consolidated group within the meaning of the consolidation rules of the Income Tax Act 2007 Section 74A inserted 14 December 1992 Estate and Gift Duties Amendment Act (No 2) 1992 Section 74A amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 74A amended 1 April 1995 Income Tax Act 1994
74B: Exemption for dividends
No payment, distribution, or transaction (whether in money or money's worth) made by a donor being a company, unit trust, or group investment fund (as each of those terms are defined in the Income Tax Act 2007 that Act, or would constitute such a dividend but for the application of section CD 27 Section 74B inserted 14 December 1992 Estate and Gift Duties Amendment Act (No 2) 1992 Section 74B amended 1 April 2008 section ZA 2(1) Income Tax Act 2007
74C: Exemption for gifts in respect of amalgamating companies
1: No gift shall constitute a dutiable gift where the donor is an amalgamating company (as defined in section YA 1
2: No gift shall constitute a dutiable gift where the donor is a shareholder in an amalgamating company, the donee is the amalgamated company or a company which directly or indirectly wholly owns the amalgamated company, the gift occurs as part of the amalgamation, and the amalgamation occurs under section 222 Section 74C inserted 14 September 1994 Estate and Gift Duties Amendment Act 1994 Section 74C(1) amended 1 April 2008 Income Tax Act 2007 Section 74C(2) amended 5 December 2013 section 14 Companies Amendment Act 2013
74D: Exemption for gifts in respect of distribution by co-operative company or company owned by co-operative company
No gift shall constitute a dutiable gift if the donor is a co-operative company or a company owned by a co-operative company, the donee is a member of the co-operative company, and the gift is an amount of a distribution that is excluded from being a dividend by section CD 34 Section 74D inserted 3 April 2006 section 299 Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 Section 74D amended 1 April 2008 Income Tax Act 2007
75: Exemption for certain payments by employers
1 The following classes of payments, to the extent that they are gifts, shall not constitute dutiable gifts:
a: contributions to a group superannuation scheme by an employer in respect of his or her employees or any class or classes of his or her employees:
b: payments made by an employer to an employee in consequence of the retirement of that employee from the service of the employer, and any gratuity or bonus paid by an employer to an employee during the continuance of the employment in recognition of special or faithful services rendered, if—
i: the employer is a body corporate other than an incorporated company; or
ii: the employer is an incorporated company and the Commissioner is satisfied that more than 50% of the issued shares (measured by reference to their available subscribed capital (as defined in section YA 1 , civil union partner or de facto partner
iii: the employer is an unincorporated firm or an individual, and the Commissioner is satisfied that the employee is not a relative of or within the second degree of relationship or a spouse , civil union partner or de facto partner
c: payments made by an employer to the widow or the widower or the surviving civil union partner or de facto partner
i: the employer is a body corporate other than an incorporated company; or
ii: the employer is an incorporated company and the Commissioner is satisfied that more than 50% of the issued shares (measured by reference to their available subscribed capital (as defined in section YA 1 or the widower or the surviving civil union partner or de facto partner or the surviving civil union partner or de facto partner or civil union partner or de facto partner
iii: the employer is an unincorporated firm or an individual, and the Commissioner is satisfied that the widow or widower or surviving civil union partner or de facto partner or civil union partner or de facto partner
d:
e: any payment made by an employer to the extent to which it is allowed as a deduction section DC 1 Income Tax Act 2007
2: Any issue or sale of shares under a share purchase scheme as defined in section YA 1 1954 No 67 s 129(6) s 47(b), (c), (d) s 14 s 3 Section 75(1) amended 2 August 1974 Estate and Gift Duties Amendment Act (No 2) 1974 Section 75(1)﻿(b)﻿(ii) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75(1)﻿(b)﻿(ii) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(b)﻿(ii) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 75(1)﻿(b)﻿(ii) amended 14 September 1994 Estate and Gift Duties Amendment Act 1994 Section 75(1)﻿(b)﻿(iii) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c) amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c) amended 25 November 1977 Estate and Gift Duties Amendment Act 1977 Section 75(1)﻿(c)﻿(ii) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75(1)﻿(c)﻿(ii) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c)﻿(ii) amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c)﻿(ii) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 75(1)﻿(c)﻿(ii) amended 14 September 1994 Estate and Gift Duties Amendment Act 1994 Section 75(1)﻿(c)﻿(ii) amended 25 November 1977 Estate and Gift Duties Amendment Act 1977 Section 75(1)﻿(c)﻿(iii) amended 1 April 2007 section 3(2) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c)﻿(iii) amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005 Section 75(1)﻿(c)﻿(iii) amended 25 November 1977 Estate and Gift Duties Amendment Act 1977 Section 75(1)﻿(d) repealed 1 April 2005 section YA 2 Income Tax Act 2004 Section 75(1)﻿(e) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75(1)﻿(e) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 75(1)﻿(e) amended 26 July 1996 Taxation (Core Provisions) Act 1996 Section 75(2) inserted 2 August 1974 Estate and Gift Duties Amendment Act (No 2) 1974 Section 75(2) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75(2) amended 1 April 2005 section YA 2 Income Tax Act 2004
75A: Exemption for certain dispositions of relationship property
1: In this section,— agreement Part 6 child of the civil union section 2 child of the de facto relationship section 2 child of the marriage section 2 de facto partner section 2 disposition of relationship property relationship property section 2
2: If, immediately after a disposition of relationship property is made to a party to an agreement, the value of all legal and equitable interests of that party in the relationship property of both parties to the agreement does not exceed 50% of the total value of that relationship property, the disposition of relationship property does not constitute a gift.
3: If, immediately after and as a result of a disposition of relationship property to a party to an agreement, the value of all legal and equitable interests of that party in the relationship property of both parties to the agreement exceeds 50% of the total value of that relationship property, the amount of the value of the relationship property so disposed of that, on such disposal, would have increased the value of all those interests of that party to no more than 50% of the total value of the relationship property of both parties to the agreement does not constitute a gift.
4: For the purposes of subsection (2) or subsection (3)
a: if the disposition is made within 3 months after the date of execution of the agreement, the date of execution:
b: if the disposition is made later than 3 months after the date of execution, the date of disposition.
5: Any disposition of property by or under an order of the court under section 25 , civil union partner , civil union partner civil union or de facto relationship
6: If any disposition of relationship property is made by or under an agreement, a copy of that agreement must be delivered to the Commissioner within 3 months after the date of disposition of that property and, for this purpose, even though no gift may have been made exceeding $12,000 in value, the provisions of sections 79 80 95
a: the agreement were a gift statement; and
b: the party to the agreement making any disposition of property by or under the agreement were a donor; and
c: the party to the agreement to whom the disposition is made were a donee.
7: The application of this section is affected by—
a: section 7(2)
b: section 3(2) Section 75A replaced 1 August 2001 section 64(2) Property (Relationships) Amendment Act 2001 Section 75A(1) child of the civil union inserted 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005 Section 75A(5) amended 26 April 2005 section 3(1) Estate and Gift Duties Amendment Act 2005 Section 75A(6) amended 17 October 2002 section 108(1) Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002
75B: Exemption for base price adjustment under
financial arrangements rules in Income Tax Act 2007
1: For the purposes of this section,—
a: financial arrangements rules section YA 1
b: dividend
c: financial arrangement section EW 3(3)﻿(a) or (b) that Act
2: The forgiveness or remission of a liability, in whole or in part, under a financial arrangement is not a gift under this Act if and to the extent that the forgiveness or remission must be taken into account under the financial arrangements
a: reduces the deduction that the person is allowed; or
b: increases the person's
3: If and to the extent that a transaction is a dividend, the transaction is not a gift under this Act. Section 75B replaced 20 May 1999 section 118(1) Taxation (Accrual Rules and Other Remedial Matters) Act 1999 Section 75B heading amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75B heading amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 75B(1) replaced 1 April 2005 section YA 2 Income Tax Act 2004 Section 75B(1)﻿(a) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75B(1)﻿(c) amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 75B(2) amended 1 April 2005 section YA 2 Income Tax Act 2004 Section 75B(2)﻿(a) replaced 1 April 2005 section YA 2 Income Tax Act 2004 Section 75B(2)﻿(b) amended 1 April 2005 section YA 2 Income Tax Act 2004
75BA: Exemption for gifts of financial arrangements under accrual rules in Income Tax Act 1994 (Part EH, Division 2)
Section 75BA repealed 24 October 2001 section 243(1) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
75BB: Exemption for gifts of financial arrangements under accruals rules in Income Tax Act 1994 (Part EH, Division 1)
Section 75BB repealed 24 October 2001 section 244(1) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
75BC: Exemption for gifts of financial arrangements under accruals rules in Income Tax Act 1976
Section 75BC repealed 24 October 2001 section 245(1) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
75C: Exemption for certain dispositions of property under Waikato Electricity Authority Act 1988
Any disposition of property made on or after 1 April 1989—
a: pursuant to section 23 or section 24 of the Waikato Electricity Authority Act 1988; or
b: to Waikato Electricity Limited pursuant to section 21 of that Act shall not constitute a dutiable gift. Section 75C inserted 28 March 1990 Estate and Gift Duties Amendment Act 1990 Section 75C(b) replaced 28 June 1990 Waikato Electricity Authority Amendment Act 1990
75D: Exemption for dispositions by raspberry industry entities
1: This section applies upon the making of regulations to dissolve the New Zealand Raspberry Marketing Council, the Raspberry Marketing Export Authority and the District Raspberry Marketing Committees established under the Raspberry Marketing Regulations 1979
2: In this section, current grower district committee grower Raspberry Marketing Authorities (Dissolution) Regulations 1999
3: When the Raspberry Marketing Authorities (Dissolution) Regulations 1999
4: When the Cold Storage Nelson Limited shares owned by the Nelson Raspberry Marketing Committee vest in Rubus Investments Nelson Limited, the vesting does not constitute a dutiable gift to Rubus Investments Nelson Limited. Section 75D inserted 8 September 1999 section 82(1) Taxation (Remedial Matters) Act 1999 Reliefs
76: Relief for subsequent gift of reserved benefit
When the donor of a dutiable gift to which section 70 (a ÷ b) × c where— a is the value of that benefit or advantage comprised in that subsequent gift, either at the date of the gift, or at the date of the original gift, whichever is the less; and b is the value of the original gift; and c is the amount of gift duty paid on the original gift. 1955 No 105 s 55
77: Relief for gift duty paid outside New Zealand
1: Where any dutiable gift is subject to gift duty under the law of any country outside New Zealand, and the Commissioner is satisfied that the law of that country makes provision for a rebate of gift duty similar to the provision contained in this section, the Commissioner shall, in respect of that dutiable gift, allow a rebate of one-half of the gift duty otherwise payable under this Act or under the law of that country, whichever is the less.
2: In any case to which subsection (1) applies, any penalty on gift duty and interest on gift duty payable in respect of the dutiable gift shall be calculated as if the amount of gift duty allowed as a rebate had been paid on the date on which gift duty first became payable in respect of the gift. 1955 No 105 s 67
6: Assessment and collection of gift duty
78: Instrument presented for stamping may be impounded
If an instrument is presented to the Commissioner 1955 No 105 s 60 Section 78 amended 20 May 1999 section 7 Stamp Duty Abolition Act 1999
79: Gift statement to be delivered to Commissioner by donor
1: Every donor shall deliver to the Commissioner, within 3 months after the making of any gift the value of which exceeds $12,000 $12,000
2: If the gift has been created or is evidenced by any written instrument, the donor shall deliver to the Commissioner, together with the gift statement, the said instrument or a copy thereof verified to the satisfaction of the Commissioner as a true copy. 1955 No 105 s 59(1), (2) 1964 No 74 s 7(1) Section 79(1) amended 1 April 1984 section 8(1) Estate and Gift Duties Amendment Act 1983
80: Donee to deliver gift statement in default of donor
1: If the donor of any gift the value of which exceeds $12,000 subsection (1) of section 79
2: Where any donee, or any trustee of any donee, delivers the gift statement and the donor does not avail himself or herself of his or her rights of objection under Part 7 1955 No 105 s 61 s 7(2) Section 80(1) amended 1 April 1984 section 8(2) Estate and Gift Duties Amendment Act 1983
81: High Court Section 47 1955 No 105 s 71 Section 81 amended 1 April 1980 section 12 Judicature Amendment Act 1979
82: Assessment of gift duty
1: On the delivery of the gift statement, the Commissioner shall assess the gift duty payable.
2: If the donor fails to deliver the gift statement within the time limited by subsection (1) of section 79
3: Notwithstanding any assessment or payment of gift duty, or any notice by the Commissioner that no gift duty is payable, the Commissioner may at any time and from time to time thereafter, if for any reason whatever the gift duty has not been correctly assessed, make an assessment or amend the assessment of gift duty.
4: As soon as conveniently may be after an assessment or amended assessment has been made, the Commissioner shall give notice of his or her assessment or amended assessment to the person who delivered the gift statement, or, in the case of an assessment under subsection (2) or any amendment to such an assessment, to the appropriate person.
5: If the Commissioner is of the opinion that no gift duty is payable, he or she shall give notice accordingly to the person to whom an assessment would be required to be given under subsection (4).
6: The Commissioner may assess by way of composition the gift duty the Commissioner considers is proper in the circumstances if it is difficult, impracticable, or would cause undue delay or expense to determine the exact amount of gift duty payable because of complex or uncertain facts, or any other cause.
6A: The Commissioner may accept payment of the sum assessed by way of composition in full discharge of all claims for that duty.
6B: A composition is not a good discharge from duty if it has been procured by fraud or by failure to disclose material facts.
7: Except as provided by Part 8A
a: no assessment or amended assessment of gift duty, penalty on gift duty, or interest on gift duty shall be disputed in any court or in any proceedings (including proceedings before a Taxation Review Authority); and
b: every assessment or amended assessment referred to in paragraph (a) shall be final and conclusive in favour of the Crown. 1955 No 105 ss 59(1), 65, 73, 78(1) Section 82(6) replaced 24 May 1999 section 9 Estate Duty Repeal Act 1999 Section 82(6A) inserted 24 May 1999 section 9 Estate Duty Repeal Act 1999 Section 82(6B) inserted 24 May 1999 section 9 Estate Duty Repeal Act 1999 Section 82(7) replaced 1 October 1996 section 3 Estate and Gift Duties Amendment Act 1996
83: Penalty on unpaid gift duty
1: A penalty on gift duty is payable in respect of any gift duty that is not paid within 6 months after the making of the dutiable gift.
2: For the purposes of sections 78 86 87 1955 No 105 s 64 Section 83(1) replaced 26 July 1996 section 4 Estate and Gift Duties Amendment Act 1996
84: Interest on unpaid gift duty
1:
2:
3: For the purposes of sections 78 86 87 Section 84(1) repealed 26 July 1996 section 5 Estate and Gift Duties Amendment Act 1996 Section 84(2) repealed 26 July 1996 section 5 Estate and Gift Duties Amendment Act 1996
85: When gift duty payable
1: Gift duty shall be payable on the making of a dutiable gift
2: Where a dutiable gift first becomes liable to gift duty by reason of the making of a subsequent dutiable gift, the gift duty on the first dutiable gift shall be payable immediately upon the making of the subsequent gift, and all references in this Part to the date of the making of the dutiable gift shall, so far as may be necessary in their application to any dutiable gift so becoming liable to gift duty, be construed as references to the date on which the dutiable gift has become liable to gift duty.
3: Where a dutiable gift subject to gift duty subsequently becomes liable to a greater amount of gift duty by reason of the making of a subsequent dutiable gift, the additional gift duty on the first dutiable gift shall be payable immediately upon the making of the subsequent dutiable gift, and all references in this Part to the date of the making of the dutiable gift shall, so far as may be necessary in their application to the payment of the additional gift duty, be construed as references to the date on which the dutiable gift has become liable to a greater amount of gift duty. 1955 No 105 s 50(4)–(7) Section 85(1) amended 16 October 1971 Estate and Gift Duties Amendment Act 1971
86: By whom gift duty payable
1: Gift duty shall constitute a debt due and payable to the Crown by the donor.
2: Without excluding the liability of the donor, gift duty shall also constitute a debt due and payable to the Crown by the donee, or, where there is more than 1 donee under the same dutiable gift, by each of the donees in proportion to the value of his or her interest in the dutiable gift: provided that, where the interest of a donee is a future interest, he or she shall not become personally liable until it becomes an interest in possession.
3: Where a gift has been made by way of trust for any donee, the gift duty shall, without excluding the liability of the donor or the donee, also constitute a debt due and payable to the Crown by the trustee in his or her capacity as trustee.
4: Unless it is otherwise provided by the terms of the gift, the donee and trustee shall each be entitled to be indemnified by the donor against all liability under this section. 1955 No 105 ss 56(1), 57, 58
87: Gift duty to be a charge on the property comprised in the gift
1: Gift duty shall constitute a charge on all property comprised in the dutiable gift.
2: Unless it is otherwise provided by the terms of the gift, a donee shall be entitled to be indemnified by the donor against the operation of any such charge.
3: No such charge shall prevail against the title of a purchaser for value and in good faith without actual notice of the existence of the charge.
4: 1955 No 105 ss 56(2)–(4), 82, 83 Section 87(4) repealed 24 May 1999 section 10 Estate Duty Repeal Act 1999
87A: Registration of charge for gift duty
1: If gift duty constitutes a charge on land or an interest in land that is subject to the Land Transfer Act 2017 Deeds Registration Act 1908 Mining Act 1971 record of title
a: in the case of land subject to the Land Transfer Act 2017 Land Transfer Act 2017 Mining Tenures Registration Act 1962 Registrar-General of Land
b: in the case of any other mining privilege, lease or licence, the Mining Registrar in whose office the mining privilege, lease or licence is registered:
c: in the case of land subject to the Deeds Registration Act 1908
2: If subsection (1) applies, the appropriate Registrar must, without payment of a fee, register the certificate against the title to the land, or privilege, lease or licence so charged.
3: Registration of the certificate is treated as being actual notice to all persons that the charge exists, and the charge operates and has priority on and after the date of registration.
4: When a charge has been satisfied, the Commissioner must deposit a release of the charge with the appropriate Registrar and the Registrar must, without payment of a fee, register the release against the title to the land, or privilege, lease or licence. Section 87A inserted 24 May 1999 section 11 Estate Duty Repeal Act 1999 Section 87A(1) amended 12 November 2018 section 250 Land Transfer Act 2017 Section 87A(1)﻿(a) amended 12 November 2018 section 250 Land Transfer Act 2017
87B: Enforcement of charge for gift duty by High Court
1: If gift duty constitutes a charge on property, the High Court may on application by the Commissioner make such order as it thinks fit, either for—
a: the payment of all or part of the property to the Commissioner; or
b: the sale or realisation of all or part of the property and the payment of the proceeds to the Commissioner, or
c: the appointment of a receiver of the rents, profits or income from the property and the payment of the rents, profits or income to the Commissioner.
2: An order made under subsection (1) applies to the extent that it is necessary to meet the duty and the costs of the Commissioner.
3: If property has been sold under a High Court order, the High Court may, on the application of the purchaser or the Commissioner, make an order vesting the property in the purchaser.
4: A vesting order made by the High Court has the same effect as if all persons entitled to the property had been free from disability and had executed all proper conveyances, transfers and assignments of the property specified in the order and, in the case of land, an interest in land or a mining privilege, lease or licence under the Mining Act 1971 Land Transfer Act 2017 Deeds Registration Act 1908 Mining Act 1971 Section 87B inserted 24 May 1999 section 11 Estate Duty Repeal Act 1999 Section 87B(4) amended 12 November 2018 section 250 Land Transfer Act 2017
88: Remission of penalty and interest on gift duty
Section 88 repealed 1 April 1997 section 6(1) Estate and Gift Duties Amendment Act 1996
89: Refund of gift duty, penalty, and interest paid in excess
1: Subject to subsection (2), where, at any time within 8 years after the date of payment, or if application for the refund is made in writing within that period, the Commissioner is satisfied that gift duty, penalty on gift duty, or interest on gift duty has been paid in excess, whether as a result of any remission under Part 11
2: Where gift duty has been reassessed under section 68G computed and payable in accordance with Part 7
3: All money payable under this Act by way of refund of gift duty, penalty on gift duty, or interest on gift duty shall be paid out of a Crown Bank Account
4: A refund made under this section must be made in accordance with the requirements of section 184A 1955 No 105 ss 52, 80(1), 81 Section 89(1) amended 26 July 1996 section 7(a) Estate and Gift Duties Amendment Act 1996 Section 89(2) amended 24 May 1999 section 12 Estate Duty Repeal Act 1999 Section 89(2) amended 26 July 1996 section 7(b) Estate and Gift Duties Amendment Act 1996 Section 89(3) amended 25 January 2005 section 65R(3) Public Finance Act 1989 Section 89(4) inserted 7 October 1998 section 77(1) Taxation (Simplification and Other Remedial Matters) Act 1998
7: Objections
Part 7 repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
90: Objections to assessments
Section 90 repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
90A: Application of Parts 4A and 8A of Tax Administration Act 1994
1: Parts 4A 8A amended assessment
2: Subsection (1) does not apply to any notice of amended assessment amended assessment Section 90A inserted 1 October 1996 section 9 Estate and Gift Duties Amendment Act 1996 Section 90A(1) amended section 246(1) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 Section 90A(2) amended section 246(1) Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001
91: Commissioner may alter assessment, or objection may be submitted to Taxation Review Authority
Section 91 repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
92: When objection may be referred in first instance to High Court
Section 92 repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
92A: Test case procedure
Section 92A repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
93: Removal of case into Court of Appeal
Section 93 repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
94: Objections to special valuations of land
Section 94 repealed 1 October 1996 section 8(1) Estate and Gift Duties Amendment Act 1996
8: Miscellaneous provisions
95: Application of Part 9 of Tax Administration Act 1994
Part 9 1 April 1997 Section 95 replaced 26 July 1996 section 10 Estate and Gift Duties Amendment Act 1996 Section 95 amended 23 September 1997 section 119(2) Taxation (Remedial Provisions) Act 1997
96: Giving of notices
Section 96 repealed 1 April 1981 Inland Revenue Department Amendment Act 1980
97: Duty recoverable by Commissioner in official name
Section 97 repealed 26 July 1996 section 11 Estate and Gift Duties Amendment Act 1996
98: Commissioner may destroy records after
15 At any time after the expiration of 15 1955 No 105 s 85 Section 98 amended 19 December 1989 Estate and Gift Duties Amendment Act (No 2) 1989 Section 98 amended 19 December 1989 Estate and Gift Duties Amendment Act (No 2) 1989
99: Consequential amendments
The enactments specified in Schedule 4
100: Repeals, revocations, and savings
1: The enactments specified in Schedule 5
2: The following regulations are hereby revoked:
a: regulations under the Death Duties Act 1921 made by Order in Council on 28 April 1926 and published in the Gazette
b: the Death Duties Amending Regulations 1954.
3: The provisions hereby repealed or revoked, so far as they relate to estate duty, shall continue to apply to the estates of all persons who have died before the commencement of this Act, and so far as they relate to gift duty shall continue to apply to all gifts made before the commencement of this Act.
4: Notwithstanding the repeal by this Act of the Estate and Gift Duties Amendment Act 1961, subsection (3) of section 6 of the last-mentioned Act shall continue to apply, as if it had continued in force, with respect to payments to which it applied immediately before the commencement of this Act.
5: In ascertaining the rate of gift duty in respect of a gift made before 19 July 1968 (being the date of the commencement of the Estate and Gift Duties Amendment Act 1968
6: All references in any enactment or in any deed, agreement, instrument, notice, or other document whatever to death duty or to death duties shall, in relation to the estate of a person dying after the commencement of this Act and unless the context otherwise requires, be deemed to be references to estate duty under this Act.
101: Transitional provisions
1: Section 10
2: Notwithstanding the provisions of paragraph (a) of subsection (1) of section 42
a: the dutiable gift in respect of which the gift duty was paid was made before the commencement of this Act; and
b: the property comprised in the dutiable gift is included in the dutiable estate of the deceased under section 10 the gift duty refunded under that paragraph shall not be included in the dutiable estate of the donor.
3: Notwithstanding anything in section 14 paragraph (f) of subsection (1) of section 5 of the Estate and Gift Duties Act 1955