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Telecommunications Act 2001

Structural separation of Telecom - Taxation consequences of structural separation

69XM: Interpretation in this subpart

You could also call this:

"What special words mean in this part of the law"

Illustration for Telecommunications Act 2001

In this part of the law, you need to know what some words mean. The 'appointed day' is a special day that is chosen for a particular purpose. You can find out what this purpose is by looking at a proposal that was approved by Order in Council made under section 46 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011. The 'Chorus company' refers to a group of companies that includes ChorusCo and its subsidiaries. The 'demerger distribution' is a distribution of shares or money to the holders of ordinary shares in Telecom Corporation of New Zealand Limited. This distribution is made according to the demerger arrangement and includes shares in ChorusCo or money from the sale of those shares. The 'designated assets and liabilities' are assets and liabilities that are specified in an Order in Council made under section 46 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011. The 'income year' has the same meaning as in the Income Tax Act 2007. The 'Inland Revenue Acts' has the same meaning as in the Tax Administration Act 1994. The 'Telecom company' refers to a group of companies that includes Telecom Corporation of New Zealand Limited and its subsidiaries. The word 'vest' means to transfer assets and liabilities from a Telecom company to a Chorus company on the appointed day. The 'vesting year' is the income year that includes the appointed day for the transfer of these assets and liabilities.

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"Protection for Telecom workers in the Government Superannuation Fund"

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69XN: Purpose, or

"This law helps prevent tax problems when assets are transferred from Telecom to Chorus."

Part 2AStructural separation of Telecom
Taxation consequences of structural separation

69XMInterpretation in this subpart

  1. In this subpart, unless the context requires otherwise,—

    appointed day means,—

    1. for a purpose specified in a proposal approved by Order in Council made under section 46 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011, a day specified in that proposal for that purpose:
      1. if there is no relevant day under paragraph (a), the day on which the vesting of the designated assets and liabilities, and the demerger distribution, take effect

        Chorus company means a member of the group of companies comprising ChorusCo and the companies that are, or will be, its subsidiaries immediately following the demerger distribution and the vesting of the designated assets and liabilities

          demerger distribution means a distribution, or an entitlement to a distribution, to each holder of ordinary shares in Telecom Corporation of New Zealand Limited, where the distribution or entitlement—

          1. arises under the demerger arrangement; and
            1. comprises—
              1. an amount determined by reference to the value of a holder's entitlement to ordinary shares in ChorusCo:
                1. ordinary shares in ChorusCo to which the holder is entitled, or proceeds from the disposal of that holder's entitlement to ordinary shares in ChorusCo

                designated assets and liabilities means assets and liabilities, or parts of assets and liabilities, as the case may be, specified in an Order in Council made under section 46 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011, and designated assets and designated liabilities have corresponding meanings

                  income year has the same meaning as in the Income Tax Act 2007

                    Inland Revenue Acts has the same meaning as in the Tax Administration Act 1994

                      Telecom company means a member of the group of companies comprising Telecom Corporation of New Zealand Limited and the companies that are, or will be, its subsidiaries immediately following the demerger distribution and the vesting of the designated assets and liabilities

                        vest means the transfer of the designated assets and liabilities from a Telecom company to a Chorus company on the appointed day

                          vesting year means the income year that includes the appointed day for the vesting of the designated assets and liabilities.

                          Notes
                          • Section 69XM: inserted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 51 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).