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Telecommunications Act 2001

Structural separation of Telecom - Taxation consequences of structural separation

69XN: Purpose

You could also call this:

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

Illustration for Telecommunications Act 2001

The purpose of this part of the law is to make sure that when certain assets and liabilities are transferred to Chorus, it does not create tax problems for Telecom or Chorus that would not have happened if they were the same company. You need to know that this law is trying to avoid tax issues when Telecom's assets and liabilities are given to Chorus. This is also meant to ensure that shareholders of Telecom Corporation of New Zealand Limited or Chorus do not face tax consequences on the day the changes take effect that would not have happened if the transfer of assets and liabilities had not occurred, as explained under the Inland Revenue Acts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4187715.

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Part 2AStructural separation of Telecom
Taxation consequences of structural separation

69XNPurpose

  1. The purpose of this subpart is to ensure that—

  2. the vesting of the designated assets and liabilities in Chorus does not give rise to tax consequences under the Inland Revenue Acts for Telecom or Chorus that would not have arisen if they were the same person:
    1. no tax consequences arise under the Inland Revenue Acts on the appointed day for any shareholder of Telecom Corporation of New Zealand Limited or Chorus from the demerger distribution that would not have arisen if the vesting of the designated assets and liabilities and the demerger distribution had not occurred.

      Notes
      • Section 69XN: 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).