Plain language law

New Zealand law explained for everyone

Telecommunications Act 2001

Structural separation of Telecom - Taxation consequences of structural separation

69XV: Vesting of designated assets and liabilities

You could also call this:

"Transferring assets to Chorus without paying extra taxes"

Illustration for Telecommunications Act 2001

When assets and liabilities are transferred to a Chorus company, you do not have to pay gift duty under the Estate and Gift Duties Act 1968. This transfer also does not count as income that you have to pay tax on under the Income Tax Act 2007, except in certain situations. You also cannot claim a tax deduction for this transfer, except in certain situations, under the Income Tax Act 2007.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4187738.

Topics:
Money and consumer rights > TaxesBusiness > Industry rules
Previous

69XU: Unpaid employment expenditure, or

"Money a company must pay when taking over staff payments from another company"

Next

69XW: Revenue account property, or

"What happens to a Telecom company's property when it splits into different parts?"

Part 2AStructural separation of Telecom
Taxation consequences of structural separation

69XVVesting of designated assets and liabilities

  1. The vesting of the designated assets and liabilities in a Chorus company—

  2. does not give rise to a dutiable gift for the purposes of the Estate and Gift Duties Act 1968:
    1. does not give rise to a dividend, or, except as provided in this subpart, other assessable income, for the purposes of the Income Tax Act 2007:
      1. does not, except as provided in this subpart, give rise to a deduction for the purposes of the Income Tax Act 2007.

        Notes
        • Section 69XV: 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).