Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from holding property (excluding equity)

CC 3: Financial arrangements

You could also call this:

“Income from financial arrangements and debt forgiveness for trustees”

If you’re part of a financial arrangement, you might get some income from it. The law says that if you’re treated as getting income from the financial arrangement under the financial arrangements rules, then that amount is your income.

If you’re a trustee, there’s a special rule for you. If someone forgives a debt that you owe as a trustee, you might get income from that. The law has a specific section that explains when this happens.

Remember, these rules are part of the Income Tax Act 2007, which is a New Zealand law about income tax. If you want to know more about the financial arrangements rules or the special rule for trustees, you can look at the other parts of the law that are mentioned.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512512.

Topics:
Money and consumer rights > Taxes
Previous

CC 2: Non-compliance with covenant for repair, or

“Money received when tenant breaches repair agreement”

Next

CC 4: Payments of interest, or

“How interest earnings and related income are treated for tax purposes”

Part C Income
Income from holding property (excluding equity)

CC 3Financial arrangements

  1. If a person who is a party to a financial arrangement is treated as deriving an amount of income under the financial arrangement under subpart EW (Financial arrangements rules), the amount is income of the person.

  2. Income derived by a trustee in the circumstances described in section EW 50 (Income when debt forgiven to trustee) is income of the trustee.

Compare