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CC 12: Lessor acquiring lease asset on expiry of term of lease
or “Owner's income from reselling or re-leasing an item after a finance lease ends”
You could also call this:

“Handling payments made after a hire purchase agreement has ended”

If you have a hire purchase agreement, sometimes you might pay money after the agreement has ended. This law explains what happens with that money.

When you (the buyer) pay money after the agreement has ended, the person who sold you the item (the seller) gets to count that money as income in the year they receive it.

If the seller has to pay you (the buyer) some money back, as mentioned in section FA 18(3)(b), you get to count that money as income in the year you receive it.

This law is used to help understand section FA 18, which talks about how to handle money paid after a hire purchase agreement has finished.

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Next up: CC 14: NZ IFRS 16 leases

or “Calculating income from IFRS leases”
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Part C Income
Income from holding property (excluding equity)

CC 13Amounts paid in income years after hire purchase agreement ends

  1. This section applies for the purposes of section FA 18 (Treatment of amounts paid in income years after agreement ends), when an amount that is liable to be paid under a hire purchase agreement is paid in an income year that is later than the income year in which the agreement ends.

  2. An amount that the buyer is liable to pay under the terms of the agreement is income of the seller in the income year in which they receive it.

  3. An amount paid by the seller to the buyer under section FA 18(3)(b) is income of the buyer in the income year in which the amount is paid.

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