Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
CD 1: Dividend
or “How dividends are treated as income and when they're counted for tax purposes”
You could also call this:

“Some co-operative company distributions are not counted as dividends”

If you are a member of a co-operative company, you might receive a distribution. This distribution is not considered a dividend if it falls under certain rules. These rules are explained in other parts of the law, specifically section CD 34B or section CZ 41. The second section talks about distributions to supplying shareholders of Fonterra for the 2022–23 to 2024–25 income years. Even though these distributions are not dividends, they are still counted as income for you.

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 It might be out of date or be missing some parts.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

Next up: CD 3: Meaning of dividend

or “What counts as a dividend for tax purposes”
Next

Part C Income
Income from equity

CD 2Distribution excluded from being dividend

  1. A distribution, derived by a member of a co-operative company, that is excluded by section CD 34B or CZ 41 (Distributions to supplying shareholders of Fonterra: 2022–23 to 2024–25 income years) from being a dividend is income of the member.

Compare
Notes
  • Section CD 2: amended (with effect on 1 July 2022), on , by section 13 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
  • Section CD 2: amended (with effect on 1 April 2010), on , by section 7 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).