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Income Tax Act 2007

Income - Adjustments

CH 8: Market value substituted

You could also call this:

"When you don't get enough money, the law can still say you have income."

Illustration for Income Tax Act 2007

When the law says you have not received enough money, it can treat you as having income. This happens under section GC 8. You may also be treated as having income when you sell or lease something. You can be treated as having income when you sell trading stock under section GC 1 or lease a property under section GC 5. The law says this income is yours.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512864.

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Money and consumer rights > Taxes
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Part CIncome
Adjustments

CH 8Market value substituted

  1. An amount treated as income of a person under section GC 8 (Insufficient amount receivable by person) is income of the person.

  2. A person may be treated as deriving an amount—

  3. on disposal of trading stock under section GC 1 (Certain disposals of trading stock at below market value):
    1. on the lease of a property under section GC 5 (Leases for inadequate rent).

      Notes
      • Section CH 8(1): amended (with effect on 1 April 2008), on , by section 17(1) (and see section 17(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
      • Section CH 8(2)(a): amended, on , by section 17(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).