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CW 2: Forestry encouragement agreements
or “Tax exemptions for forestry agreements”
You could also call this:

“Tax-free interest on special loans from forestry and Māori investment companies”

When a forestry company or a Maori investment company gives out a special type of loan called a qualifying debenture, some special rules apply. If you receive interest from this qualifying debenture, you don’t have to pay tax on it if the company pays you the interest by giving you another qualifying debenture instead of money. This means you can earn interest without paying tax on it, as long as you’re getting more of these special loans instead of cash.

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Next up: CW 3B: Pre-1990 forest land units: emissions trading scheme

or “This section about pre-1990 forest land units in the emissions trading scheme has been removed”
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Part C Income
Exempt income

CW 3Forestry companies and Maori investment companies

  1. This section applies when a forestry company or a Maori investment company issues a qualifying debenture.

  2. Interest derived from the qualifying debenture is exempt income to the extent to which it is paid by the issue of a further qualifying debenture.

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