Part C
Income
Exempt income
CW 6Payments of interest: farm mortgages
Fifty percent of the interest that a person derives from a mortgage securing a loan made by a seller of a farm is exempt income, if—
- the Rural Banking and Finance Corporation of New Zealand approves the mortgage; and
- the Corporation gives the Commissioner notice of the approval and each variation.
This section does not apply if the person is—
- an absentee; or
- a company; or
- a Maori authority; or
- a public authority; or
- a trustee liable for income tax under subpart HC (Trusts) and section HZ 2 (Trusts that may become complying trusts); or
- an unincorporated body.
A person who derives interest that is exempt income under this section is not entitled to a tax credit for the interest under sections LZ 6 to LZ 8 (which relate to interest on home vendor mortgages).
Compare
- 2004 No 35 s CW 6