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Income Tax Act 2007

Income - Terminating provisions

CZ 1: Grandparented shares under employee share schemes

You could also call this:

"Special rules for shares you got from your job before new tax rules started"

When you get shares under an employee share scheme, this section might apply to you. You got the shares before a certain date, which is six months after the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 was approved, and you did not get them to avoid the new rules. You also got the shares before 1 April 2022, or before 12 May 2016.

The new rules about employee share schemes do not apply to these shares. Instead, the old rules that were in place before the new rules started apply to your shares. This means you follow the rules that were in place before the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 was approved.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513493.

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Part CIncome
Terminating provisions

CZ 1Grandparented shares under employee share schemes

  1. This section applies when, for shares under an employee share scheme,—

  2. the shares were granted or acquired under the employee share scheme before the date that is 6 months after the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 receives the Royal assent, and—
    1. the shares were granted or acquired for purposes not including the purpose of avoiding the future application of the employee share scheme provisions in that Act (the new ESS provisions); and
      1. the share scheme taxing date for the shares is before 1 April 2022:
      2. the shares were granted or acquired under the employee share scheme before 12 May 2016.

        1. The new ESS provisions do not apply for the shares. Instead, the provisions of this Act that would apply ignoring the enactment of the new ESS provisions apply for the shares.

        Notes
        • Section CZ 1: replaced, on , by section 42 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).