Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Terminating provisions

CZ 14: Treatment of superannuation fund interests in group investment funds on 1 April 1999

You could also call this:

“How superannuation funds' investments in group investment funds are taxed from 1 April 1999”

When you have money in a superannuation fund that’s invested in a group investment fund, there are some special rules that apply from 1 April 1999. Usually, when a company buys back its own shares, there are rules about how this is treated for tax purposes. However, for superannuation funds with investments in group investment funds, these rules don’t apply in the same way.

If you’re managing a group investment fund, you had a choice to make before 31 March 1999. You could decide if you wanted the usual rules about share buy-backs to apply to the superannuation funds investing in your group investment fund. If you chose this option, then from 1 April 1999, those rules would apply. But if you didn’t make this choice, then the usual rules about share buy-backs wouldn’t apply to the superannuation fund’s investment in your group investment fund.

This might sound complicated, but it’s really about making sure that superannuation funds are treated fairly when they invest in group investment funds. The government wanted to give fund managers a choice about how these investments would be handled for tax purposes.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513533.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
Previous

CZ 13: Treatment of units and interests in unit trusts and group investment funds on issue as at 1 April 1996, or

“How units and interests in certain investments were treated from 1 April 1996”

Next

CZ 15: Accident insurance contracts before 1 July 2000, or

“Rules for certain insurance payments made before July 2000”

Part C Income
Terminating provisions

CZ 14Treatment of superannuation fund interests in group investment funds on 1 April 1999

  1. This section applies when a superannuation fund has an interest in a group investment fund on 1 April 1999.

  2. Section CD 22(4) (Returns of capital: off-market share cancellations) does not apply to the interest.

  3. If a trustee of a group investment fund chose on or before 31 March 1999 to treat a superannuation fund interest in a group investment fund as subject to section CD 22(4),—

  4. subsection (2) does not apply to the interest:
    1. section CD 22(2) applies to the interest on and after 1 April 1999.

      Compare