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Income Tax Act 2007

Income - Terminating provisions

CZ 18: Benefit provider approved within 6 months of 25 November 2003

You could also call this:

“Approval for benefit providers within six months of November 2003”

If you’re a provider of insurance or health benefits, this law might apply to you. You need to be either a company or a trustee, and you must give accident, health, life insurance, or other health benefits to people.

You also need to have been approved by the Commissioner in a specific way. This could be as a sickness, accident, or death benefit fund before 24 November 2003. Or, you might run a fund that was approved this way.

The Commissioner must have said you work on ‘principles of mutuality’ for the people you help. This approval had to happen within 6 months after 25 November 2003. If you didn’t know about this rule in time, you could ask for more time to get approved.

If all of this applies to you, some of the money you earn might be exempt from income tax. This is true if you don’t make the money from business outside of the people you help. The people you help must be beneficiaries of your trust, members of your organisation, members of a group that controls your organisation, or relatives of these people.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513541.

Topics:
Money and consumer rights > Taxes
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Part C Income
Terminating provisions

CZ 18Benefit provider approved within 6 months of 25 November 2003

  1. This section applies when a person (the provider)—

  2. is—
    1. an incorporated body; or
      1. a trustee; and
      2. provides accident insurance, health insurance, life insurance, or other health and welfare benefits to natural persons (the recipients); and
        1. either—
          1. was approved as a sickness, accident, or death benefit fund by the Commissioner on or before 24 November 2003; or
            1. administers a fund that was approved as a sickness, accident, or death benefit fund by the Commissioner on or before 24 November 2003; and
            2. has been approved by the Commissioner as an organisation that the Commissioner considers operates on the principles of mutuality for recipients—
              1. within the 6 months starting on 25 November 2003; or
                1. in a further period allowed by the Commissioner, if the provider satisfies the Commissioner that the provider was not aware of the requirement for the Commissioner’s approval in sufficient time to obtain the approval under subparagraph (i).

                2. An amount derived by a provider is exempt income if—

                3. the amount is not derived from a business carried on by the provider beyond the circle of the recipients; and
                  1. each of the recipients is—
                    1. a beneficiary of the trust for which the provider is the trustee:
                      1. a member of the provider:
                        1. a member of an organisation that directly or indirectly controls the provider:
                          1. a relative of a person described in any of subparagraphs (i) to (iii).

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