Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Terminating provisions

CZ 19: Community trust receipts in 2004–05 or 2005–06 tax year

You could also call this:

“Income tax exemption for certain community trust receipts in 2004-05 or 2005-06”

If you’re a trustee or company, you might have some income that you don’t have to pay tax on. This is called exempt income. You can get this special treatment if you meet two conditions.

First, your income would normally be tax-free under the rules for charities. But you might have given money or property to a community trust when you were closing down your trust or company in the 2004-05 or 2005-06 tax year. Even though you did this, your income can still be tax-free.

Second, you need to meet one of these two requirements: either the community trust gave you the main part of your trust’s property, or the community trust owns all of your company.

If you meet both of these conditions, then your income is exempt, which means you don’t have to pay tax on it.

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 It might be out of date or be missing some parts.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=DLM1513545.

Topics:
Money and consumer rights > Taxes
Previous

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

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

Next

CZ 20: Disposal of personal property lease asset under specified lease, or

“Rules for selling or re-leasing property after a special lease ends”

Part C Income
Terminating provisions

CZ 19Community trust receipts in 2004–05 or 2005–06 tax year

  1. An amount of income derived by a trustee or company is exempt income if—

  2. the amount would be exempt income under section CW 41 (Charities: non-business income) or CW 42 (Charities: business income) but for the trustee or company making a dividend, distribution, or settlement to a community trust in the 2004–05 or 2005–06 tax year on the winding up of the trust or company; and
    1. either—
      1. the corpus of the trust was provided by the community trust; or
        1. the company is wholly owned by the community trust.

        Compare