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Income Tax Act 2007

Deductions - Terminating provisions

DZ 10: General insurance with risk period straddling 1 July 1993

You could also call this:

“Insurance claims for policies spanning 1 July 1993 limited to events after that date”

If you run an insurance company that offers general insurance or guarantees against loss, damage, or risk, this rule might affect you. It applies if your company was doing this business just before and on 1 July 1993, and if you signed an insurance contract outside New Zealand that covers a time period starting before 1 July 1993 and ending after that date.

Here’s what you need to know: You can’t claim a deduction for any amount you have to pay under that contract unless the event that caused the payment happened on or after 1 July 1993. This rule is very strict and overrides the general permission for deductions.

This rule is part of the Income Tax Act 2007 and falls under the ‘Deductions’ section. It’s specifically about general insurance with a risk period that crosses over the 1 July 1993 date.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514232.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Banking and loans
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Part D Deductions
Terminating provisions

DZ 10General insurance with risk period straddling 1 July 1993

  1. This section applies when—

  2. a company carries on a business of providing general insurance or guarantees against loss, damage, or risk, immediately before and on 1 July 1993; and
    1. the company, as insurer, enters into an insurance contract for the general insurance in the course of carrying on the business outside New Zealand; and
      1. the contract covers a period of risk starting before 1 July 1993 and ending after 1 July 1993.

        1. The company is denied a deduction for an amount payable under the contract unless the event giving rise to the payment occurs on or after 1 July 1993.

        2. This section overrides the general permission.

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