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Income Tax Act 2007

Timing and quantifying rules - Environmental restoration accounts

EK 15: Transfer on application

You could also call this:

“How to transfer money from your environmental restoration account to someone else”

When you apply to transfer money from your environmental restoration account to someone else, the Commissioner can make this transfer happen. This is possible if you’ve given that person the responsibilities related to the money, and if certain other rules don’t apply.

The Commissioner will move the money to the other person’s environmental restoration account. This transfer is treated as if the other person paid into their own account, but only if they can prove two things to the Commissioner. First, they need to show that they’ve taken on the responsibilities linked to the money. Second, they need to show that if the transfer hadn’t happened, they would have been allowed to put that amount of money into their own account anyway.

If the person you’ve chosen can’t prove these things, the Commissioner will move the money back to your account. It’ll be like the transfer to the other person never happened.

You can find more information about making an application for transfer in section EK 14. There are also other rules that might affect transfers in sections EK 9, EK 12, EK 16, and EK 19.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515200.

Topics:

Money and consumer rights > Taxes

Environment and resources > Conservation

EK 14: Application for transfer, or

“How to request a transfer from your environmental restoration account”

EK 16: Transfer on death, bankruptcy, or liquidation, or

“What happens to your environmental restoration account when you die, go bankrupt, or your company is liquidated”

Part E Timing and quantifying rules
Environmental restoration accounts

EK 15Transfer on application

This section applies when—
a person applies under section EK 14 for a transfer of some or all of the amount in their environmental restoration account to a person who is nominated in the application; and
the person has transferred to the nominated person the obligations to which the amount relates; and
none of sections EK 9, EK 12, EK 16, and EK 19 applies.

The Commissioner must make a transfer under this section to an environmental restoration account of the person nominated in the application.
A transfer under subsection (2) is treated as being a payment by the nominated person to the nominated person’s environmental restoration account if the nominated person satisfies the Commissioner that—
the obligations to which the transferred amount relates have been transferred to the nominated person; and
in the absence of the transfer, the nominated person would be entitled to make a payment, of the amount of the transfer, to the nominated person’s environmental restoration account.

If the nominated person does not meet the requirements of subsection (3) in relation to an amount, the Commissioner must transfer the amount to the environmental restoration account of the person who made the application under subsection (1)(a).
The transfer under subsection (4) is treated as taking place at the time of the original transfer under subsection (2).

Compare

2004 No 35 s EK 15

Notes

Section EK 15 heading: amended, on 2 June 2016, by section 33(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section EK 15(2) heading: amended, on 2 June 2016, by section 33(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
Section EK 15 list of defined terms apply: inserted, on 2 June 2016, by section 33(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).