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EK 15: Transfer on application
or “How to transfer money from your environmental restoration account to someone else”
You could also call this:

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

If you have an environmental restoration account and you die, go bankrupt, or your company is liquidated, this is what happens:

The person in charge of your estate, the Official Assignee, or your liquidator needs to tell the Commissioner if your environmental restoration obligation has been given to someone else. If this happens, the Commissioner will move the money from your account to the new person’s environmental restoration account.

The amount moved will be what’s in your account on the day you died, went bankrupt, or your company was liquidated. But there’s another rule in Section EK 17 that might change this amount.

When the money is moved to the new person’s account, it’s treated as if they paid it into their own account. The amount moved is counted as income for you on the day before the transfer amount is worked out. This income is covered under section CB 28 of the Income Tax Act 2007.

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Next up: EK 17: Minimum refund or transfer

or “Minimum amount for refunds or transfers from environmental restoration accounts”
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Part E Timing and quantifying rules
Environmental restoration accounts

EK 16Transfer on death, bankruptcy, or liquidation

  1. This section applies when a person—

  2. has an environmental restoration account; and
    1. does 1 of the following:
      1. dies:
        1. becomes bankrupt:
          1. is put into liquidation.

          2. Subsection (3) applies if the Commissioner is notified, by the administrator of the person’s estate, the Official Assignee, or the person’s liquidator, that the obligation to which the balance in the person’s environmental restoration account relates has been transferred to another person.

          3. The Commissioner must transfer the amount referred to in subsection (4) to an environmental restoration account of the person to whom the obligation has been transferred.

          4. The Commissioner must transfer under subsection (3) the amount that is in the person’s environmental restoration account on the date on which—

          5. the person dies, if subsection (1)(b)(i) applies:
            1. the person becomes bankrupt, if subsection (1)(b)(ii) applies:
              1. the person is put into liquidation, if subsection (1)(b)(iii) applies.

                1. Section EK 17 overrides subsection (4).

                2. A transfer to the environmental account of a person under subsection (3) is treated as a payment by the person to their environmental account.

                3. The amount of a transfer under this section is income, under section CB 28 (Environmental restoration accounts), derived by the person on the day before the day on which the amount of the transfer is determined under subsection (4).

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                Notes
                • Section EK 16(2): amended, on , by section 34(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section EK 16 list of defined terms notify: inserted, on , by section 34(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).