Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Financial arrangements rules

EW 4: What is not a financial arrangement?

You could also call this:

“Items not considered financial arrangements include giving away rights and being released from obligations”

When you give away all or some of your rights under a financial arrangement or an excepted financial arrangement to someone else, this is not considered a financial arrangement. However, there’s an exception to this rule which you can find in section EW 3(3)(c).

If you’re legally released from some or all of your responsibilities under a financial arrangement or an excepted financial arrangement, this isn’t considered a financial arrangement either. But again, there’s an exception to this rule which you can find in section EW 3(3)(d).

An excepted financial arrangement is not a financial arrangement. If you want to know more about how financial arrangements and excepted financial arrangements relate to each other, you can look at section EW 6.

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 It might be out of date or be missing some parts.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=DLM1515240.

Topics:
Money and consumer rights > Taxes
Previous

EW 3: What is a financial arrangement?, or

“A financial arrangement is an agreement to receive or pay money now or in the future”

Next

EW 5: What is an excepted financial arrangement?, or

“Certain financial arrangements treated differently for tax purposes”

Part E Timing and quantifying rules
Financial arrangements rules

EW 4What is not a financial arrangement?

  1. An absolute assignment of some or all of a person’s rights under another financial arrangement or under an excepted financial arrangement is not a financial arrangement, except to the extent described in section EW 3(3)(c).

  2. A legal defeasance releasing a person from some or all of their obligations under another financial arrangement or under an excepted financial arrangement is not a financial arrangement, except to the extent described in section EW 3(3)(d).

  3. An excepted financial arrangement is not a financial arrangement. The relationship between financial arrangements and excepted financial arrangements is dealt with in section EW 6.

Compare