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Income Tax Act 2007

Timing and quantifying rules - Financial arrangements rules

EW 11: What financial arrangements rules do not apply to

You could also call this:

“Exceptions to financial arrangement rules for certain income and interest types”

The financial arrangements rules don’t apply to certain types of income and interest. You don’t need to use these rules when figuring out resident passive income. For non-resident passive income, you usually don’t use them either, except for non-resident financial arrangement income or income from a pretend loan under section FG 3. The rules also don’t apply to interest the Commissioner pays you if they’ve taken too much income tax from you. Finally, these rules don’t cover interest you might need to pay to the Commissioner if you haven’t paid enough income tax.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515256.

Topics:
Money and consumer rights > Taxes
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EW 10: Financial arrangements to which financial arrangements rules apply, or

“Rules for financial arrangements made or changed after 20 May 1999”

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EW 12: When use of spreading method required, or

“When you must spread income or expenses from financial arrangements over multiple years”

Part E Timing and quantifying rules
Financial arrangements rules

EW 11What financial arrangements rules do not apply to

  1. The financial arrangements rules do not apply to—

  2. the calculation of resident passive income:
    1. the calculation of non-resident passive income, other than—
      1. non-resident financial arrangement income; or
        1. income derived under a notional loan under section FG 3 (Notional interest):
        2. interest paid by the Commissioner under Part 7 of the Tax Administration Act 1994 for an overpayment of income tax:
          1. interest payable to the Commissioner under Part 7 of the Tax Administration Act 1994 for an underpayment of income tax.

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            Notes
            • Section EW 11(b): replaced, on , by section 72(1) (and see section 5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
            • Section EW 11 list of defined terms non-resident financial arrangement income: inserted, on , by section 72(2) (and see section 5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).