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Income Tax Act 2007

Timing and quantifying rules - Financial arrangements rules - Consideration when financial arrangement involves property or services

EW 35: Value relevant for non-financial arrangements rule

You could also call this:

“How to calculate the value of property or services in non-financial arrangements”

When you get or give away property or services as part of a financial arrangement, the value of these things can affect how much money you earn or spend according to tax rules. These rules are not part of the financial arrangements rules.

If this happens to you, the government will treat you as if you got or gave away the property or services for a certain value. They work out this value using a special method described in section EW 32(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515319.

Topics:
Money and consumer rights > Taxes
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Part E Timing and quantifying rules
Financial arrangements rules: Consideration when financial arrangement involves property or services

EW 35Value relevant for non-financial arrangements rule

  1. This section applies when the value of property or services acquired or disposed of under a financial arrangement, or the consideration for it, is relevant in determining a person’s income or deductions under any provision of this Act that is not a financial arrangements rule.

  2. The person is treated as having acquired or disposed of the property or services for a value determined by applying section EW 32(2).

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Notes
  • Section EW 35(1): amended (with effect on 1 April 2008), on , by section 83(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
  • Section EW 35(2): amended (with effect on 1 April 2008), on , by section 83(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).