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Income Tax Act 2007

Timing and quantifying rules - Financial arrangements rules - Consideration when anti-avoidance provision applies

EW 54: Meaning of cash basis person

You could also call this:

“Who qualifies as a cash basis person for tax purposes”

You are a cash basis person for an income year if you meet certain conditions. These conditions are found in different parts of the law. You need to meet one of the conditions in section EW 57(1) or section EW 57(2). You also need to meet the condition in section EW 57(3). All of these conditions must apply to you for that income year.

Even if you meet these conditions, you might not be a cash basis person for some types of financial arrangements. Section EW 59 explains when you might be excluded from being a cash basis person for certain financial arrangements.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515373.

Topics:

Money and consumer rights > Taxes

EW 53: Adjustment required, or

“Adjusting your taxes for certain financial arrangements”

EW 55: Effect of being cash basis person, or

“How being a cash basis person affects your financial reporting options”

Part E Timing and quantifying rules
Financial arrangements rules: Consideration when anti-avoidance provision applies

EW 54Meaning of cash basis person

A person is a cash basis person for an income year if—
1 of the following applies in the person's case for the income year:
1. section EW 57(1); or
2. section EW 57(2); and
section EW 57(3) applies in the person's case for the income year.

A person may be excluded under section EW 59 from being a cash basis person for a class of financial arrangements.

Notes

Section EW 54: substituted, on 1 April 2009, by section 9(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).