Part E
Timing and quantifying rules
Controlled foreign company and foreign investment fund rules:
Calculation of FIF income or loss
EX 45Exclusion of amounts of death benefit
When this section applies, a person is treated as not deriving FIF income to the extent to which the income arises solely from receiving a death benefit under a life insurance policy.
This section applies if—
- the person or the deceased (the contracting party), when not a New Zealand resident, entered into a binding contract that gave rise to the benefit; and
- at the time the contract was entered into, the contracting party either had not previously been a New Zealand resident or had not been a resident for at least the previous 10 years; and
- the benefit was not increased by a voluntary action taken after the contracting party became a resident.
This section also applies if—
- before 2 July 1992 the person or the contracting party entered into a binding contract giving rise to the benefit; and
- the benefit was not increased by a voluntary action taken on or after 2 July 1992.
Compare
- 2004 No 35 s EX 39