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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Definitions

EZ 30: Base premium for 1998–99 premium year under Accident Insurance Act 1998

You could also call this:

“Rules for timing and treatment of 1998-99 accident insurance base premium payments”

When you pay the base premium for the 1998-99 premium year, there are some special rules about when it counts as spending money. If you pay it on or before the discount payment date, and this date is before the due date on your invoice, it counts as spending in the tax year when the discount payment date happens. This rule is more important than what section EF 3(1) says about accident compensation levies and premiums.

If you’re paying your base premium in monthly instalments and there’s interest, the interest is treated as if you pay it on the day it’s added to your account. This happens according to regulation 8 of the Accident Insurance (Payment of Base Premiums) Regulations 1999.

The terms ‘base premium for the 1998-99 premium year’, ‘discount payment date’, and ‘monthly instalment plan’ all have special meanings. You can find out what they mean by looking at the Accident Insurance (Payment of Base Premiums) Regulations 1999.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516097.

Topics:
Money and consumer rights > Taxes
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“Rules for accident insurance companies' tax reserves”

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Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 30Base premium for 1998–99 premium year under Accident Insurance Act 1998

  1. An amount of base premium for the 1998–99 premium year that is paid on or before the discount payment date is treated as expenditure in the tax year in which the discount payment date falls if the discount payment date is before the date on the invoice that specifies when payment is due. This subsection overrides section EF 3(1) (Accident compensation levies and premiums).

  2. Interest payable on a base premium for the 1998–99 premium year under a monthly instalment plan is treated as being payable on the date that the interest is applied under regulation 8 of the Accident Insurance (Payment of Base Premiums) Regulations 1999.

  3. In this section, base premium for the 1998–99 premium year, discount payment date, and monthly instalment plan have the meanings given to them in the Accident Insurance (Payment of Base Premiums) Regulations 1999.

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