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EZ 44: Relationship with rest of Act
or “How old financial arrangements rules work with other parts of the Act”
You could also call this:

“When old financial arrangements rules don't apply”

You don’t have to follow the old financial arrangements rules in certain situations. These situations are:

  1. If you got or issued a financial arrangement before the implementation date for that arrangement.

  2. If you got or issued a financial arrangement under a binding contract that existed before the implementation date for that arrangement.

  3. If you got a financial arrangement through a relationship agreement, and the person who gave it to you didn’t have to follow these rules.

  4. If you got or issued a financial arrangement as part of a rollover, extension, or advance that was planned before the implementation date, as long as it happened before 1 April 1990.

  5. When figuring out income or spending for people who don’t live in New Zealand, if the financial arrangement isn’t part of a business they run through a fixed place in New Zealand, or when it’s about non-resident passive income.

  6. For parts of a financial arrangement that involve interest you pay to or get from the Commissioner under Part 7 of the Tax Administration Act 1994. This interest must be about your income tax for the 1994-95 income year or any year after that.

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Next up: EZ 46: Election to treat short term trade credit as financial arrangement

or “Choose to treat short-term trade credits as financial arrangements”
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Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 45Application of old financial arrangements rules

  1. The old financial arrangements rules do not apply—

  2. in relation to a person and a financial arrangement, where the financial arrangement was issued or acquired by the person before the implementation date for the financial arrangement; or
    1. in relation to a financial arrangement, where the issue, in the case of an issuer, or acquisition, in the case of a holder, of the financial arrangement is under a binding contract in existence before the implementation date in relation to that financial arrangement:
      1. in relation to a person and a financial arrangement, where the person acquired the financial arrangement in accordance with a relationship agreement and the transferor, in relation to the financial arrangement, was a person to whom paragraph (a) or (b) applied; or
        1. in relation to a financial arrangement, where the issue, in the case of an issuer, or acquisition, in the case of a holder, of the financial arrangement is under and in terms of a rollover, extension, or advance provided for before the implementation date in relation to the financial arrangement and the rollover, extension, or advance occurs before 1 April 1990; or
          1. to the determination of—
            1. income of or expenditure incurred by a person not resident in New Zealand in relation to a financial arrangement where and to the extent that the financial arrangement does not relate to a business carried on by that person through a fixed establishment in New Zealand; or
              1. non-resident passive income; or
              2. in relation to a financial arrangement to the extent that the income or expenditure incurred by a person in respect of the financial arrangement consists of interest payable to or by the Commissioner under Part 7 of the Tax Administration Act 1994, being interest payable in relation to the income tax liability of the taxpayer in respect of the 1994–95 income year or any subsequent income year.

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