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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Definitions

EZ 45: Application of old financial arrangements rules

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:

If you got or issued a financial arrangement before the implementation date for that arrangement.
If you got or issued a financial arrangement under a binding contract that existed before the implementation date for that arrangement.
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.
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.
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.
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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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516132.

Topics:

Money and consumer rights > Taxes

EZ 44: Relationship with rest of Act, or

“How old financial arrangements rules work with other parts of the Act”

EZ 46: Election to treat short term trade credit as financial arrangement, or

“Choose to treat short-term trade credits as financial arrangements”

Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 45Application of old financial arrangements rules

The old financial arrangements rules do not apply—
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
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:
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
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
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
2. non-resident passive income; or
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.

Compare

2004 No 35 s EZ 42