Part E
Timing and quantifying rules
Terminating provisions:
Definitions
EZ 46Election to treat short term trade credit as financial arrangement
For the purposes of the old financial arrangements rules, a taxpayer may elect by notice given in accordance with subsection (2) to treat short term trade credits specified in subsection (4) as financial arrangements.
Notice of an election under subsection (1) in relation to an income year must be given to the Commissioner within the time within which a vendor or a purchaser is required under section 37 of the Tax Administration Act 1994 to furnish a return of income for the income year to which the election is to apply.
An election by the taxpayer under subsection (1) may be revoked by notice given to the Commissioner during any income year and the revocation applies only to short term trade credits created on or after the commencement of the subsequent income year.
An election under subsection (1) may be made in respect of—
- all short term trade credits of the taxpayer; or
- 1 or more classes of short term trade credits of the taxpayer that the taxpayer defines by reference either—
- to the particular currency in which the short term trade credit is denominated; or
- to the term of the short term trade credit; or
- to both the term and the particular currency in which the short term trade credit is denominated.
- to the particular currency in which the short term trade credit is denominated; or
Compare
- 2004 No 35 s EZ 43