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New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Definitions

EZ 47: Election to continue to treat certain excepted financial arrangements as financial arrangements

You could also call this:

“Choosing to keep certain pre-1999 financial deals under old tax rules”

You can choose to keep treating certain financial deals as regular financial arrangements, even if they’re usually not treated that way. This applies to some specific types of deals that you made between your last balance date and 20 May 1999.

If you want to do this, you need to report the money you earned and spent from these deals using the old financial arrangement rules when you file your tax return. This is how you tell the government you’re making this choice.

If you decide to treat these deals as regular financial arrangements, they won’t be considered ‘excepted’ anymore. This means you’ll handle them differently for tax purposes.

Remember, this only applies to certain types of financial deals. If you’re not sure if your deal qualifies, you might want to ask for help.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516134.

Topics:
Money and consumer rights > Taxes
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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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EZ 48: Definitions, or

“Explains key terms used in old financial arrangements rules”

Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 47Election to continue to treat certain excepted financial arrangements as financial arrangements

  1. A person may elect to continue to treat all excepted financial arrangements under any of paragraphs (p), (q), (r), (s), (t), (u), and (v) of the definition of excepted financial arrangement as financial arrangements if the person is a holder or an issuer of an arrangement that was entered into on or after the person’s last balance date and before 20 May 1999.

  2. A person elects to treat their excepted financial arrangements as financial arrangements by returning income derived and expenditure incurred from the elected arrangements under the old financial arrangements rules in their return of income.

  3. A financial arrangement that is an excepted financial arrangement under any of paragraphs (p), (q), (r), (s), (t), (u), and (v) of the definition of excepted financial arrangement is not an excepted financial arrangement for the holder or issuer who elects to treat it as a financial arrangement under subsection (1).

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