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EZ 51: Transitional adjustment when changing to financial arrangements rules
or “How to adjust your taxes when switching to new financial arrangement rules”
You could also call this:

“New rules for financial arrangements may also apply to old arrangements”

When you’re dealing with old financial arrangements, you need to know that some new rules also apply to them. Here’s how it works:

If you have an old financial arrangement that follows the old rules, and there’s a new law that only talks about financial arrangements under the new rules, the new law might still apply to your old arrangement. This happens if the new law replaces an old law that used to apply to your arrangement before 20 May 1999.

There are a couple of exceptions to this. The new rule doesn’t apply if it’s about a definition in Section YA 1 that mentions Section EZ 48. It also doesn’t apply to Section GB 21, because the old law it’s based on has been rewritten as Section EZ 50.

For some specific rules about company groups and financial arrangements, you need to replace some words. When you’re looking at Section FM 8(3)(b)(ii) for old financial arrangements, you should read it as if it’s talking about Section EZ 38 instead of Section EW 31. Also, wherever it says “financial arrangements rules”, you should think “old financial arrangements rules” instead.

This helps make sure that old arrangements are still covered by new laws, even when the new laws don’t specifically mention them.

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Next up: EZ 52B: Consistency of use of IFRS method: Determination G3 change allowed

or “Changes allowed to tax calculation method for financial agreements in certain situations”
Next

Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 52References to new rules include old rules

  1. Subsection (2) applies if—

  2. the old financial arrangement rules apply to a financial arrangement (old financial arrangement); and
    1. a taxation law in this Act (rewritten law) refers only to, or applies only to, a financial arrangement to which the financial arrangements rules apply; and
      1. the rewritten law is in neither subpart EW nor sections EZ 33 to EZ 51; and
        1. the rewritten law corresponds to and replaces, with or without amendments, a taxation law that applied to the old financial arrangement before 20 May 1999.

          1. The rewritten law applies to the old financial arrangement as if the rewritten law referred to, or applied to, a financial arrangement to which the old financial arrangements rules apply.

          2. Subsection (2) does not apply to—

          3. a definition, or parts of a definition, in section YA 1 if that definition or part refers to section EZ 48; or
            1. section GB 21, because the former taxation law to which it corresponds has been re-enacted as section EZ 50.

              1. Section FM 8(3)(b)(ii) applies to a financial arrangement to which the old financial arrangements rules apply as if—

              2. the reference to section EW 31 were to section EZ 38; and
                1. the words financial arrangements rules read old financial arrangements rules.

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