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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 11: Pension payments to former employees

You could also call this:

"Pension payments to former employees are treated like they are paid to you, even if they go to someone else."

Illustration for Income Tax Act 2007

You get a pension from a former employer. The employer pays some or all of it to another person because of a settlement. This happens when relationship property is settled. You are entitled to the pension payment. The law treats the payment to the other person as if it were paid to you. This is according to section DC 2. The amount paid to the other person is like a pension payment to you. The rules in section DC 2(1) and (2) apply to this payment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516349.

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Money and consumer rights > Savings and retirementFamily and relationships > Marriage and partnerships
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"What happens to look-through companies when you split relationship property"

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FB 12: Pension payments to former partners, or

"Pension payments to ex-partners are treated specially for tax purposes."

Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 11Pension payments to former employees

  1. This section applies for the purposes of section DC 2 (Pension payments to former employees) when a person is entitled to the payment of a pension from a former employer, and because of a settlement of relationship property, the employer pays some or all of the amount of the pension to another person.

  2. Section DC 2(1) and (2) applies to the amount paid as if it were the payment of a pension to the former employee.

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