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Income Tax Act 2007

Recharacterisation of certain transactions - Terminating provisions

FZ 5: Commercial bills

You could also call this:

"Taxes on commercial bills when you split relationship property"

Illustration for Income Tax Act 2007

When you transfer a commercial bill as part of a settlement of relationship property, it affects your taxes. You treat the transfer as if you sold the bill and the other person bought it. The amount of the sale is what the bill cost you. You can find more information about commercial bills in section CZ 6. This rule is used when working out taxes for commercial bills. It helps you understand how the transfer affects your taxes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516857.

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Part FRecharacterisation of certain transactions
Terminating provisions

FZ 5Commercial bills

  1. This section applies for the purposes of section CZ 6 (Commercial bills before 31 July 1986) when a commercial bill is transferred under a settlement of relationship property.

  2. The transfer is treated as a disposal by the transferor and an acquisition by the transferee for an amount that equals the cost of the bill to the transferor.

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