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Income Tax Act 2007

Taxation of certain entities - Qualifying companies (QC)

HA 31: Revocation of directors’ elections

You could also call this:

“How directors can cancel their previous company election”

If you’re a director of a company, you can choose to revoke an election made under section HA 5. To do this, you and the other directors need to make a decision together. This decision is called a resolution. After you make this resolution, you need to tell the Commissioner about it by sending a notice.

When you revoke the election, it doesn’t happen right away. The revocation starts at the later of two times:

  1. It can start at the beginning of the income year that you and the other directors choose in your notice.

  2. Or, it can start at the beginning of the income year when the Commissioner gets your notice.

The revocation will start at whichever of these two times comes later.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517210.

Topics:
Money and consumer rights > Taxes
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Part H Taxation of certain entities
Qualifying companies (QC)

HA 31Revocation of directors’ elections

  1. An election by directors under section HA 5 may be revoked only by a resolution of the board of directors. The board must advise the Commissioner of the resolution by providing a notice of revocation.

  2. The revocation of an election takes effect at the later of—

  3. the start of the income year that the board nominates in the notice of registration; or
    1. the start of the income year in which the notice of revocation is received by the Commissioner.

      Compare
      Notes
      • Section HA 31(2): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 121(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).