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Income Tax Act 2007

Taxation of certain entities - Qualifying companies (QC)

HA 34: Period of grace following death of shareholder

You could also call this:

“Extra time allowed for company to keep its status after shareholder's death”

If you own a qualifying company and one of the shareholders dies, don’t worry! The company can keep its qualifying status for up to 12 months after the death. During this time, you need to make sure the company follows the rules in sections HA 5 to HA 9.

If you need more time, you can ask the Commissioner to extend the 12-month period. You can do this if you’re the company, the person looking after the deceased person’s affairs, or someone who can make choices about being a shareholder under section HA 5.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517216.

Topics:
Money and consumer rights > Taxes
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HA 35: Period of grace following revocation of election, or

“Time given to fix issues when a company loses its qualifying status”

Part H Taxation of certain entities
Qualifying companies (QC)

HA 34Period of grace following death of shareholder

  1. Despite section HA 33(1)(a), a company’s status as a qualifying company does not end because a shareholder or another person has died if, within 12 months of the death of the person, the company meets the requirements of sections HA 5 to HA 9.

  2. The Commissioner may extend the 12-month period referred to in subsection (1) on the application of the company, the personal representative of the deceased person, or a person who is entitled as a shareholder to make an election under section HA 5.

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Notes
  • Section HA 34 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).