Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Agents

HD 10: Mortgagees in possession

You could also call this:

“Rules for when someone takes control of property due to unpaid loans”

If someone (let’s call them person A) takes control of land or property because the owner (person B) couldn’t pay back their loan, person A is treated as if they’re working for person B. This happens when person A makes money from the land or property for person B’s benefit. In this situation, person A is called a “mortgagee in possession” and person B is called a “mortgagor”. You might hear this referred to as section HK 10 in older laws.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517401.

Topics:
Money and consumer rights > Banking and loans
Money and consumer rights > Taxes
Previous

HD 9: Guardians, or

“Rules for guardians managing income for those unable to do so themselves”

Next

HD 11: Nominated companies, or

“Companies that act as agents for consolidated or imputation groups”

Part H Taxation of certain entities
Agents

HD 10Mortgagees in possession

  1. A person (person A) is treated as an agent of another person (person B) if, as mortgagee in possession of land or other property, person A derives income from the land or property on behalf or for the benefit of person B as mortgagor.

Compare