Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Branch equivalent tax accounts (BETA) - Introductory provisions

OE 17: Person choosing to become BETA person

You could also call this:

“How to choose to become a BETA person and start a branch equivalent tax account”

If you are eligible to become a BETA person according to [section OE 1(2)], you can choose to do so for an income year. You can make this choice at any time during that income year, or by the day you need to file your tax return for that year. If you need more time, you can ask the Commissioner for permission to choose later.

After you make your choice, you need to tell the Commissioner about it. You should do this within 21 days of making your choice. If you need more time to notify the Commissioner, you can ask for permission to do so later.

When you become a BETA person, you must start keeping a branch equivalent tax account. This account needs to be set up from the first day of the income year in which you made your choice to become a BETA person.

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 It might be out of date or be missing some parts.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=DLM1519232.

Topics:
Money and consumer rights > Taxes
Previous

OE 16B: Company with credit balance at beginning of first affected income year, or

“Removed rule about companies with leftover credit at the start of a specific tax year”

Next

OE 18: When person stops being BETA person, or

“How to end your status as a BETA person and close your branch equivalent tax account”

Part O Memorandum accounts
Branch equivalent tax accounts (BETA): Introductory provisions

OE 17Person choosing to become BETA person

  1. A person who is eligible under section OE 1(2) and who chooses to become a BETA person may make the election for an income year—

  2. at any time during the income year; or
    1. no later than the day on which the person is required to file a return of income for the income year; or
      1. by a later date if the Commissioner allows.

        1. The person must notify the Commissioner of the election under subsection (1)—

        2. no later than 21 days after the election; or
          1. by a later date if the Commissioner allows.

            1. A BETA person must maintain a branch equivalent tax account from the first day of the income year in which they make the election.

            Compare