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Income Tax Act 2007

Definitions and related matters - Measurement of company ownership

YC 14: Disregarding concessionary rules

You could also call this:

“When special rules help a company meet continuity requirements”

When you’re looking at the rules for a company’s continuity, there are some special rules that can help the company. These rules are meant to be helpful and make things easier. If a company doesn’t meet the normal requirements for continuity, but would have met them if these special rules were used, then the company is treated as if it did meet the requirements.

These special rules are found in [sections YC 10 to YC 13]. If using these rules would have made the difference between meeting the continuity requirements or not, then the company is considered to have met the requirements.

This means that even if a company doesn’t quite fit the usual rules, it might still be okay if these special helping rules apply. It’s like getting a bit of extra help to pass a test.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1523106.

Topics:
Money and consumer rights > Taxes
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YC 15: Directors’ knowledge of failure to meet requirements of continuity provision, or

“Directors' responsibility when company ownership changes affect rule compliance”

Part Y Definitions and related matters
Measurement of company ownership

YC 14Disregarding concessionary rules

  1. As the provisions of sections YC 10 to YC 13 are intended to have concessionary effect, subsection (2) applies if—

  2. at a time, for a company and a continuity provision, the requirements of the provision are not met; but
    1. the requirements would have been met but for the application to a particular extent of sections YC 10 to YC 13.

      1. The requirements of the continuity provision are treated as met at the time.

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