Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
YF 2: Other rules for currency conversion: approved alternatives
or “ Using approved alternative rates for converting foreign currency to NZ dollars ”
You could also call this:

“Rules for determining where interest income comes from”

You need to know about a rule for interest that comes from money lent or from commercial bills. This rule applies to interest from money lent under a contract made on or after 29 July 1983. It also applies to payments made when a commercial bill is paid back, but only if the bill was issued on or after 29 July 1983 and wasn’t issued under a contract made before that date.

When we talk about ‘issuing’ a commercial bill, we mean the same thing as what’s explained in section 2 of the Bills of Exchange Act 1908.

This rule is part of Section YD 4(11)(a) and (b), which talks about types of income that are treated as coming from New Zealand.

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 It might be out of date or be missing some parts.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

Next up: YZ 2: Saving of effect of section 394L(4A) of Income Tax Act 1976

or “Old rule from 1976 Income Tax Act still applies”
Next

Part Y Definitions and related matters
Terminating provisions

YZ 1Source rule for interest

  1. Section YD 4(11)(a) and (b) (Classes of income treated as having New Zealand source) applies to—

  2. interest derived from money lent under a binding contract entered into on or after 29 July 1983:
    1. a redemption payment made on a commercial bill if—
      1. it was issued on or after 29 July 1983; and
        1. it was not issued under a binding contract entered into before that date.

        2. In this section, issue has the meaning given in section 2 of the Bills of Exchange Act 1908.

        Compare