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Income Tax Act 2007

Taxation of certain entities - Terminating provisions

HZ 7: Saving of binding rulings relating to settlements on trusts

You could also call this:

“Keeping certain tax rulings about trust settlements valid despite law changes”

This law is about keeping certain binding rulings in place. Binding rulings are official answers about how tax laws work. This law says that some binding rulings about settlements on trusts will still be valid for a while, even though the law has changed.

You can keep using these binding rulings if you asked for them before a new law called the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 started. These rulings are about whether money is a settlement on a trust. They can be from before or after this new law began.

The binding rulings will stay in place from when the Income Tax Act 2007 started until the new law gets Royal assent. Royal assent is when the Queen or her representative approves the law.

During this time, the tax department (called the Commissioner) can’t make new binding rulings about how the new law applies to these situations. This helps make sure things stay the same for people who got binding rulings before the law changed.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2719500.

Topics:
Money and consumer rights > Taxes
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HZ 6: Saving of binding rules relating to portfolio investment entities, or

“Old rules for portfolio investments still apply to existing arrangements”

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HZ 8: Retrospective transitional provision for market valuation under section HB 4, or

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Part H Taxation of certain entities
Terminating provisions

HZ 7Saving of binding rulings relating to settlements on trusts

  1. This section applies when, and to the extent to which,—

  2. before the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009—
    1. an applicant has applied for a binding ruling on an arrangement that is entered into, or that the applicant seriously contemplates will be entered into, before the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009:
      1. a binding ruling is issued; and
      2. the binding ruling is about a provision of the Income Tax Act 2004 on the question of whether an amount is a settlement on a trust; and
        1. the binding ruling—
          1. is made before or after the commencement of this Act and continues to exist at the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009; and
            1. is made in relation to a provision of the Income Tax Act 2004 to which section ZA 4 (Saving of binding rulings) of this Act would have applied but for the intended change listed in schedule 51 (Identified changes in legislation) for section HC 27(2) (Who is a settlor?); and
            2. in the absence of this section, the commencement of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 would mean that the binding ruling would cease to apply because of section 91G of the Tax Administration Act 1994.

              1. The binding ruling continues to exist despite the intended change referred to in subsection (1)(c)(ii) from the commencement of this Act to the date on which the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 receives the Royal assent.

              2. To the extent to which a binding ruling continued by subsection (2) exists and applies to an arrangement, or to a person and an arrangement, the Commissioner must not make a binding ruling in the period that starts on the date of the commencement of this Act and ends on the date on which the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 receives the Royal assent on how—

              3. the new law applies to the arrangement or to the person and the arrangement; or
                1. this subsection applies to the arrangement or to the person and the arrangement.

                  Notes
                  • Section HZ 7: added (with effect on 1 April 2008), on , by section 53 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                  • Section HZ 7 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).