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GC 3: Disposals by life insurers
or “Rules for life insurers selling property as part of their business”
You could also call this:

“Rules for selling or giving away emissions units”

When you get rid of emissions units, the law treats them like trading stock. This means that Section GC 1 applies to these disposals. However, there are some exceptions where this rule doesn’t apply.

You don’t have to follow Section GC 1 if you’re giving up the emissions unit under the Climate Change Response Act 2002. The rule also doesn’t apply if you’re transferring the unit to the Crown as part of a permanent forestry scheme.

There’s another exception for forest land emissions units. If you received the unit from the Crown, you can transfer it to someone else who’s part of a forestry rights agreement. This agreement is defined in the Forestry Rights Registration Act 1983. The transfer must be required by the agreement and relate to how income or emissions units are shared between you and the other person.

Lastly, Section GC 1 doesn’t apply if you’re cancelling the emissions unit.

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Next up: GC 4: Disposals and acquisitions of FIF attributing interests

or “Rules for buying and selling shares in foreign investment funds”
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Part G Avoidance and non-market transactions
Market value substituted

GC 3BDisposals of emissions units

  1. Section GC 1 applies to a disposal of an emissions unit as if the emissions unit were trading stock.

  2. Section GC 1 does not apply to a disposal of an emissions unit if the disposal is—

  3. the surrender of the unit under the Climate Change Response Act 2002:
    1. the transfer of the unit to the Crown under a permanent forestry scheme:
      1. the transfer of a forest land emissions unit—
        1. from the person (the transferor) who receives the unit from the Crown; and
          1. to a person (the transferee) as a party to a forestry rights agreement as defined in the Forestry Rights Registration Act 1983; and
            1. as required by a provision of the forestry rights agreement relating to the allocation of income or emissions units between the transferor and the transferee:
            2. the cancellation of the unit.

              Notes
              • Section GC 3B: inserted (with effect on 26 September 2008), on (applying for the 2008–09 and later income years), by section 56(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
              • Section GC 3B(2)(b): amended, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).
              • Section GC 3B(2)(c)(iii): amended (with effect on 1 January 2009), on , by section 113(1) (and see section 113(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
              • Section GC 3B(2)(d): inserted (with effect on 1 January 2009), on , by section 113(2) (and see section 113(3) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
              • Section GC 3B list of defined terms disposal: repealed, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
              • Section GC 3B list of defined terms dispose: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).