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Income Tax Act 2007

Definitions and related matters - Terminating provisions

YZ 3: Saving effect of section DF 5 of Income Tax Act 1994

You could also call this:

“Continuing old tax rules for certain retirement payments”

This section applies to you if you made a payment that would normally fall under section DC 1, which deals with lump sum payments on retirement. It’s relevant if you allocated the deduction for this payment to an income year based on the wording in section DF 5 of the old Income Tax Act 1994, which talked about retiring allowances for employees. For this to apply, you must have taken this tax position on or before 22 February 2011.

Even though section DC 1 has different wording, section DF 5 will still apply to your tax position in the same way it did before the Income Tax Act 1994 was replaced by the Income Tax Act 2004. This means you can continue to use the rules from the old act for this specific situation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4056100.

Topics:
Money and consumer rights > Taxes
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YZ 2: Saving of effect of section 394L(4A) of Income Tax Act 1976, or

“Old rule from 1976 Income Tax Act still applies”

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YZ 4: Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011, or

“Earthquake-related terms from old law still apply to some tax rules”

Part Y Definitions and related matters
Terminating provisions

YZ 3Saving effect of section DF 5 of Income Tax Act 1994

  1. This section applies when a person—

  2. has made a payment to which section DC 1 (Lump sum payments on retirement) would otherwise apply in the absence of this section; and
    1. has allocated the deduction for the payment to an income year relying on the wording used in section DF 5 (Retiring allowances payable to employees) of the Income Tax Act 1994; and
      1. has taken the tax position for the allocation on or before 22 February 2011.

        1. Despite the express wording used in section DC 1, section DF 5 continues to apply for the person in relation to the tax position in the same manner as it applied immediately before the repeal of the Income Tax Act 1994 by the Income Tax Act 2004.

        Notes
        • Section YZ 3: added (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 135(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
        • Section YZ 3 list of defined terms tax position: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).