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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Definitions

EZ 32E: Change in section EX 20B for income of CFC insurer: interest on terminal tax

You could also call this:

“Interest waived on certain CFC insurer terminal tax debts from 2009 to 2012”

This law applies to you if you owe terminal tax for an income year starting on or after 1 July 2009. It’s about tax returns you sent to the Commissioner before the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 became law. This tax debt wouldn’t exist if the new version of section EX 20B(3)(f) hadn’t started on 1 July 2009.

If this applies to you, you don’t have to pay interest on this tax debt for the time between 1 July 2009 and either 30 June 2012 or a later date set by the Commissioner. Usually, you would have to pay interest according to Part 7 of the Tax Administration Act 1994, but this new rule overrides that part of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4886698.

Topics:

Money and consumer rights > Taxes

EZ 32D: Value of asset fraction: CFC with excessive debt funding and loan entered before 21 June 2012, or

“Calculating income for CFCs with pre-2012 excessive debt funding”

EZ 32F: Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS, or

“Using older accounting methods for overseas companies in specific situations”

Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 32EChange in section EX 20B for income of CFC insurer: interest on terminal tax

This section applies when a person has a liability for terminal tax (the resulting liability)—
for an income year beginning on or after 1 July 2009; and
relating to a return of income provided to the Commissioner before the date on which the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (the amending Act) receives the Royal assent; and
that the person would not have but for the replacement by the amending Act of section EX 20B(3)(f) (Attributable CFC amount) coming into force on 1 July 2009.

The person is not liable to pay interest under Part 7 of the Tax Administration Act 1994 in relation to the resulting liability for the period beginning with 1 July 2009 and ending on the later of—
30 June 2012:
a date fixed by the Commissioner for the payment of the resulting liability.

This section overrides Part 7 of the Tax Administration Act 1994.

Notes

Section EZ 32E: inserted (with effect on 30 June 2009) on 2 November 2012 (applying for income years beginning on or after 1 July 2009), by section 65(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
Section EZ 32E list of defined terms tax position: repealed, on 24 February 2016, by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).