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Income Tax Act 2007

Taxation of certain entities - Other entities

HR 10B: What happens when persons stop being originators?

You could also call this:

“What happens to your job and assets when you stop being an originator?”

When you stop being an originator, some things happen. You are an originator if you have a special job with a company that helps with debt funding. If you stop being an originator, another person might take your place. This new person is called the second originator and they must be part of the same company group as you. They will then be in charge of the assets you used to handle, as described in section HR 9(1) and section HR 9BAA(3). The second originator will be treated as if they bought and owned these assets in the same way you did, and they will also be treated as if they paid or received the same amounts of money as you did for these assets, for the purposes of section HR 9.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1430409.

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Part H Taxation of certain entities
Other entities

HR 10BWhat happens when persons stop being originators?

  1. Subsections (2), (3), and (4) apply for an income year when, in relation to a debt funding special purpose vehicle and an asset referred to in section HR 9(1),—

  2. an originator (the first originator) stops being an originator at a particular date in the income year (the breach date); and
    1. another person (the second originator)—
      1. is or becomes a beneficiary or shareholder of the special purpose vehicle; and
        1. immediately before the breach date, is a member of the wholly-owned group of companies of which the first originator is part; and
          1. immediately after the breach date, holds the assets of the first originator as attributed assets described in section HR 9BAA(3).

          2. For the purposes of section HR 9, and for the special purpose vehicle and an originator for the income year and later income years, the second originator is treated as if—

          3. they acquired and held the assets of the first originator on the same basis as the first originator:
            1. they paid or received the amounts of consideration originally paid or received by the first originator for or under an asset of the first originator that is a financial arrangement or excepted financial arrangement.

              1. For the purposes of section HR 9, and for the special purpose vehicle and an originator for the income year and later income years, the first originator is treated as if they were not an originator for the assets and arrangements referred to in subsection (2).

              2. For the purposes of subsection (2)(a), the first originator is treated as not having acquired or held the assets.

              3. In relation to a special purpose vehicle and an asset referred to in section HR 9(1), for the income year that includes the breach date, the first originator is treated as a party that is not required to calculate a base price adjustment, despite section EW 29 (When calculation of base price adjustment required).

              4. Section HR 10 overrides this section.

              5. For the purposes of this section, a beneficiary or shareholder includes a member of the same wholly-owned group of companies as a beneficiary or shareholder.

              6. Subsections (2), (3), and (4) do not give rise to a supply of goods or services under the Goods and Services Tax Act 1985.

              Notes
              • Section HR 10B: inserted, on , by section 94 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).