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Income Tax Act 2007

Taxation of certain entities - Terminating provisions

HZ 9: Elections to treat existing debt funding special purpose vehicles as transparent

You could also call this:

“Choosing to count a special company's income as your own for tax purposes”

When you transfer assets to a special purpose vehicle, this section applies. You do this before the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 receives the Royal assent or if you attributed assets as described in section HR 9BAA(3).

You make an election by including the income and expenses of the special purpose vehicle in your tax return. This happens for an income year starting on or after the date the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 receives the Royal assent.

If you make this election, you cannot change your mind. The election starts from the beginning of the income year you made it and stays in effect until the company or trust stops being a special purpose vehicle. This section overrides section HR 9BA.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS179743.

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HZ 10: What happens when election is made under section HZ 9?, or

"What happens to tax when a special company takes over a financial arrangement under section HZ 9?"

Part H Taxation of certain entities
Terminating provisions

HZ 9Elections to treat existing debt funding special purpose vehicles as transparent

  1. This section applies when an originator transferred any of their assets to a debt funding special purpose vehicle or an originator has attributed assets as described in section HR 9BAA(3) before the day after the date on which the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 receives the Royal assent.

  2. An originator makes an election referred to in section HR 9 (Debt funding special purpose vehicles are transparent if election made by originator) by returning income derived and expenditure incurred by the special purpose vehicle in their return of income for an income year starting on or after the date on which the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 receives the Royal assent.

  3. An election under this section—

  4. cannot be revoked; and
    1. has effect from the start of the income year for which the election is made; and
      1. remains in effect until the relevant company or trustee of a trust stops being a special purpose vehicle.

        1. This section overrides section HR 9BA (Elections to treat debt funding special purpose vehicles as transparent).

        Notes
        • Section HZ 9: inserted, on , by section 227(1) (and see section 227(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
        • Section HZ 9(1): replaced, on , by section 96(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
        • Section HZ 9(2): amended, on , by section 96(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
        • Section HZ 9(3)(c): amended, on , by section 96(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).