Plain language law

New Zealand law explained for everyone

HZ 10: What happens when election is made under section HZ 9?
or “Special tax rules apply when a debt funding company is chosen”

You could also call this:

“Protection from penalties for certain securities rule breaches due to tax law changes”

If you break certain rules about securities because of some new laws, you won’t get in trouble. This applies if:

The rule-breaking happened because of some specific parts of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020.

The rules you broke were about a product disclosure statement or information on the disclosure register under the Financial Markets Conduct Act 2013.

The rules were about a multi-rate PIE that isn’t a KiwiSaver scheme. A PIE is a type of investment.

The rule-breaking stopped before 31 January 2021.

If all these things are true, then you won’t get in trouble for breaking those securities rules.

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Next up: IA 1: What this subpart does

or “This subpart outlines how tax losses connect to other parts of the Income Tax Act and sets up basic rules for using them.”

Non-compliance with an enactment related to securities is ignored if the non-compliance—
results from the enactment of sections 83, 103(1) and (3), and 148 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020; and
relates to a product disclosure statement, or to information lodged on the relevant disclosure register, under the Financial Markets Conduct Act 2013; and
concerns a multi-rate PIE that is not a KiwiSaver scheme; and
comes to an end before 31 January 2021.

Notes

Section HZ 11: inserted, on 23 March 2020, by section 153 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).