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Acts
Income Tax Act 2007
Deductions
Interest incurred in relation to certain land
DH 11: Denied amounts: treatment upon disposal of disallowed residential property

A 1Title A 2Commencement

Part A:
Purpose and interpretation

AA 1Purpose of Act AA 2Interpretation AA 3Definitions AA 4Crown bound

Part B:
Core provisions

Purpose

BA 1Purpose

Income tax and resulting obligations

BB 1Imposition of income tax BB 2Main obligations BB 3Overriding effect of certain matters

Calculating and satisfying income tax liabilities

BC 1Non-filing and filing taxpayers BC 2Annual gross income BC 3Annual total deduction BC 4Net income and net loss BC 5Taxable income BC 6Income tax liability of filing taxpayer BC 7Income tax liability of person with schedular income BC 8Satisfaction of income tax liability

Income, deductions, and timing

BD 1Income, exempt income, excluded income, non-residents' foreign-sourced income, and assessable income BD 2Deductions BD 3Allocation of income to particular income years BD 4Allocation of deductions to particular income years

Withholding liabilities

BE 1Withholding liabilities

Other obligations

BF 1Other obligations

Avoidance

BG 1Tax avoidance

Double tax agreements

BH 1Double tax agreements

Part C:
Income

General rules

CA 1Amounts that are income CA 2Amounts that are exempt income or excluded income

Income from business or trade-like activities

CB 1Amounts derived from business CB 2Amounts received on disposal of business assets that include trading stock CB 3Profit-making undertaking or scheme CB 4Personal property acquired for purpose of disposal CB 5Business of dealing in personal property CB 6ADisposal within 2 years: bright-line test for residential land CB 6ABResidential land transferred in relation to certain family trusts and other capacities CB 6ACResidential land transferred in relation to certain Māori family trusts CB 6AECertain transfers of residential land included in settlement of claim under the Treaty of Waitangi CB 6Disposal: land acquired for purpose or with intention of disposal CB 7Disposal: land acquired for purposes of business relating to land CB 8Disposal: land used for landfill, if notice of election CB 9Disposal within 10 years: land dealing business CB 10Disposal within 10 years: land development or subdivision business CB 11Disposal within 10 years of improvement: building business CB 12Disposal: schemes for development or division begun within 10 years CB 13Disposal: amount from major development or division and not already in income CB 14Disposal: amount from land affected by change and not already in income CB 15Transactions between associated persons CB 15BWhen land acquired

Income from holding property (excluding equity)

CC 1Land CC 1BConsideration relating to grant, renewal, extension, or transfer of leasehold estate or licence CC 1CConsideration for agreement to surrender leasehold estate or terminate licence CC 2Non-compliance with covenant for repair CC 2BCompensation for land or buildings affected by emergency events CC 2CCompensation for improvements to land affected by emergency events CC 3Financial arrangements CC 4Payments of interest CC 5Annuities CC 6Prizes received under Building Societies Act 1965 CC 7Consideration other than in money CC 8Use of money interest payable by Commissioner CC 8BCertain commercial bills: non-resident holders CC 9Royalties CC 9BResale royalties CC 9CAmount of resale royalty retained by collection agency CC 10Films CC 11Lessee acquiring lease asset on expiry of term of lease CC 12Lessor acquiring lease asset on expiry of term of lease CC 13Amounts paid in income years after hire purchase agreement ends CC 14NZ IFRS 16 leases CC 15New investment assets: change of use

Income from equity

CD 1Dividend CD 2Distribution excluded from being dividend CD 3Meaning of dividend CD 4Transfers of company value generally CD 5What is a transfer of company value?CD 6When is a transfer caused by a shareholding relationship?CD 7Bonus issues in lieu of dividend CD 7BShares issued under profit distribution plans CD 8Elections to make bonus issue into dividend CD 9Interests in money or property of foreign unit trust CD 10Bonus issue by foreign unit trust instead of money or property CD 11Avoidance arrangements CD 12Superannuation schemes entering trust rules CD 13Notional distributions of producer boards and co-operative companies CD 14Notional distributions of emigrating companies CD 15Tax credits linked to dividends CD 16Certain dividends not increased by tax credits CD 17Credit transfer notice CD 18Dividend reduced if foreign tax paid on company’s income CD 19Foreign tax credits and refunds linked to dividends CD 20Benefits of shareholder-employees or directors CD 21Attributed repatriations from controlled foreign companies CD 22Returns of capital: off-market share cancellations CD 23Ordering rule and slice rule CD 23BReturns of capital: shares repurchased under profit distribution plans CD 24Returns of capital: on-market share cancellations CD 25Treasury stock acquisitions CD 26Capital distributions on liquidation or emigration CD 27Property made available intra-group CD 28Transfers of certain excepted financial arrangements within wholly-owned groups CD 29Non-taxable bonus issues CD 29BIssues to shareholders of rights to subscribe for or sell back shares CD 29CTransfers to shareholders by ASX-listed Australian company of shares in subsidiary CD 30Transfer by unit trust of legal interest after beneficial interest vests CD 31Flat-owning companies CD 32Employee benefits CD 33Payments corresponding to notional distributions of producer boards and co-operative companies CD 34Distribution to member of co-operative company based on member’s transactions CD 34BDistributions to members of co-operative companies CD 35Resident’s restricted amalgamations CD 36Foreign investment fund income CD 36BForeign superannuation withdrawals and pensions from foreign superannuation scheme CD 37Maori authority distributions CD 38General calculation rule for transfers of company value CD 39Calculation of amount of dividend when property made available CD 40Adjustment if dividend recovered by company CD 41Adjustment if amount repaid later CD 42Adjustment if additional consideration paid CD 43Available subscribed capital (ASC) amount CD 44Available capital distribution amount CD 45When does a person have attributed repatriation from a controlled foreign company?CD 46New Zealand repatriation amount CD 47New Zealand property amount CD 48Cost of tangible property CD 49Cost of associated party equity CD 50Outstanding balances of financial arrangements CD 51Property transfers between associated persons CD 52Unrepatriated income balance CD 53Prevention of double taxation of share cancellation dividends CD 54Replacement payments

Employee or contractor income

CE 1Amounts derived in connection with employment CE 1BGeneral rule: accommodation provided by employers CE 1CException: overseas accommodation CE 1DException: accommodation provided by Defence Force CE 1EException: accommodation provided to ministers of religion CE 1FTreatment of amounts derived by cross-border employees CE 2Benefits under employee share schemes CE 3Restrictions on disposal of shares under share purchase agreements CE 4Adjustments to value of benefits under share purchase agreements

Definitions

CE 5Meaning of expenditure on account of an employee CE 6Trusts are nominees CE 7Meaning of employee share scheme CE 7BMeaning of share scheme taxing date CE 7CMeaning of employee share scheme beneficiary CE 7CBMeaning of market value CE 7DMeaning of replacement employee share scheme CE 8Attributed income from personal services CE 9Restrictive covenants CE 10Exit inducements CE 11Proceeds from claims under policies of income protection insurance CE 12Tax credits for personal service rehabilitation payments

Income from living allowances, foreign superannuation, compensation, and government grants

CF 1Benefits, pensions, compensation, and government grants CF 2Remission of specified suspensory loans CF 3Withdrawals from foreign superannuation scheme

Recoveries

CG 1Amount of depreciation recovery income CG 2Remitted amounts CG 2BRemitted amounts on discharge from bankruptcy CG 2CRemitted and other amounts: companies in liquidation CG 2DRemitted and other amounts: companies leaving groups CG 2ERemitted and other amounts: income apportionment CG 3Bad debt repayment CG 4Receipts for expenditure or loss from insurance, indemnity, or otherwise CG 5Recoveries or receipts by employers from superannuation schemes CG 5BReceipts from insurance, indemnity, or compensation for interruption or impairment of business activities CG 6Receipts from insurance, indemnity, or compensation for trading stock CG 7Recoveries after deduction of payments under lease CG 7BDisposals or applications after earlier deductions CG 7CDisposal or rerecognition of derecognised non-depreciable assets CG 8Capital contributions CG 8BRecoveries after deductions for high-priced bloodstock removed from New Zealand CG 8CRecoveries after deductions for high-priced bloodstock disposed of to non-residents CG 9Recovery of deductions for aircraft engine overhaul

Adjustments

CH 1Adjustment for closing values of trading stock, livestock, and excepted financial arrangements CH 2Adjustment for prepayments CH 3Adjustment for deferred payment of employment income CH 4Adjustment for change to accounting practice CH 5Adjustment for GST CH 5BAdjustments for certain flat-rate credits under platform economy rules CH 6Adjustments for certain finance and operating leases CH 7Adjustment for avoidance arrangements CH 8Market value substituted CH 9Interest apportionment: excess debt entity CH 10Interest apportionment: reporting bank CH 10BInterest apportionment: public project debt

Expenditure other than for entities’ purposes

CH 11Te Awa Tupua and Te Pou Tupua CH 11BTe Kāhui Tupua and Te Tōpuni Kōkōrangi CH 11CTe Ture Whakatupua mō Te Kāhui Tupua 2025/Taranaki Maunga Collective Redress Act 2025 asset management company CH 12Income from hybrid mismatch arrangement CH 13Feasibility expenditure clawback

Income from voluntary activities

CO 1Income from voluntary activities

Income from portfolio investment entities

CP 1Attributed income of investors in multi-rate PIEs

Attributed income from foreign equity

CQ 1Attributed controlled foreign company income CQ 2When attributed CFC income arises CQ 3Calculation of attributed CFC income CQ 4Foreign investment fund income CQ 5When FIF income arises CQ 6Calculation of FIF income CQ 7Treatment of attributing interests subject to returning share transfer

Income from insurance

CR 1Policyholder base income of life insurer CR 2Shareholder base income of life insurer CR 3Income of non-resident general insurer CR 3BLloyd’s of London: income from life insurance premiums CR 4Income for general insurance outstanding claims reserve

Superannuation funds

CS 1Withdrawals CS 2Exclusions of withdrawals of various kinds CS 3Exclusion of withdrawal on grounds of hardship CS 4Exclusion of withdrawal to settle division of relationship property CS 5Exclusion of withdrawal paid as annuity or pension CS 6Exclusion of withdrawal on partial retirement CS 7Exclusion of withdrawal when member ends employment CS 8Exclusion of withdrawal when member ends employment: lock-in rule CS 9Exclusion of withdrawal from defined benefit fund when member ends employment CS 10When member treated as not ending employment CS 10BExclusion of permitted withdrawals from KiwiSaver schemes and complying superannuation funds CS 11Transfer by superannuation fund to another superannuation fund CS 12Transfer from superannuation scheme to superannuation fund CS 13Investment by superannuation fund in another superannuation fund CS 14Superannuation fund becomes superannuation scheme CS 15Superannuation fund becomes foreign superannuation scheme CS 16Superannuation scheme becomes superannuation fund CS 17Superannuation fund wound up CS 18Value of loan treated as fund income

Income from petroleum mining

CT 1Disposal of exploratory material or petroleum mining asset CT 2Damage to assets CT 3Exploratory well used for commercial production CT 4Partnership interests and disposal of part of asset CT 5Petroleum mining operations outside New Zealand CT 5BResuming commercial production CT 6Meaning of petroleum miner CT 6BMeaning of petroleum mining operations CT 7Meaning of petroleum mining asset

Income from mineral mining

CU 1Mineral miner's income CU 2Treatment of mining land CU 3Disposal of mineral mining assets CU 4Recovery of certain expenditure CU 5Partnership interests and disposal of part of asset

Definitions

CU 6Meaning of mineral miner CU 7Some definitions CU 8Meaning of listed industrial mineral CU 9Some definitions CU 10Mining asset used to derive income other than income from mining CU 11Meaning of asset for sections CU 3 to CU 10 CU 12Application of sections to resident mining operators CU 13Application of sections to non-resident mining operators CU 14Recovery of reinvestment profit on disposal of mining shares CU 15Recovery of reinvestment profit not used for mining purposes CU 16Recovery of reinvestment profit on repayment of loans CU 17Repayment by mining company of amount written off CU 18Amount treated as repayment for purposes of section CU 17: excess CU 19Amount treated as repayment for purposes of section CU 17: net income CU 20Mining company or mining holding company liquidated CU 21Meaning of income from mining CU 22Meaning of mining company CU 23Meaning of mining development expenditure CU 24Meaning of mining exploration expenditure CU 25Meaning of mining operations CU 26Meaning of mining venture CU 27Meaning of resident mining operator CU 28Meaning of specified mineral CU 29Other definitions

Income specific to certain entities

CV 1Group companies CV 2Consolidated groups: income of company in group CV 3Consolidated groups: arrangement for disposal of shares CV 4Amalgamated companies: amount derived after amalgamation CV 5Statutory producer boards CV 6Crown Research Institutes CV 7Australian wine producer rebate CV 8Regulations: Australian wine producer rebate CV 9Supplementary dividend holding companies CV 10Foreign dividend payment account companies or conduit tax relief companies CV 11Maori authorities CV 12Trustees: amounts received after person’s death CV 13Amounts derived from trusts CV 14Distributions from community trusts CV 15Amounts derived from trusts while person absent from New Zealand CV 16Non-resident shippers CV 17Non-exempt charities: taxation of tax-exempt accumulation CV 18Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests CV 19Additional income for certain imputation credits CV 20Employee share schemes

Exempt income

CW 1Forestry companies established by the Crown, Maori owners, and holding companies acquiring land with standing timber from founders CW 1BTreaty of Waitangi claim settlements: rights to take timber CW 2Forestry encouragement agreements CW 3Forestry companies and Maori investment companies CW 3BPre-1990 forest land units: emissions trading scheme CW 3CCertain partitions or subdivisions of land CW 4Annuities under life insurance policies CW 5Payments of interest: post-war credits CW 6Payments of interest: farm mortgages CW 7Foreign-sourced interest CW 8Money lent to government of New Zealand CW 8BCertain amounts derived from use of assets CW 9Dividend derived from foreign company CW 10Dividend within New Zealand wholly-owned group CW 10BDividends derived by council-controlled organisation holding companies CW 11Dividend of conduit tax relief holding company CW 12Proceeds of share disposal by qualifying foreign equity investor CW 13Proceeds from share or option acquired under venture investment agreement CW 14Dividends derived by qualifying companies CW 15Dividends paid by qualifying companies CW 16Allowance of Governor-General and other benefits and privileges CW 16BAccommodation expenditure: out-of-town secondments and projects CW 16CTime periods for certain accommodation expenditure CW 16DAccommodation expenditure: conferences and overnight stays CW 16EAccommodation expenditure: new employees CW 16FAccommodation expenditure: multiple workplaces CW 17Expenditure on account, and reimbursement, of employees CW 17BRelocation payments CW 17CPayments for overtime meals and certain other allowances CW 17CBPayments for certain work-related meals CW 17CCPayments for distinctive work clothing CW 17DPayments related to health or safety CW 18Allowance for additional transport costs CW 19Amounts derived during short-term visits CW 19BCertain amounts derived by employees during emergency events: exempt income CW 20Amounts derived by visiting entertainers including sportspersons CW 21Amounts derived by visiting crew of pleasure craft CW 22Amounts derived by overseas experts and trainees in New Zealand by government arrangement CW 23Income for military or police service in operational area CW 24Deferred military pay for active service CW 25Value of board for religious society members CW 26Jurors’ and witnesses’ fees CW 26BExempt ESS CW 26CMeaning of exempt ESS CW 26DMeaning of employee CW 26DBMeaning of market value CW 26EMeaning of normal retiring age CW 26FMeaning of share CW 26GMeaning of trustee CW 27Certain income derived by transitional resident CW 28Pensions CW 28BForeign superannuation withdrawal in initial period of residency CW 28CForeign superannuation withdrawal exceeding given amount CW 29Reinvested amounts from foreign superannuation schemes in Australia CW 29BAmounts from Australian complying superannuation schemes reinvested in KiwiSaver schemes CW 30Annuities from Crown Bank Accounts CW 31Services for members and former members of Parliament CW 32Maintenance payments CW 33Allowances and benefits CW 34Compensation payments CW 35Personal service rehabilitation payments CW 36Scholarships and bursaries CW 37Film production grants CW 38Public authorities CW 38BPublic purpose Crown-controlled companies CW 39Local authorities CW 39BAuckland Future Fund CW 40Local and regional promotion bodies CW 40BTe Urewera Board CW 40CTe Pou Tupua CW 40DTe Tōpuni Kōkōrangi CW 40ETe Ture Whakatupua mō Te Kāhui Tupua 2025/Taranaki Maunga Collective Redress Act 2025 asset management company CW 41Charities: non-business income CW 42Charities: business income CW 42BCommunity housing trusts and companies CW 43Charitable bequests CW 44Friendly societies CW 45Funeral trusts CW 46Bodies promoting amateur games and sports CW 47TAB NZ and racing clubs CW 48Income from conducting gaming-machine gambling CW 49Bodies promoting scientific or industrial research CW 50Veterinary services bodies CW 51Herd improvement bodies CW 52Community trusts CW 52BDisability support services CW 53Distributions from complying trusts CW 54Foreign-sourced amounts derived by trustees CW 55Maori authority distributions CW 55BATertiary education institutions and subsidiaries CW 55BAAFederation of Polytechnics Committee and industry skills boards CW 55BABRebate of fees paid by FIF CW 55BBMinors' income, to limited extent CW 55BCWater organisations CW 55BAmounts of exempt income for partners CW 56Non-resident aircraft operators CW 57Non-resident company involved in exploration and development activities CW 58Disposal of companies’ own shares CW 59New Zealand companies operating in Niue CW 59BIncome of and distributions by certain international funds CW 59CLife reinsurance claims from reinsurer outside New Zealand CW 60Stake money CW 61Providing standard-cost household service CW 62Interest paid under the KiwiSaver Act 2006 CW 62BVoluntary activities CW 62CIncome from foreign-currency loans used for disallowed residential property CW 63Avoidance arrangements CW 64Exemption under other Acts CW 65New Zealand Railways Corporation restructure: exempt income

Excluded income

CX 1Goods and services tax CX 1BTreatment of flat-rate credits under platform economy rules

Introductory provisions

CX 2Meaning of fringe benefit CX 3Excluded income CX 4Relationship with assessable income CX 5Relationship with exempt income

Fringe benefits

CX 6Private use of motor vehicle CX 7Employer or associated person treated as having right to use vehicle under arrangement CX 8Private use of motor vehicle: use by more than 1 employee CX 9Subsidised transport CX 10Employment-related loans CX 11Employment-related loans: loans by life insurers CX 12Services for members and former members of Parliament CX 13Contributions to superannuation schemes CX 14Contributions to sickness, accident, or death benefit funds CX 15Contributions to funeral trusts CX 16Contributions to life or health insurance CX 17Benefits provided to employees who are shareholders or investors CX 18Benefits provided to associates of both employees and shareholders

Exclusions and limitations

CX 19Benefits provided instead of allowances CX 19BTransport in vehicle other than motor vehicle CX 19CCertain public transport CX 19DCertain self-powered and low-powered vehicles and vehicle-share services CX 20Benefits to enable performance of duties CX 21Business tools CX 22Benefits to non-executive directors CX 23Benefits provided on premises CX 24Benefits related to health or safety CX 25Benefits provided by charitable organisations CX 26Non-liable payments CX 27Assistance with tax returns CX 28Accommodation CX 29Entertainment CX 30Distinctive work clothing CX 31Contributions to income protection insurance CX 32Services provided to superannuation fund CX 33Goods provided at discount by third parties CX 33BBenefits for members of Parliament

Definitions

CX 34Meaning of emergency call CX 35Meaning of employee share loan CX 36Meaning of private use CX 37Meaning of unclassified benefit CX 38Meaning of work-related vehicle CX 39Life insurers and fully reinsured persons CX 40Superannuation fund deriving amount from life insurance policy CX 41Resident insurance underwriters CX 42Disposal of ownership interests in controlled petroleum mining entities CX 43Farm-out arrangements for mining operations CX 44Disposal of mining shares CX 45Disposal of mining shares acquired with reinvestment profit CX 46Repayment of loans made from reinvestment profit CX 47Government grants to businesses CX 48Amounts remitted as condition of new start grant CX 48BIssue of post-1989 forest land units CX 48CGovernment funding additional to government screen production payments CX 48DTax credits for expenditure on research and development CX 49Employer’s superannuation contributions CX 50Tax credits for KiwiSaver and complying superannuation funds CX 50BContributions to retirement savings schemes CX 51Income equalisation schemes CX 51BDisposal of pre-1990 forest land emissions units CX 51CDisposal of fishing quota emissions units CX 52Refund from environmental restoration account CX 53Credits for inflation-indexed instruments CX 54Share-lending collateral under share-lending arrangements CX 54BTransfers of emissions units under certain excepted financial arrangements CX 55Proceeds from disposal of investment shares CX 55BProceeds from disposal of certain shares and financial arrangements CX 56Attributed income of certain investors in multi-rate PIEs CX 56BDistributions to investors in multi-rate PIEs CX 56CDistributions to investors by listed PIEs CX 57Credits for investment fees CX 57BAmounts derived during periods covered by calculation methods CX 58Amounts derived by minors from trusts CX 58BAmounts derived by certain close companies from trusts CX 59Taxable distributions from non-complying trusts CX 60Intra-group transactions CX 61Avoidance arrangements CX 62Amounts of excluded income for partners CX 63Dividends derived after company ceased to be look-through company CX 63BAmounts of excluded income for owners CX 64Income from financial instrument CX 65Tax credits paid in cash

Terminating provisions

CZ 1Grandparented shares under employee share schemes CZ 2Mining company’s 1970–71 tax year CZ 3Exchange variations on 8 August 1975 CZ 4Mineral mining: company making loan before 1 April 1979 CZ 5Exempt interest: overseas money lent to government or local or public authority before 29 July 1983 CZ 6Commercial bills before 31 July 1986 CZ 7Primary producer co-operative companies: 1987–88 income year CZ 8Farm-out arrangements for petroleum mining before 16 December 1991 CZ 9Available capital distribution amount: 1965 and 1985–1992 CZ 9BAvailable capital distribution amount: 1988 to 2010 CZ 10Transitional relief for calculation of attributed repatriation dividends: 2 July 1992 CZ 11Recovery of deductions for software acquired before 1 April 1993 CZ 12General insurance with risk period straddling 1 July 1993 CZ 13Treatment of units and interests in unit trusts and group investment funds on issue as at 1 April 1996 CZ 14Treatment of superannuation fund interests in group investment funds on 1 April 1999 CZ 15Accident insurance contracts before 1 July 2000 CZ 16Interest payable to exiting company: 2001 CZ 17Dividend of exiting company: 2001 CZ 18Benefit provider approved within 6 months of 25 November 2003 CZ 19Community trust receipts in 2004–05 or 2005–06 tax year CZ 20Disposal of personal property lease asset under specified lease CZ 21Superannuation fund loans made to members before 1 April 1989 CZ 21BOptional treatment of withdrawals from foreign superannuation schemes not included in return or assessed before 1 April 2014 CZ 22Geothermal wells between 31 March 2003 and 17 May 2006 CZ 23Insurance or compensation for buildings replaced as revenue account property affected by Canterbury earthquakes CZ 23Employee benefits for Canterbury earthquake relief: exempt income CZ 23BEmployee benefits for North Island flooding events: exempt income CZ 24Employee benefits for Canterbury earthquake relief: not fringe benefits CZ 24BEmployee benefits for North Island flooding events relief: not fringe benefits CZ 25Land and buildings as revenue account property affected by Canterbury earthquakes and replaced—insurance or compensation, Government purchase CZ 25BLand and buildings as revenue account property affected by Hurunui/Kaikōura earthquakes and replaced—insurance or compensation CZ 25CLand or buildings as revenue account property affected by North Island flooding events and replaced—insurance or compensation CZ 25DImprovements to farmland and horticultural plants affected by North Island flooding events and replaced—insurance or compensation CZ 26Land and buildings affected by Canterbury earthquakes—sections CB 9 to CB 11 and CB 14 overridden for Crown purchases CZ 26BLand and buildings affected by North Island adverse weather event—sections CB 6A and CB 9 to CB 11 overridden for local authority and Crown purchases CZ 27Prior bad debt deductions clawback CZ 28Transitional provision for mineral mining: previously appropriated mining expenditure CZ 29Accommodation expenditure: Canterbury earthquake relief CZ 29BAccommodation expenditure: North Island flooding events CZ 30Transitional provision: application of certain accommodation provisions CZ 31Accommodation expenditure: New Zealand Defence Force CZ 32Treatment of certain petroleum storage facilities CZ 33Transitional exception for accommodation provided to ministers of religion CZ 34Income arising from tax accounting provision for aircraft engine overhauls CZ 35Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years CZ 35Amounts derived by Te Kōwhatu Tū Moana CZ 36Treatment of backdated payments for social rehabilitation: 2008–09 to 2017–18 income years CZ 37Income equalisation schemes CZ 38Disposals of trading stock to non-associates without business purpose CZ 39Disposal within 5 years: bright-line test for residential land: acquisition on or after 29 March 2018 CZ 40Main home exclusion for bright-line: acquisition on or after 29 March 2018 CZ 41Distributions to supplying shareholders of Fonterra: 2022–23 to 2024–25 income years

Part D:
Deductions

General rules

DA 1General permission DA 2General limitations DA 3Effect of specific rules on general rules DA 4Treatment of amount of depreciation loss DA 5Treatment of expenditure for commercial fit-out

Specific rules for expenditure types

DB 1Taxes, other than GST, and penalties DB 2Goods and services tax DB 3Determining tax liabilities DB 3BUse of money interest DB 4Chatham Islands dues DB 4BFees to purchase funds in tax pooling accounts DB 5Transaction costs: borrowing money for use as capital DB 6Interest: not capital expenditure DB 7Interest: most companies need no nexus with income DB 8Interest: money borrowed to acquire shares in group companies DB 9Interest incurred on money borrowed to acquire shares in qualifying companies DB 10Interest or expenditure connected to profit-related debentures DB 10BInterest or expenditure connected to stapled debt security DB 11Negative base price adjustment DB 12Base price adjustment under old financial arrangements rules DB 13Repayment of debt in certain circumstances DB 14Security payment DB 15Sureties DB 16Share-lending collateral under share-lending arrangements DB 17Replacement payments and imputation credits under share-lending arrangements DB 17BTransfers of emissions units under certain excepted financial arrangements DB 18AASquare metre rate method DB 18ARing-fenced allocations: disposal of residential land within 5 years DB 18ABDeduction cap: disposal of residential land within 5 years to associated persons DB 18Transaction costs: leases DB 19Expenses in application for resource consent DB 20Destruction of temporary building DB 20BConsideration for agreement to grant, renew, extend, or transfer leasehold estate or licence DB 20CConsideration for agreement to surrender leasehold estate or terminate licence DB 21Amounts paid for non-compliance with covenant for repair DB 22Amounts paid for non-compliance and change in use DB 22BAmounts paid for commercial fit-out for building DB 23Cost of revenue account property DB 23BRevenue account property: certain intra-group transactions DB 23CRevenue account property: cost of some residential land reduced DB 24Share losses DB 25Cancellation of shares held as revenue account property DB 26Amount from profit-making undertaking or scheme and not already in income DB 27Amount from major development or division and not already in income DB 28Amount from land affected by change and not already in income DB 29Apportionment when land acquired with other property DB 30Cost of certain minerals DB 31Bad debts DB 32Bad debts owed to estates DB 33Scientific research DB 34Research or development DB 35Some definitions DB 36Patent expenses DB 37Expenses in application for patent or design registration DB 38Patent rights: devising patented inventions DB 39Patent rights acquired before 1 April 1993 DB 40Patent applications or patent rights acquired on or after 1 April 1993 DB 40BAExpenses in application for plant variety rights DB 40BExpenditure in unsuccessful development of software DB 41Charitable or other public benefit gifts by company DB 42Property misappropriated by employees or service providers DB 43Making good loss from misappropriation by partners DB 44Restitution of stolen property DB 45Bribes DB 46Avoiding, remedying, or mitigating effects of discharge of contaminant or making of noise DB 47Payments for remitted amounts DB 48Restrictive covenant breached DB 49Adjustment for opening values of trading stock, livestock, and excepted financial arrangements DB 50Adjustment for prepayments DB 51Adjustment for deferred payment of employment income DB 51BAdjustments for leases that become finance leases DB 51CNZ IFRS 16 leases DB 52Adjustment for change to accounting practice DB 53Attributed PIE losses of certain investors DB 54No deductions for fees relating to interests in multi-rate PIEs DB 54BExpenditure incurred by foreign investment PIEs DB 54CCertain expenditure incurred by foreign PIE equivalents DB 55Expenditure incurred in deriving exempt dividend DB 56Expenditure incurred in operating motor vehicle under agreement or arrangement affected by section CX 7 DB 57Payments to spouses, civil union partners, or de facto partners other than for services DB 57BMatching of deductions and income from multi-jurisdictional arrangements DB 58Adjustment for avoidance arrangements DB 59Market value substituted DB 60Acquisition of emissions units DB 60BLiabilities for emissions DB 61Surrender of certain emissions units for post-1989 forest land emissions DB 62Deduction for legal expenses DB 63Expenses in paying dividends DB 63BPeriodic company registration fees DB 63CMeetings of shareholders DB 64Capital contributions DB 65Allowance for certain commercial buildings DB 65BAllowance for embedded fit-out of certain commercial buildings DB 66Feasibility expenditure: spread deduction DB 67Feasibility expenditure: immediate deduction DB 68Amounts paid for utilities distribution assets DB 69Amount of resale royalty retained by collection agency DB 70Deduction for interruption expenditure due to emergency event

Employee or contractor expenditure

DC 1Lump sum payments on retirement DC 2Pension payments to former employees DC 3Pension payments to former partners DC 3BPayments to working owners DC 4Payments to working partners DC 5Payments to spouses, civil union partners, or de facto partners: services DC 6Contributions to employees’ benefit funds DC 7Contributions to employees’ superannuation schemes DC 8Attribution of personal services DC 9Restrictive covenants or exit inducements DC 10Disposal of business: transferred employment income obligations DC 11Transfers of employment income obligations to associates DC 12Loans to employees under share purchase schemes DC 13Criteria for approval of share purchase schemes: before period of restriction ends DC 14Criteria for approval of share purchase schemes: when period of restriction ends DC 15Some definitions

Entertainment expenditure

DD 1Entertainment expenditure generally DD 2Limitation rule DD 3When limitation rule does not apply DD 4Employment-related activities DD 5Promoting businesses, goods, or services DD 6Entertainment as business or for charitable purpose DD 7Entertainment outside New Zealand DD 8Entertainment that is income or fringe benefit DD 9Relationship with fringe benefit tax rules DD 10Interpretation: reimbursement and apportionment DD 11Some definitions

Motor vehicle expenditure

DE 1What this subpart does DE 2Deductions for business use DE 2BElection to use kilometre rate method or costs method DE 3Methods for calculating proportion of business use DE 4Default method for calculating proportion of business use DE 5Actual records DE 6Using logbook for test period DE 7Logbook requirements DE 8Logbook term DE 9Inadequate logbook DE 10Variance during logbook term DE 11Replacement vehicles DE 12Kilometre rate method

Government grants, funding, and compensation

DF 1Government grants to businesses DF 2Repayment of grant-related suspensory loans DF 3Identifying expenditure for purposes of sections DF 1 and DF 2 DF 4Payments for social rehabilitation DF 5Government funding additional to government screen production payments

Expenditure related to use of certain assets

DG 1What this subpart does DG 2Application of this subpart DG 3Meaning of asset for this subpart DG 4Meaning of private use for this subpart DG 5Meaning and treatment of interest expenditure for this subpart DG 6Associated persons: company rule modified DG 7Expenditure related to income-earning use DG 8Expenditure limitation rule DG 9Apportionment formula DG 10Interest expenditure rules DG 11Interest expenditure: close companies DG 12Interest expenditure: group companies DG 13Interest expenditure: corporate shareholders DG 14Interest expenditure: non-corporate shareholders DG 15Quarantined expenditure rules DG 16Quarantined expenditure when asset activity negative DG 17Allocation of amounts quarantined under section DG 16 DG 18Quarantined expenditure: group companies and shareholders DG 19Allocation of amounts quarantined under section DG 18 DG 20When income cannot be separately attributed DG 21Opting out of treatment under this subpart DG 22Application of rules to part years

Interest incurred in relation to certain land

DH 1Interest related to certain land DH 2When this subpart applies DH 3When this subpart applies: companies DH 4When this subpart does not apply: exemptions for new builds, development, social or emergency or transitional housing, and council housing DH 5Key terms DH 6Interposed residential property percentage DH 7Grandparented residential interest DH 8Deduction not allowed DH 9Exception to limited denial of deductions: loans denominated in foreign currencies DH 10Limited denial of deductibility: simplified calculation of interest affected DH 11Denied amounts: treatment upon disposal of disallowed residential property DH 12Valuation

New investment assets

DI 1New investment assets DI 2When this subpart applies and does not apply DI 3Meaning of new asset transferee DI 4Meaning of new investment asset DI 5New investment asset deduction DI 6Relationship to cost, calculations, etc, in other provisions

Attributed losses from foreign equity

DN 1Attributed controlled foreign company loss DN 2When attributed CFC loss arises DN 3Calculation of attributed CFC loss DN 4Ring-fencing cap on deduction DN 5Foreign investment fund loss DN 6When FIF loss arises DN 7Calculation of FIF loss DN 8Ring-fencing cap on deduction: attributable FIF income method DN 9Treatment of certain costs incurred in acquiring FIF interests

Farming and aquacultural business expenditure

DO 1Enhancements to land DO 2Plantings for erosion, shelter, and water protection purposes DO 3Trees on farms DO 4Improvements to farm land DO 5Expenditure on land: planting of listed horticultural plants DO 6Expenditure on land: horticultural replacement planting DO 7Accounting for expenditure on listed horticultural plants under sections DO 5 and DO 6 DO 8Meaning of planting and plot DO 9Meaning of replaced area fraction DO 9BMeaning of diminished value DO 10Farming or horticulture expenditure of lessor or sublessor DO 11Improvement destroyed or made useless DO 11BEntering partners’ livestock deduction DO 12Improvements to aquacultural business DO 13Improvement destroyed or made useless

Forestry expenditure

DP 1Expenditure of forestry business DP 2Plant or machinery DP 3Improvements to forestry land DP 4Improvement destroyed or made useless DP 5Forestry encouragement agreement: deductions DP 6Forestry encouragement agreement: no deduction DP 7Land contouring: no deduction DP 8Forestry business on land acquired from the Crown, Maori owners, or holding company: no deduction DP 9Cost of acquiring timber: forestry business on land acquired from the Crown, Maori owners, or holding company DP 9BTreaty of Waitangi claim settlements: rights to take timber DP 10Cost of acquiring timber or right to take timber: other cases DP 11Cost of timber

Income equalisation schemes and environmental restoration accounts schemes

DQ 1Main income equalisation scheme DQ 2Adverse event income equalisation scheme DQ 3Thinning operations income equalisation scheme DQ 4Environmental restoration accounts scheme

Life insurance business expenditure

DR 1Policyholder base allowable deduction of life insurer DR 2Shareholder base allowable deduction of life insurer DR 3Life reinsurance premiums to reinsurer outside New Zealand DR 4Life insurers' claims

Film industry expenditure

DS 1Acquiring film rights DS 2Film production expenditure DS 2BExpenditure when film or film right intended for disposal DS 3Clawback of deductions for film reimbursement schemes DS 4Meaning of film reimbursement scheme

Petroleum mining expenditure

DT 1ARing-fenced allocations DT 1Petroleum exploration expenditure DT 2Arrangement for petroleum exploration expenditure and disposal of property DT 3Acquisition of privileges and permits DT 4Acquisition of exploratory material DT 5Petroleum development expenditure DT 6Expenditure on petroleum mining assets DT 7Exploratory well expenditure DT 7BResuming commercial production: petroleum development expenditure DT 8Acquisition of certain petroleum mining assets DT 9Disposal of petroleum mining asset to associate DT 10Disposal of petroleum mining asset outside association DT 11Association ending DT 12Damage to assets DT 13Disposal of ownership interests in controlled petroleum mining entities DT 14Farm-out arrangements DT 15Persons associated with petroleum miner DT 16Decommissioning DT 17Attribution of expenditure DT 18Replacement permits DT 19Partnership interests and disposal of part of asset DT 20Petroleum mining operations outside New Zealand

Mineral mining expenditure

DU 1Mining expenditure: prospecting and exploration expenditure DU 2Mining expenditure: rehabilitation expenditure DU 3Acquisition of land for mining operations DU 4Acquisition of mineral mining assets DU 5Farm-out arrangements DU 6Deduction for certain mining expenditure spread over assumed life of mine DU 7Deduction for certain mining expenditure spread on basis of units of production

Classes of mining expenditure

DU 8Classes of mineral mining expenditure DU 9Some definitions DU 10Meaning of mining exploration expenditure DU 11Meaning of mining development expenditure: exclusion of operational expenditure DU 12Meaning of mining rehabilitation expenditure

Expenditure specific to certain entities

DV 1Publicising superannuation funds DV 2Transfer of expenditure to master fund DV 3Formula for calculating maximum deduction DV 4Carry forward of expenditure DV 4BCarry forward of expenditure by member funds investing in portfolio investment entities DV 5Investment funds: transfer of expenditure to master funds DV 6Formula for calculating maximum deduction DV 7Carry forward of expenditure DV 8Non-profit organisations DV 9Trusts DV 10Building societies DV 11Distribution to member of co-operative company, excluded from being dividend DV 12Maori authorities: donations DV 13Group companies DV 14Amalgamated company: expenditure on improvements for farming, horticultural, aquacultural, and forestry businesses DV 15Amalgamated companies: property passing on resident’s restricted amalgamation DV 16Consolidated groups: intra-group transactions DV 17Consolidated groups: expenditure or loss incurred by group companies DV 18Statutory producer boards and co-operative companies DV 18BCost base for shares when debt remitted within economic group DV 19Association rebates DV 20Partners DV 21Losses for QCs entering partnership regime DV 22Owners of look-through companies DV 23Losses for QCs entering look-through companies rules DV 24Losses for QCs becoming sole traderships DV 25Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests DV 26Deduction for reinstatement of R&D tax losses DV 27Employee share schemes DV 28Exempt employee share schemes

Expenditure specific to certain industries

DW 1Airport operators DW 2Bloodstock racing DW 3Non-resident general insurers and shippers DW 3BLloyd’s of London: deductions for life insurance business DW 4Deduction for general insurance outstanding claims reserve DW 5Aircraft operators: aircraft engines and aircraft engine overhauls DW 6Aircraft operators: payments and adjustments under finance leases

Other expenditure

DX 1Testamentary annuities DX 2Tax credits: conduit financing arrangements DX 3Tax credits: supplementary dividend holding companies

Terminating provisions

DZ 1Commercial bills before 31 July 1986 DZ 2Life insurers acquiring property before 1 April 1988 DZ 3Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991 DZ 4Expenditure on abandoned exploratory well before 16 December 1991 DZ 5Farm-out arrangements for petroleum mining before 16 December 1991 DZ 6Partnership interests and disposal of part of asset before 16 December 1991 DZ 7Petroleum mining operations outside New Zealand before 16 December 1991 DZ 8Acquiring patent rights before 1 April 1993 DZ 9Premium paid on land leased before 1 April 1993 DZ 10General insurance with risk period straddling 1 July 1993 DZ 11Film reimbursement scheme on or before 30 June 2001 DZ 12Mineral mining: 1954–2005 DZ 13Enhancements to land unamortised at end of 2004–05 year DZ 14Deductions under specified leases DZ 15Patent applications before 1 April 2005 DZ 16Geothermal wells between 31 March 2003 and 17 May 2006 DZ 17Expenditure on improvements to aquacultural business before 1995–96 income year DZ 18Expenditure on improvements to forestry land before 1995–96 income year DZ 19Attributed CFC loss carried back under section EZ 32C DZ 20Expenditure incurred while income-earning activity interrupted by Canterbury earthquake DZ 20BExpenditure incurred while income-earning activity interrupted by North Island flooding event DZ 21Transfer in 2013–14 income year of assets to which subpart DG applies DZ 22Aircraft maintenance: aircraft engines acquired before 2017–18 income year DZ 23Aircraft maintenance: tax accounting provisions for expenditure incurred after 2016–17 income year DZ 24Amounts denied before 1 April 2025: treatment upon disposal of certain residential property

Part E:
Timing and quantifying rules

Matching rules: revenue account property, prepayments, and deferred payments

EA 1Trading stock, livestock, and excepted financial arrangements EA 2Other revenue account property EA 3Prepayments EA 4Deferred payment of employment income EA 5Income from disposal of original shares under share-lending arrangements

Valuation of trading stock (including dealer’s livestock)

EB 1When this subpart applies EB 2Meaning of trading stock EB 3Valuation of trading stock EB 4Trading stock valuation methods EB 5Transfers of trading stock within wholly-owned groups EB 6Cost EB 7Cost allocation: cost-flow method EB 8Cost allocation: budgeted method or standard cost method EB 9Discounted selling price EB 10Replacement price EB 11Market selling value EB 12Valuing closing stock consistently EB 13Low-turnover valuation EB 14Low-turnover valuation methods EB 15Cost for low-turnover traders EB 16Cost allocation: cost-flow method for low-turnover traders EB 17Costs: manufactured or produced stock of low-turnover traders EB 18Costs: other stock of low-turnover traders EB 19Discounted selling price for low-turnover traders EB 20Replacement price for low-turnover traders EB 21Market selling value for low-turnover traders EB 22Valuing closing stock consistently for low-turnover traders EB 23Valuing closing stock under $10,000 EB 24Apportionment on disposal of business assets that include trading stock

Valuation of livestock

EC 1Application of this subpart EC 2Valuation of livestock EC 3Livestock valuation methods EC 4Transfers of livestock within wholly-owned groups EC 4BCompulsory use of herd scheme method for associated persons EC 4CValue and timing of transfers EC 5Transfer of livestock because of self-assessed adverse event EC 6Application of sections EC 7 to EC 27 EC 7Valuation methods EC 8Restrictions arising from use of herd scheme EC 9Restrictions on use of national standard cost scheme EC 10Restrictions on use of cost price method EC 11Restrictions on making of elections EC 12Interests in livestock EC 13Changes in partnership interests

Herd scheme

EC 14Herd scheme EC 15Determining national average market values EC 16Valuation under herd scheme EC 17Herd value ratio EC 18Inaccurate herd value ratio EC 19Chatham Islands adjustment to herd value EC 20Herd livestock disposed of before values determined EC 21Herd livestock on death before values determined

National standard cost scheme

EC 22National standard cost scheme EC 23Determining national standard costs EC 24Methods for determining costs using national standard cost scheme

Other methods

EC 25Cost price, replacement price, or market value EC 26Bailee’s treatment of livestock EC 26BEntering partners' cost base

Definitions

EC 27Some definitions EC 28Application of sections EC 29 to EC 31 EC 29Determining standard values EC 30Closing value methods EC 31Enhanced production EC 32Application of sections EC 33 to EC 37 EC 33Determining depreciation percentages EC 34General rule EC 35Livestock reaching national average market value and livestock no longer used for breeding EC 36Immature livestock and recently acquired livestock EC 37Bailment EC 38Application of sections EC 39 to EC 48 EC 39First income year in breeding business EC 39BStud-founding bloodstock and related terms EC 39CSetting and publication of national minimum price threshold EC 40Later income years in breeding business EC 41Reduction: bloodstock not previously used for breeding in New Zealand other than as shuttle stallions EC 42Reduction: bloodstock previously used for breeding in New Zealand EC 43Accident, birth deformity, or infertility EC 44Other bloodstock EC 45Residual value of bloodstock EC 46Use of bloodstock for racing EC 47Change of use of bloodstock in course of business EC 47BRemoval of high-priced bloodstock from New Zealand after earlier deductions EC 47CWhen prospective breeders treated as being in breeding business EC 47DChange of prospective bloodstock breeders’ expectation or intention after earlier deductions EC 47EProspective breeders commencing actual breeding businesses EC 48Replacement breeding stock

Valuation of excepted financial arrangements

ED 1Valuation of excepted financial arrangements ED 1BValuation of emissions units issued for zero price ED 2Transfers of certain excepted financial arrangements within wholly-owned groups ED 2BTransfers to shareholders by ASX-listed Australian company of shares in subsidiary ED 3Part-year tax calculations for transfers: general insurance OCR ED 4Valuation of certain excepted financial arrangements denominated in foreign currency

Depreciation

EE 1What this subpart does EE 2Nature of ownership of item EE 3Ownership of goods subject to reservation of title EE 4Ownership of lessee’s improvements: lessee EE 5Ownership of lessee’s improvements: other person EE 6What is depreciable property?EE 7What is not depreciable property?EE 8Election that property not be depreciable EE 9Description of elements of calculation EE 10Calculation rule: item temporarily not available EE 11Calculation rule: income year in which item disposed of EE 12Depreciation methods EE 13Application of sections EE 14 to EE 19 EE 14Diminishing value or straight-line method: calculating amount of depreciation loss EE 15Amount of adjusted tax value EE 16Amount resulting from standard calculation EE 17Amount resulting from petroleum-related depreciable property calculation EE 18Cost: change from diminishing value to straight-line method EE 18BCost: some depreciable intangible property EE 19Cost: fixed life intangible property EE 20Application of sections EE 21 to EE 24 EE 21Pool method: calculating amount of depreciation loss EE 22Cases affecting pool EE 23Combined pools EE 24Property ceasing to qualify for pool EE 25Depreciation loss for plant variety rights application granted in 2005–06 or later income year EE 26Setting of economic depreciation rate EE 27Economic rate for certain depreciable property EE 28Economic rate for buildings EE 29Economic rate for certain aircraft and motor vehicles EE 30Economic rate for plant, equipment, or building, with high residual value EE 31Annual rate for item acquired in person’s 1995–96 or later income year EE 32Election in relation to certain depreciable property acquired on or after 1 April 2005 EE 33Annual rate for fixed life intangible property EE 34Annual rate for patent granted in 2005–06 or later income year EE 34BAnnual rate for design registrations EE 35Special rate or provisional rate EE 36Using economic rate or provisional rate instead of special rate EE 37Improvements EE 38Items of low value EE 39Items no longer used EE 40Transfer of depreciable property on or after 24 September 1997 EE 41Transfer of depreciable property on certain amalgamations on or after 14 May 2002 EE 42Transfer of radiocommunications licence right on or after 24 September 1997 EE 43Transfer of depreciable intangible property on or after 1 July 1997 EE 44Application of sections EE 48 to EE 51 EE 45Consideration for purposes of section EE 44 EE 46Items for purposes of section EE 44 EE 47Events for purposes of section EE 44 EE 48Effect of disposal or event EE 49Amount of depreciation recovery income when item partly used for business EE 50Amount of depreciation loss when item partly used to produce income EE 51Amount of depreciation recovery income when lost or stolen items recovered EE 52Amount of depreciation recovery income when compensation received EE 53Unused geothermal well brought into use EE 54Cost: GST

Adjusted tax value

EE 55Meaning of adjusted tax value EE 56Formula EE 57Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies EE 58Base value in section EE 56 when no previous deduction EE 59Base value in section EE 56 when property is petroleum-related depreciable property EE 60Total deductions in section EE 56

Definitions

EE 61Meaning of annual rate EE 62Meaning of depreciable intangible property EE 63Meaning of estimated useful life EE 64Meaning of excluded depreciable property EE 65Meaning of maximum pooling value EE 66Meaning of poolable property EE 67Other definitions

Taxes and levies

EF 1Fringe benefit tax EF 2Employer’s superannuation contribution tax EF 3Accident compensation levies and premiums EF 4Use of money interest payable by Commissioner EF 5Use of money interest payable by person EF 6Different tax years

Recognition of accounting treatment

EG 1Election to use balance date used in foreign country EG 2Adjustment for changes to accounting practice EG 3Allocation of income, deductions, and tax credits by portfolio tax rate entity

Income equalisation schemes

EH 1Income equalisation schemes EH 2Deposits to be paid into Crown Bank Account

Application

EH 3Persons to whom main income equalisation scheme applies

Deposits and accounts

EH 4Main deposit EH 5Main income equalisation account

Interest

EH 6Interest on deposits in main income equalisation account

Deduction

EH 7Deduction of deposit

Refunds: automatic

EH 8Refund of excess deposit EH 9Income does not include excess deposit EH 10Refund at end of 5 years EH 11Income when refund given at end of 5 years

Refunds: on application

Refunds: general provisions

EH 27Amendment of assessment EH 28Minimum refund EH 29Deposits from which refunds come

Tax credit

EH 30When person entitled to tax credit EH 31Kind and amount of refund that entitles person to tax credit EH 32Kind of person entitled to tax credit EH 33Amount of tax credit

Definitions

EH 34Meaning of income from forestry EH 35Meaning of main maximum deposit EH 36Other definitions

Application

EH 37Persons to whom adverse event income equalisation scheme applies

Deposits and accounts

EH 38Adverse event deposit EH 39Adverse event income equalisation account

Interest

EH 40Interest on deposits in adverse event income equalisation account

Deduction

EH 41Deduction of deposit

Refunds: automatic

EH 42Refund of excess deposit EH 43Income does not include excess deposit

Refunds: on application

EH 44Application for refund by person, trustee of estate, Official Assignee, or liquidator EH 45Refund on application EH 46Income when refund given on application EH 47Refund on retirement EH 48Income when refund given on retirement, and election to allocate amount to earlier year EH 49Refund on death EH 50Income when refund given on death EH 51Income when refund given on death, and election to allocate amount to earlier year EH 52Income when refund given on death, and election to allocate amount to later year or years EH 53Refund on bankruptcy EH 54Income when refund given on bankruptcy EH 55Refund on liquidation EH 56Income when refund given on liquidation

Refunds: general provisions

EH 57Amendment of assessment EH 58Minimum refund EH 59Deposits from which refunds come

Transfers

EH 60Transfer of deposit

Definitions

EH 61Meaning of adverse event maximum deposit EH 62Other definitions

Application

EH 63Persons to whom thinning operations income equalisation scheme applies

Deposits and accounts

EH 64Thinning operations deposit EH 65Thinning operations income equalisation account

Interest

EH 66Interest on deposits in thinning operations income equalisation account

Deductions

EH 67Deduction of deposit

Refunds: automatic

EH 68Refund of excess deposit EH 69Income does not include excess deposit

Refunds: on application

EH 70Application for refund by person or liquidator EH 71Refund on application EH 72Income when refund given on application EH 73Refund for development or recovery EH 74Income when refund given for development or recovery EH 75Refund on liquidation EH 76Income when refund given on liquidation

Refunds: general provisions, and tax credits

EH 77Sections of main income equalisation scheme that apply to thinning operations income equalisation scheme

Definitions

EH 78Meaning of thinning operations maximum deposit EH 79Other definitions

Spreading of specific income

EI 1Spreading backward of income from timber EI 2Interest from inflation-indexed instruments EI 3Assigning or granting copyright EI 4Spreading income from patent rights EI 4BConsideration for agreement to grant, renew, extend, or transfer leasehold estate or licence EI 5Amount paid to lessor for non-compliance with covenant for repair EI 6Amount paid for non-compliance: when lessor ceases to own land EI 7Leases: income derived in anticipation EI 8Disposal of land to the Crown EI 9Matching rule for employment income of shareholder-employee

Spreading of specific expenditure

EJ 1Spreading backward of deductions for costs of timber EJ 2Spreading forward of deductions for repairs to fishing boats EJ 3Spreading forward of fertiliser expenditure EJ 4Expenditure incurred in acquiring film rights in feature films EJ 5Expenditure incurred in acquiring film rights in films other than feature films EJ 6Certification of New Zealand films EJ 7Film production expenditure for New Zealand films having no large budget film grant EJ 8Film production expenditure for other films having no large budget film grant EJ 9Avoidance arrangements EJ 10Personal property lease payments EJ 10BIFRS leases EJ 11Amount paid by lessee for non-compliance with covenant for repair EJ 12Petroleum development expenditure: default allocation rule EJ 12BPetroleum development expenditure: reserve depletion method EJ 13Permanently ceasing petroleum mining operations EJ 13BDry well drilled EJ 13CWell not producing EJ 14Spreading deduction backwards EJ 15Disposal of petroleum mining asset EJ 16Disposal of petroleum mining asset to associate EJ 17Partnership interests and disposal of part of asset EJ 18Petroleum mining operations outside New Zealand

Definitions

EJ 19Meaning of offshore development EJ 20Meaning of petroleum mining development EJ 20BCertain mining expenditure spread over assumed life of mine EJ 20CLength of spreading period EJ 20DMeasurement of assumed life of mine and application to rate EJ 20ECertain mining expenditure spread on basis of units of production EJ 21Contributions to employees’ superannuation schemes EJ 22Deductions for market development: product of research, development EJ 23Allocation of deductions for research, development, and resulting market development EJ 24Allocation of expenditure on aircraft engine overhauls EJ 25Allocation of expenditure on aircraft engine overhauls: election by IFRS user EJ 26Allocation of expenditure on aircraft engine overhauls: election by operator of single aircraft EJ 27Disposal of aircraft engine or aircraft

Environmental restoration accounts

EK 1Payment to Crown Bank Account EK 2Persons who may make payment to environmental restoration account EK 3Payments to environmental restoration account EK 4Environmental restoration account EK 5Details to be provided with payment to environmental restoration account EK 6Interest on payments to environmental restoration account EK 7Deduction for payment EK 8Deduction for transfer EK 9Refund of payment if excess, lacking details EK 10Certain refunds not income EK 11Application for refund EK 12Refund if application or excess balance EK 13Income when refund given on application EK 14Application for transfer EK 15Transfer on application EK 16Transfer on death, bankruptcy, or liquidation EK 17Minimum refund or transfer EK 18Payments from which refunds come EK 19Environmental restoration account of amalgamating company EK 20Environmental restoration account of consolidated group company EK 21Notices in electronic format EK 22Meaning of maximum payment EK 23Other definitions

Allocation of deductions for excess residential land expenditure

EL 1Outline of subpart: general EL 2Outline of subpart: specific provisions EL 3Definitions for this subpart EL 4Allocation of deductions for loss-making residential rental properties EL 5When residential portfolios sold EL 6Choosing to apply rules on property-by-property basis EL 7When property A sold EL 8Treatment of previously transferred amounts on fully-taxed disposals

Exclusions from rules

EL 9Main home exclusion EL 10Exclusion for land held on revenue account EL 11Exclusion for property held by certain persons and entities EL 12Exclusion for mixed-use assets EL 13Exclusion for property provided as employee accommodation

Application of rules by certain entities

EL 14Continuity rules for companies EL 15Transfers between companies in wholly-owned groups

Interposed entities

EL 16Interests in residential land-rich entities EL 17Calculations for section EL 16 EL 18Modifications when entities transparent EL 19Valuation of assets EL 20Allocation of deductions related to bright-line disposals of residential land

Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests

EM 1Australian non-attributing shares and attributing FDR method interests EM 2Who does this subpart apply to?EM 3What hedges does this subpart apply to?EM 4Elections EM 5Fair dividend rate hedge portions: hedge-by-hedge methods EM 5BFair dividend rate hedge portions: portfolio method EM 6Income and expenditure for fair dividend rate hedge portions EM 7Quarterly test of fair dividend rate hedge portions EM 8Some definitions

Financial arrangements rules

Consideration when financial arrangement involves property or services

EW 32Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease EW 33Consideration for hire purchase agreement or finance lease EW 33BForeign ASAPs: designated FX hedges EW 33CConsideration in foreign currency: some agreements for sale and purchase EW 33DForeign ASAPs: contingencies for business combinations EW 34Consideration in foreign currency EW 35Value relevant for non-financial arrangements rule

Consideration treated as paid to person

EW 36Consideration when person exits from rules: accrued entitlement EW 37Consideration when person enters rules: accrued obligation EW 38Consideration when disposal for no, or inadequate, consideration EW 39Consideration affected by unfavourable factors

Consideration treated as paid by person

Consideration when legal defeasance has occurred

EW 47Legal defeasance

Consideration for cessation of LTCs and dissolution of partnerships

EW 47BCessation of LTCs and dissolution of partnerships

Consideration when anti-avoidance provision applies

EW 48Anti-avoidance provisions EW 49Income and deduction when debt disposed of at discount to associate of debtor EW 49BGuarantees for associated persons EW 50Income when debt forgiven to trustee EW 51Deduction for security payment EW 52Share supplier under share-lending arrangement EW 52BExcepted financial arrangements involving pre-1990 forest land emissions units EW 53Adjustment required EW 54Meaning of cash basis person EW 55Effect of being cash basis person EW 56Natural person EW 57Thresholds EW 58Financial arrangements, income, and expenditure relevant to criteria EW 59Exclusion by Commissioner EW 60Trustee of deceased’s estate EW 61Election to use spreading method EW 62When and how calculation of cash basis adjustment required EW 63Cash basis adjustment formula

Controlled foreign company and foreign investment fund rules

When is a company a controlled foreign company?

EX 1Meaning of controlled foreign company

Calculation of person’s control interest

EX 2Four categories for calculating control interests EX 3Control interest: total of direct, indirect, and associated person interests EX 4Limits to requirement to include associated person interests EX 5Direct control interests EX 6Direct control interests include options and similar rights EX 7Indirect control interests

Calculation of person’s income interest

EX 8Income interests: total of direct and indirect interests EX 9Direct income interests EX 10Indirect income interests EX 11Options and similar rights in certain cases EX 12Reduction of total income interests EX 13Income interests of partners

Ten percent threshold and variations in income interest level

EX 14Attribution: 10% threshold, not PIE EX 15Associates and 10% threshold EX 16Income interests for certain purposes EX 17Income interest if variations within period

Calculation of attributed CFC income or loss

EX 18AScheme for finding person's attributed CFC income or loss EX 18Formula for calculating attributed CFC income or loss EX 19Taxable distribution from non-complying trust EX 20Reduction in attributed CFC loss

Attributable CFC amount and net attributable CFC income or loss

EX 20BAttributable CFC amount EX 20CNet attributable CFC income or loss EX 20DAdjustment of cost fraction for excessively debt funded CFC EX 20ERelative debt-asset ratio for CFC

Calculation of branch equivalent income or loss

EX 21Attributable CFC amount and net attributable CFC income or loss: calculation rules

Non-attributing active CFCs

EX 21BNon-attributing active CFCs

Tests for non-attributing active CFCs

EX 21CApplicable accounting standards for section EX 21E EX 21DNon-attributing active CFC: default test EX 21ENon-attributing active CFC: test based on accounting standard EX 21FPart-period calculations

Non-attributing Australian CFCs

EX 22Non-attributing Australian CFCs EX 23Tax concession grey list CFCs

Change of residence of companies

EX 24Companies moving to or from New Zealand

Change of CFC’s balance date

EX 25Change of CFC’s balance date

Ownership measurement concession

EX 26Use of quarterly measurement

Anti-avoidance rule: stapled stock

EX 27Anti-avoidance rule: stapled stock

What is a foreign investment fund?

EX 28Meaning of FIF

Attributing interests in FIFs

EX 29Attributing interests in FIFs EX 30Direct income interests in FIFs EX 31Exemption for ASX-listed Australian companies EX 32Exemption for Australian unit trusts with adequate turnover or distributions EX 33Exemption for Australian regulated superannuation savings EX 34CFC rules exemption EX 35Exemption for interest in FIF resident in Australia EX 36Venture capital company emigrating to grey list country: 10-year exemption EX 37Grey list company owning New Zealand venture capital company: 10-year exemption EX 37BShare in grey list company acquired under venture investment agreement EX 38Exemptions for employee share schemes EX 39Terminating exemption for grey list company with numerous New Zealand shareholders EX 40Foreign exchange control exemption EX 41Income interest of non-resident or transitional resident EX 42New resident’s accrued superannuation entitlement exemption EX 42BInterests in foreign superannuation scheme other than FIF superannuation interests EX 43Non-resident’s pension or annuity exemption

Calculation of FIF income or loss

EX 44Five calculation methods EX 45Exclusion of amounts of death benefit EX 46Limits on choice of calculation methods EX 47Method required for certain non-ordinary shares EX 47BMethod required for shares subject to certain returning share transfers EX 48Default calculation method EX 49Accounting profits method EX 50Attributable FIF income method EX 51Comparative value method EX 52AFair dividend rate method: use of different forms EX 52Fair dividend rate annual method EX 53Fair dividend rate periodic method EX 54Fair dividend rate method and cost method: when periods affected by share reorganisations EX 55Deemed rate of return method EX 56Cost method EX 57Conversion of foreign currency amounts: most methods EX 58Additional FIF income or loss if CFC owns FIF

Relationship with other provisions in Act

EX 59Codes: comparative value method, deemed rate of return method, fair dividend rate method, and cost method EX 60Top-up FIF income: deemed rate of return method EX 61Top-up FIF income: 1 April 1993 uplift interests

Changing calculation method

EX 62Limits on changes of method EX 63Consequences of changes in method

Cases of entry into and exit from FIF rules

EX 64Migration of persons holding FIF interests EX 65Changes in application of FIF exemptions EX 66Entities emigrating from New Zealand EX 66BEntities ceasing to be FIFs EX 67FIF rules first applying to interest on or after 1 April 2007 EX 67BRevaluation of inherited interests in grey list companies

Measurement of cost

EX 68Measurement of cost

Change of FIF’s balance date

EX 69Change of FIF’s balance date

Market value rules

EX 70Market value of life policy and superannuation entitlements EX 71Non-market transactions in FIF interests

Commissioner’s default assessment power

EX 72Commissioner’s default assessment power

Election relating to CFC or FIF

EX 73Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF

Life insurance rules

EY 1What this subpart does EY 2Policyholder base EY 3Shareholder base EY 4Apportionment of income of particular source or nature, and of tax credits EY 5Part-year tax calculations EY 6Actuarial advice and guidance EY 7Meaning of claim EY 8Meaning of life insurance EY 9Meaning of life insurance policy EY 10Meaning of life insurer EY 11Superannuation schemes providing life insurance EY 12Meaning of life reinsurance EY 13Meaning of life reinsurance policy EY 14Life insurance and life reinsurance: how sections relate

Non-participation policies

EY 15Policyholder base income: non-participation policies EY 16Policyholder base allowable deductions: non-participation policies EY 16BPolicyholder base allowable deductions: consideration for investment management services

Profit participation policies

EY 17Policyholder base income: profit participation policies EY 18Policyholder base allowable deductions: profit participation policies

Non-participation policies

EY 19Shareholder base income: non-participation policies EY 19BShareholder base income: consideration credited for investment management services EY 20Shareholder base allowable deductions: non-participation policies

Profit participation policies

EY 21Shareholder base income: profit participation policies EY 22Shareholder base allowable deductions: profit participation policies

Non-participation policies: reserves

EY 23Reserving amounts for life insurers: non-participation policies EY 24Outstanding claims reserving amount: non-participation policies not annuities EY 25Premium smoothing reserving amount: non-participation policies not annuities EY 26Unearned premium reserving amount: non-participation policies not annuities EY 27Capital guarantee reserving amount: non-participation policies not annuities

Shareholder base other profit: profit participation policies

EY 28Shareholder base other profit: profit participation policies that are existing business EY 29Shareholder base other profit: profit participation policies that are new business

Transitional adjustments and annuities

EY 30Transitional adjustments: life risk EY 31Annuities EY 32Mortality profit formula: when partial reinsurance exists EY 33Mortality profit formula: individual result may be negative only in some cases EY 34Mortality profit formula: negative result EY 35How discontinuance profit is calculated EY 36Discontinuance profit for income year EY 37Discontinuance profit formula (existing policies)EY 38Discontinuance profit formula (new policies)EY 39Discontinuance profit formula (existing policies): when partial reinsurance exists EY 40Discontinuance profit formula (new policies): when partial reinsurance exists EY 41Discontinuance profit formulas: individual result may never be negative EY 42How policyholder income is calculated EY 43Policyholder income formula EY 43BPolicyholder income formula: FDR adjustment EY 43CPolicyholder income formula: PILF adjustment EY 44Policyholder income formula: when partial reinsurance exists EY 45Policyholder income formula: when life insurance business transferred EY 46Income from disposal of property EY 47Deductions for disposal of property EY 48Non-resident life insurers with life insurance policies in New Zealand EY 49Non-resident life insurer becoming resident

Terminating provisions

EZ 1Life insurers acquiring property before 1 April 1988 EZ 2Deductions for disposal of property: 1982–83 and 1989–90 income years EZ 3Petroleum development expenditure from 1 October 1990 to 15 December 1991 EZ 4Valuation of livestock bailed or leased as at 2 September 1992 EZ 4BCattle destroyed because of Mycoplasma bovis: spreading EZ 5Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006 EZ 6Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006 EZ 6BNational minimum price threshold for 2019 calendar year EZ 7Acquiring patent rights before 1 April 1993 EZ 8Premium paid on land leased before 1 April 1993 EZ 8BDisposal of land to the Crown EZ 9Pool method for items accounted for by globo method for 1992–93 income year EZ 10Pool items accounted for by globo method for 1992–93 income year EZ 11Amounts of depreciation recovery income and depreciation loss for part business use up to 2004–05 income year EZ 12Amount of depreciation loss for item acquired from associated person on or before 23 September 1997 EZ 13Annual rate for item acquired on or after 1 April 1993 and before end of person’s 1994–95 income year EZ 14Pre-1993 depreciation rate EZ 15Annual rate for excluded depreciable property: 1992–93 tax year EZ 16Amount of depreciation loss for plant or machinery additional to section EZ 15 amount EZ 17Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994 EZ 18Section EZ 17 amount of depreciation loss when items transferred between companies in wholly-owned group before 1 April 1993 EZ 19Section EZ 17 amount of depreciation loss when person previously exempt from tax acquires item EZ 20Adjusted tax value for software acquired before 1 April 1993 EZ 21Sections EE 45 and EE 47: permanent removal: allowance before 1 April 1995 EZ 22Base value and total deductions in section EE 56: before 1 April 1995 EZ 23Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005 EZ 23BAAircraft acquired before 2017–18 income year: adjusted tax value, base value, reduced; total deductions increased EZ 23BProperty acquired after depreciable property affected by Canterbury earthquakes EZ 23BBInterest in property acquired after depreciable property affected by Canterbury earthquakes EZ 23BCProperty acquired after depreciable property affected by Hurunui/Kaikōura earthquakes EZ 23BDLoss on disposal of grandparented structure EZ 23BEProperty acquired after depreciable property affected by North Island flooding events EZ 23CInsurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition EZ 23DInsurance for Canterbury earthquake damage of property: limit on depreciation recovery income EZ 23EItem treated as available for use if access restricted due to Canterbury earthquake EZ 23FInsurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions EZ 23GInsurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions

Definitions

Expected death strain formulas

EZ 53How expected death strain is calculated EZ 54Expected death strain formulas EZ 55Expected death strain formulas: option when more than 1 life insured EZ 56Expected death strain formula (life): when annuity payable on death EZ 57Expected death strain formulas: when annuity payable on survival to date or age specified in policy EZ 58Expected death strain formula (life): when partial reinsurance exists

Actuarial reserves

EZ 59Meaning of actuarial reserves EZ 60Actuarial reserves: calculation

Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 61Allowance for cancelled amount: spreading EZ 62Reinsurance transition: life financial reinsurance may be life reinsurance EZ 63Disposal and acquisition upon entry EZ 64New Zealand Railways Corporation restructure: purpose and initial amounts for tax purposes EZ 65Expenditure or loss incurred, and amounts derived EZ 66Prepayments EZ 67Leased assets EZ 68Definitions EZ 69IFRS financial reporting method: interest-free and low-interest loans EZ 69BIFRS financial reporting method: equity or other comprehensive income EZ 70Insurance for Canterbury earthquake damage of property: treatment as disposal and reacquisition EZ 71Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income EZ 72Item treated as available for use if access restricted due to Canterbury earthquake EZ 73Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions EZ 74Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions EZ 75Consideration for property or services: IFRS foreign ASAPs before 2014–15 income year EZ 76Consideration for property or services: non-IFRS foreign ASAPs before 2014–15 income year EZ 77Substituting debentures repeal: transitional rules EZ 78Insurance for Hurunui/Kaikōura earthquake damage of property: treatment as disposal and reacquisition EZ 79Insurance for Hurunui/Kaikōura earthquake damage of property: limit on depreciation recovery income EZ 80Refund of excess deposit in main income equalisation account as consequence of election under section EZ 4B or FP 23 EZ 81Refund of excess deposit in adverse event income equalisation account as consequence of election under section EZ 4B or FP 23 EZ 82Transfers of deposits when adverse event income equalisation accounts abolished EZ 83Insurance for damage of property caused by North Island flooding events: treatment as disposal and reacquisition EZ 84Insurance for damage of property caused by North Island flooding events: limit on depreciation recovery income EZ 85Item treated as available for use if access restricted due to North Island flooding events EZ 86Insurance for North Island flooding event damage causing disposal: optional timing rule for income, deductions EZ 87Insurance for repairs of North Island flooding event damage: optional timing rule for income, deductions

Part F:
Recharacterisation of certain transactions

Recharacterisation of certain commercial arrangements

FA 1What this subpart does FA 2Recharacterisation of certain debentures FA 2BStapled debt securities FA 3Recharacterisation of certain dividends: recovery of cost of shares held on revenue account FA 4Recharacterisation of shareholder’s base: company reacquiring share FA 5Assets acquired and disposed of after deduction of payments under lease FA 6Recharacterisation of amounts derived under finance leases FA 7Determining amount of loan FA 8Deductibility of expenditure under finance lease FA 9Treatment when lease ends: lessee acquiring asset FA 10Treatment when lease ends: lessor acquiring asset FA 11Adjustments for leases that become finance leases FA 11BAdjustments for certain operating leases FA 12Recharacterisation of amounts derived under hire purchase agreements FA 13Agreements recharacterised as sale with finance provided FA 14Deductibility of expenditure or loss under hire purchase agreement FA 15Treatment when agreement ends: seller acquiring property FA 16Treatment when agreement ends: when seller is cash basis person FA 17Treatment when agreement ends: when buyer is cash basis person FA 18Treatment of amounts paid in income years after agreement ends

Transfers of relationship property

FB 1When this subpart applies FB 1BMeaning of settlement of relationship property and property FB 1CObligations for periods before and from transfer of property FB 2Personal property FB 3AResidential land FB 3Land acquired for certain purposes or under certain conditions FB 4Land under scheme for major development or division FB 5Disposal of land FB 6Timber or right to take timber FB 7Land with standing timber FB 8Patent applications and patent rights FB 9Financial arrangements rules FB 10Continuity provisions: shares and options FB 10BLook-through companies FB 11Pension payments to former employees FB 12Pension payments to former partners FB 13Trading stock FB 14Specified livestock FB 15Specified livestock valued under herd scheme FB 16Non-specified livestock FB 17High-priced livestock FB 18Bloodstock FB 19Leased assets FB 20Mining assets FB 21Depreciable property

Distribution, transmission, and gifts of property

FC 1Disposals to which this subpart applies FC 2Transfer at market value FC 3Property transferred to spouse, civil union partner, or de facto partner FC 4Property transferred to charities or to close relatives and others FC 5Land transferred to close relatives FC 6Forestry assets transferred to close relatives FC 7Transfer of prepaid property FC 8Transfer of certain financial arrangements FC 9Residential land transferred to executor, administrator, or beneficiary on death of person

Exceptions for residential land transferred to trustees of certain trusts or other entities

FC 9BResidential land: certain transferors FC 9CResidential land: certain recipients FC 9DResidential land: certain recipients of Treaty of Waitangi land FC 10Transfers from person to Official Assignee under Insolvency Act 2006

Rollover relief from the bright-line test

FD 1Relief from bright-line test for transfers between associated persons FD 2Relief from bright-line test for Māori rollover trusts FD 3Certain transfers of residential land included in settlement of claim under Treaty of Waitangi

Interest apportionment on thin capitalisation

FE 1What this subpart does FE 2When this subpart applies FE 3Interest apportionment for individuals FE 4Some definitions FE 4BMeaning of public project asset, public project debt, and public project participant debt FE 5Thresholds for application of interest apportionment rules FE 6Apportionment of interest by excess debt entity FE 6BAlternative apportionment of interest by some excess debt entities FE 7Apportionment of interest by reporting bank FE 7BInterest on public project debt for certain excess debt entities FE 8Measurement dates FE 9Elections FE 10Currency FE 11Disregarded increases or decreases in value FE 12Calculation of debt percentages FE 12BCalculations for group for test and apportionment using interest-income ratio FE 13Financial arrangements entered into with persons outside group

Debt percentage of New Zealand group

FE 14Consolidation of debts and assets FE 15Total group debt FE 16Total group assets FE 16BTotal group non-debt liabilities

Debt percentage of worldwide group

FE 17Consolidation of debts and assets FE 18Measurement of debts and assets of worldwide group

New Zealand banking group

FE 19Banking group’s equity threshold FE 20Financial value and regulatory value FE 21Banking group’s New Zealand net equity FE 22Notional offshore investment FE 23Banking group’s funding debt FE 24Regulations

New Zealand group

FE 25New Zealand group for excess debt entity that is a company or non-resident owning body FE 26Identifying New Zealand parent FE 27Establishing companies under parent’s control FE 28Identifying members of New Zealand group FE 29Combining New Zealand groups owned by natural persons and trustees FE 30Ownership interests in companies outside New Zealand group

Worldwide group

FE 31Worldwide group for corporate excess debt entity if not excess debt outbound company FE 31BWorldwide group for excess debt outbound companies FE 31CCFCs in worldwide group for natural persons or trustees described in section FE 2(1)(g)FE 31DWorldwide group for entity controlled by non-resident owning body or trustee FE 32Joint venture parties

New Zealand banking group

FE 33New Zealand banking group FE 34Identifying ultimate parent FE 35Persons who may be excluded from banking groups FE 36Identifying members of New Zealand banking group in usual case FE 36BIdentifying members of New Zealand banking group: Crown-owned, no interest apportionment FE 37Reporting bank for New Zealand banking group FE 38Measuring ownership interests in companies FE 39Direct ownership interests FE 40Tiered ownership interests FE 41Treatment of associated persons’ interests

Interest apportionment for conduit investment

FF 1What this subpart does FF 2When interest apportionment rule applies FF 3Steps required to determine treatment of excessive interest expenditure FF 4Threshold for application of interest apportionment rule FF 5Determination of excess amount of interest expenditure of group FF 6Conduit tax relief FF 7Surplus to foreign dividends FF 8Identifying members of foreign groups FF 9Calculating debt percentage of New Zealand foreign groups FF 10Calculating debt percentage of consolidated foreign groups FF 11Changes in foreign group membership

Treatment of notional loans to New Zealand branches of foreign banks

FG 1When this subpart applies FG 2Notional loans FG 3Notional interest

Hybrid and branch mismatches of deductions and income from multi-jurisdictional arrangements

FH 1Subpart implements OECD recommendations for domestic law FH 2Order of application of provisions FH 3Payments under financial instruments producing deduction without income FH 4Receipts under financial instruments producing deduction without income FH 5Payments by New Zealand resident or New Zealand deducting branch producing deduction without income FH 5BException: when payee group not allowed deductions for supplies as prerequisites for payer supplies FH 6Receipts from non-resident or foreign deducting branch producing deduction without income FH 7Payments to person outside New Zealand producing deduction without income FH 8Expenditure or loss through hybrid entity or foreign deducting branch producing double deduction without double income FH 9Expenditure or loss of hybrid entity, or non-resident through deducting branch, producing double deduction without double income FH 10Expenditure or loss of dual resident company producing double deduction without double income FH 11Residents, or non-residents with deducting branches, having expenditure funding overseas hybrid mismatches FH 12Offset of mismatch amounts against surplus assessable income FH 13Election by borrower under financial arrangement FH 14Irrevocable election by owner of hybrid entity FH 15Definitions

Emigration of resident companies

FL 1What this subpart does FL 2Treatment of companies that become non-resident and their shareholders FL 3Treatment of companies that start being treated as non-resident and their shareholders

Consolidated groups of companies

FM 1What this subpart applies to FM 2Consolidation rules FM 3Liability of consolidated groups and group companies FM 4Limiting joint and several liability of group companies FM 5Liability when company leaves consolidated group FM 6Some general rules for treatment of consolidated groups

Accounting generally

FM 7Treatment of amounts derived or expenditure incurred FM 8Transactions between group companies: income FM 9Amounts that are company’s income FM 10Expenditure: intra-group transactions FM 11Expenditure: nexus with income derivation FM 12Expenditure when deduction would be denied to consolidated group FM 13Capital expenditure FM 14Part-year financial statements

Accounting for particular property

FM 15Amortising property and revenue account property FM 16Land or business: certain farming or forestry expenditure FM 17Trading stock FM 18Financial arrangements: transfer from company A to company B FM 19Financial arrangements: transfer for fair and reasonable consideration FM 20Financial arrangements: transfer at market value FM 21Property transfers when companies leave consolidated groups FM 22Arrangements to avoid consolidation rules FM 23Arrangements for disposal of shares

Treatment of foreign dividends

FM 24General treatment of foreign dividends FM 25Reduction in payments for foreign dividends FM 26Using tax losses to pay FDP FM 27Refunds of FDP FM 28Refund when consolidated group has loss FM 29Treatment of credit balance in consolidated group’s FDP account FM 30Application of certain provisions to consolidated groups

Eligibility and restrictions

FM 31Eligibility rules FM 32Restriction on membership of consolidated groups FM 33When membership is reduced

Nominated companies

FM 34Nominated companies

Forming, joining, or leaving consolidated groups

FM 35Forming consolidated group FM 36Joining existing consolidated group FM 37Leaving consolidated group

When membership starts and stops

FM 38Notice requirements on forming or joining consolidated group FM 39Choosing to leave consolidated group FM 40Losing eligibility to be part of consolidated group FM 41No nominated company FM 42When company liquidated

Imputation groups of companies

FN 1When this subpart applies FN 2Imputation rules FN 3Liabilities of companies in imputation group FN 4Eligibility rules FN 5Imputation groups with reduced numbers FN 6Nominated companies FN 7Forming imputation groups FN 8Trans-Tasman imputation groups and resident imputation subgroups FN 9Joining existing imputation group FN 10When membership of imputation group ends FN 11Company choosing to leave imputation group FN 12Company no longer eligible or entitled to membership FN 13Imputation group with no nominated company FN 14Effect of liquidation of company

Amalgamation of companies

Tax relief for emergencies

FP 1Outline of subpart FP 2Application to emergency events FP 3Definitions for the purposes of subpart FP FP 4Summary of property rollover relief provisions

Replacements: revenue account property

FP 5Replacement property for land or buildings affected by emergency events FP 6Meaning of suspended recovery income for affected revenue property FP 7Cost of replacement property for section DB 23

Replacements: depreciable property

FP 8Replacement property for depreciable property affected by emergency events FP 9Meaning of suspended recovery income for affected class FP 10Replacement reduction for affected depreciable property FP 11Effect of replacing affected depreciable property on subpart EE

Replacements: improvements to land

FP 12Replacement property for improvements to land affected by emergency events

Interruption expenditure

FP 13Treatment of expenditure when income-earning activity interrupted

When certain items of depreciable property damaged

FP 14When property uneconomic to repair FP 15Insurance for damage of property caused by emergency event: limit on depreciation recovery income FP 16Item treated as available for use if access restricted due to emergency event

Certain optional timing rules for depreciable property

FP 17Insurance for emergency event damage causing disposal: optional timing rule for income, deductions FP 18Insurance for repairs of emergency event damage: optional timing rule for income, deductions

Optional rule for valuation of group assets

FP 19Optional rules for valuation of group assets FP 20Certain amounts derived by employees during emergency events FP 21Employee benefits for emergency: not fringe benefit FP 22Accommodation expenditure incurred during emergency events FP 23Livestock destroyed because of emergency events FP 24Calculation of income for section FP 23 FP 25Livestock number for section FP 24 FP 26Livestock specified by regulations FP 27Certain land and buildings affected by emergency event

Terminating provisions

FZ 1Treatment of interest payable under debentures issued before certain date FZ 2Effect of specified lease on lessor and lessee FZ 3Income of lessor under specified lease FZ 4Deductions under specified leases FZ 5Commercial bills FZ 6Transitional valuation rule for estate property FZ 7Valuation of group assets: insurance proceeds from Canterbury earthquake FZ 7BValuation of group assets: insurance proceeds from North Island flooding events FZ 8Transition period for amendments to interest apportionment rules FZ 9Transfers of trading stock to non-associates, donee organisations, or public authorities

Part G:
Avoidance and non-market transactions

Avoidance: general

GA 1Commissioner’s power to adjust GA 2Commissioner’s power to adjust: fringe benefit tax

Avoidance: specific

Arrangements involving residential land

GB 52Arrangements involving residential land: companies’ shares GB 53Arrangements involving residential land: trusts GB 53BInterposed residential property percentage: increases or decreases in value GB 53COn-lending at lower rate GB 54Arrangements involving establishments GB 55Arrangements involving tax credits for charitable or other public benefit gifts GB 56Arrangements involving research and development tax credits

Market value substituted

GC 1Certain disposals of trading stock at below market value GC 2Disposals of timber rights or standing timber GC 3Disposals by life insurers GC 3BDisposals of emissions units GC 4Disposals and acquisitions of FIF attributing interests GC 4BDisposals of ETS units at below market value GC 5Leases for inadequate rent GC 6Purpose and application of rules and nature of arrangements GC 7Excess amount payable by person GC 8Insufficient amount receivable by person GC 9Compensating arrangement: person paying less than arm’s length amount GC 10Compensating arrangement: person receiving more than arm’s length amount GC 11Applications for matching treatment GC 12Effect on person's withholding obligations GC 13Calculation of arm’s length amounts GC 14Definitions for sections GC 6 to GC 13 GC 15Aspects of loan adjusted for application of sections GC 16Credit rating of borrower: other than insuring or lending person GC 17Credit rating of borrower: insuring or lending person GC 18Loan features disregarded by rules for transfer pricing arrangements GC 19Sections GC 15 to GC 18 and financial arrangements entered before application period GC 20Effect of purchase price allocation agreement GC 21Purchase price allocation required: no agreement

Terminating provisions

GZ 1Limitation on section GB 20: petroleum and mineral mining arrangements GZ 2Arrangements involving cancellation of conduit tax relief credits GZ 3Donations of trading stock for relief of Canterbury earthquakes GZ 4Disposals of trading stock to donee organisations or public authorities GZ 5Disposals of trading stock to non-associates

Part H:
Taxation of certain entities

Qualifying companies (QC)

HA 1What this subpart does HA 2Meaning of qualifying company HA 3Meaning of loss-attributing qualifying company HA 4Conditions applying HA 5Elections to become qualifying company HA 6Corporate requirements HA 7Shareholding requirements HA 7BGrandparenting requirement HA 8Shareholders’ personal liability HA 8BNo CFC income interests or FIF direct income interests of 10% or more HA 9Limit on foreign non-dividend income HA 10Nature of LAQC shares HA 11When requirements no longer met: qualifying companies HA 11BWhen requirements no longer met: LAQCs HA 12Avoidance arrangements HA 13Qualifying companies’ distributions HA 14Dividends paid by qualifying companies HA 15Fully imputed distributions HA 16Dividends paid by qualifying companies to trustee shareholders HA 17Dividends derived by qualifying companies HA 18Treatment of dividends when qualifying company status ends HA 19Credit accounts and dividend statements HA 20Attribution of tax losses HA 21Loss balances not carried forward HA 22Group companies using tax losses HA 23Treatment of tax losses on amalgamation HA 24Treatment of tax losses other than certain foreign losses HA 25Treatment of certain foreign losses HA 26Attribution when balance dates differ HA 27Attribution when loss results in reduction in value of shares HA 28Elections by trustee shareholders HA 29Elections by majority shareholders HA 30When elections take effect HA 31Revocation of directors’ elections HA 32Revocation of shareholders’ elections: by notice HA 33Revocation of shareholders’ elections: by event HA 33BTransitional rules for look-through companies, partnerships, and sole traderships HA 34Period of grace following death of shareholder HA 35Period of grace following revocation of election HA 36Period of grace following revocation of joint election HA 37Period of grace for new shareholder HA 38Elections by directors and shareholders required HA 39Revocation of elections HA 40Liability for qualifying company election tax HA 41Calculating qualifying company election tax HA 42Paying qualifying company election tax HA 43Meaning of effective interest HA 44Measuring effective interests

Look-through companies

HB 1Look-through companies are transparent HB 2Previous income and expenditure or loss HB 3Loss balances extinguished HB 4General provisions relating to disposals HB 5Disposal of owner’s interests HB 6Disposal of trading stock HB 7Disposal of depreciable property HB 8Disposal of financial arrangements and certain excepted financial arrangements HB 9Disposal of short-term agreements for sale and purchase HB 10Disposal of livestock HB 11Limitation on deductions by persons with interests in look-through companies HB 12Limitation on deductions by owners of look-through companies: carry-forward HB 13LTC elections

Trusts

HC 1What this subpart does HC 2Obligations of joint trustees for calculating income and providing returns HC 3Multiple settlements HC 4Corpus of trust HC 5Amounts derived by trustees HC 6Beneficiary income HC 7Trustee income HC 8Amounts received after person’s death HC 8BIncome in income year of person’s death and following 3 income years HC 9Classifying trusts HC 10Complying trusts HC 11Foreign trusts HC 12Non-complying trusts HC 13Charitable trusts HC 14Distributions from trusts HC 15Taxable distributions from non-complying and foreign trusts HC 16Ordering rule for distributions from non-complying and foreign trusts HC 17Amounts derived as beneficiary income HC 18Taxable distributions from foreign trusts HC 19Taxable distributions from non-complying trusts HC 20Distributions from complying trusts HC 21Distributions from community trusts HC 22Use of tax losses to reduce taxable distributions from non-complying trusts HC 23Temporary absences of beneficiaries HC 24Trustees’ obligations HC 25Foreign-sourced amounts: non-resident trustees HC 26Foreign-sourced amounts: resident trustees HC 27Who is a settlor?HC 28Activities treated as those of settlor HC 29Settlors’ liability to income tax HC 30Treatment of foreign trusts when settlor becomes resident HC 31When existing trusts come into tax base HC 31BValue transfer by deferral, or non-exercise, of right to demand payment HC 32Liability of trustee as agent HC 33Choosing to satisfy income tax liability of trustee HC 34Taxable distributions from non-complying trusts HC 35Beneficiary income of minors HC 36Trusts and minor beneficiary rule HC 37Testamentary trusts and minor beneficiary rule HC 38Beneficiary income of certain close companies HC 39Trustee income: disabled beneficiary trusts HC 40De minimis trust

Agents

HD 1What this subpart does HD 2Joint liability of principal and agent for tax obligations HD 3Agents’ duties and liabilities HD 4Treatment of principals HD 5Matters between principals and agents HD 6When relationship effectively that of principal and agent HD 7Rate and amount of tax HD 8Circumstances giving rise to agency HD 9Guardians HD 10Mortgagees in possession HD 11Nominated companies HD 12Trusts HD 13Unit trusts HD 13BAIM companies HD 14Companies issuing debentures HD 15Asset stripping of companies HD 16Non-resident general insurers HD 17Agent paying premiums to residents of Switzerland HD 17BLloyd’s of London: agents for life insurance HD 18Agency in relation to absentees generally HD 19Persons receiving absentees’ income HD 20Persons carrying on business for absentees HD 20BGeneral partners and partners carrying on with or managing business involving absentees HD 21Companies HD 22Banking companies HD 23Trustees of group investment funds HD 24Shipping businesses HD 25Persons remitting amounts outside New Zealand HD 26Agency in relation to non-residents generally HD 27Employers HD 28Government pensions and payments under superannuation schemes HD 29Persons acquiring goods from overseas HD 30Members of wholly-owned large multinational group

Mutual associations

HE 1Income and deductions of mutual associations HE 2Classes of mutual transaction HE 3Association rebates HE 4Apportionment when transactions with members and non-members HE 5Association rebates paid by shares or credit

Maori authorities

HF 1Maori authorities and the Maori authority rules HF 2Who is eligible to be a Maori authority?HF 3Applying provisions to Maori authorities HF 4What constitutes a Maori authority distribution?HF 5Notional distributions of co-operative companies HF 6Tax treatment of Maori authority distributions HF 7Taxable Maori authority distributions HF 8Proportional allocation

Table H1Consequences of change in entity status for purposes of Maori authority rules

HF 9Treatment of companies and trusts that choose to apply this subpart HF 10Market value calculations HF 11Choosing to become Maori authority

Joint venturers, partners, and partnerships

HG 1Joint venturers HG 2Partnerships are transparent HG 3General provisions relating to disposals HG 4Disposal upon final dissolution HG 5Disposal of partner’s interests HG 6Disposal of trading stock HG 7Disposal of depreciable property HG 8Disposal of financial arrangements and certain excepted financial arrangements HG 9Disposal of short-term agreements for sale and purchase HG 10Disposal of livestock HG 11Limitation on deductions by partners in limited partnerships HG 12Limitation on deductions by partners in limited partnerships: carry-forward

Portfolio investment entities

Portfolio investment entities

Introductory provisions

HM 1Outline of subpart and relationship with other Parts HM 2What is a portfolio investment entity?HM 3Foreign PIE equivalents HM 4Who is an investor?HM 5What is an investor class?HM 6Intended effects for multi-rate PIEs and investors HM 6BOptional look-through rules for certain PIEs

Entry rules

HM 7Requirements

Requirements

HM 8Residence in New Zealand HM 9Collective schemes HM 10Exclusion: life insurance business HM 10BExclusion: banks and licensed non-bank deposit takers HM 11Investment types HM 12Income types HM 13Maximum shareholdings in investments HM 14Minimum number of investors HM 15Maximum investor interests HM 16Associates combined HM 17Same rights to all investment proceeds HM 18Requirements for listed PIEs: unlisted companies HM 19Requirements for listed PIEs: fully crediting distributions HM 19BModified rules for foreign investment zero-rate PIEs HM 19CModified rules for foreign investment variable-rate PIEs HM 20Re-entering as PIE: 5-year rule

Exceptions

HM 21Exceptions for certain investors HM 22Exceptions for certain funds HM 23Exceptions for foreign PIE equivalents

Exit rules

HM 24Immediate loss of PIE status HM 25When entity no longer meets investment or investor requirements HM 26Starting life insurance business HM 27When multi-rate PIE no longer meets investor interest adjustment requirements HM 28When listed PIE no longer meets requirements HM 29Choosing to cancel status HM 30When foreign PIE equivalent no longer meets requirements

Rules for multi-rate PIEs

Introductory provisions

HM 31Rules for multi-rate PIEs HM 32Rules for and treatment of investors in multi-rate PIEs HM 33Proxies for PIE investors

Attributing income to investors

HM 34Attribution periods HM 35Determining net amounts and taxable amounts HM 35BTreatment of certain provisions made by multi-rate PIEs HM 35CDetermining amounts for notified foreign investors HM 36Calculating amounts attributed to investors HM 36BCalculating PIE schedular income adjustments for natural person investors HM 37When income cannot be attributed HM 38When superannuation fund investor has conditional entitlement HM 39New investors in existing investor classes HM 40Deductions for attributed PIE losses for zero-rated and exiting investors equal to amount attributed

Calculating and paying tax liability

HM 41Options for calculation and payment of tax HM 42Exit calculation option HM 42BPart-year tax calculations for PIEs under the exit calculation option for the 2010–11 tax year HM 43Quarterly calculation option HM 44Provisional tax calculation option HM 44BNRWT calculation option HM 45Voluntary payments HM 46Calculation process HM 47Calculation of tax liability or tax credit of multi-rate PIEs

Adjusting investors’ interests

HM 48Adjustments to investor interests or to distributions

Using tax credits

HM 49Tax credits: when sections HM 50 to HM 55 apply HM 50Attributing credits to investors HM 51Use of foreign tax credits by PIEs HM 52Use of foreign tax credits by zero-rated and certain exiting investors HM 53Use of tax credits other than foreign tax credits by PIEs HM 54Use of tax credits other than foreign tax credits by investors HM 55Tax credits for losses HM 55CModified source rules HM 55DRequirements for investors in foreign investment PIEs HM 55EChanges in status of investors in foreign investment PIEs HM 55FTreatment of income attributed to notified foreign investors HM 55FBNotified foreign investors and tax credits for supplementary dividends HM 55GAllowable amounts and thresholds for income with New Zealand source HM 55HTreatment when certain requirements for foreign investment PIEs not met

Prescribed and notified rates for investors in multi-rate PIEs

HM 56Prescribed investor rates: schedular rates HM 57Prescribed investor rates for certain investors: 0%HM 57BPrescribed investor rates for new residents HM 58Transition of rate for certain investors HM 59Prescribed investor rates for certain investors: 0%HM 60Notified investor rates HM 60BInvestor rates provided by Commissioner HM 61Certain exiting investors zero-rated

Exit levels and periods

HM 62Exit levels for investors HM 63Exit periods

Losses of certain multi-rate PIEs

HM 64Use of investor classes’ losses HM 65Use of land losses of investor classes

Formation losses

HM 66Formation losses carried forward to tax year HM 67Formation losses carried forward to first quarter HM 68When formation losses carried forward are less than 5% of formation investment value HM 69When formation losses carried forward are 5% or more of formation investment value: 3-year spread HM 70Maximum amount of formation losses allocated by multi-rate PIEs to investor classes

Elections and consequences

HM 71Choosing to become PIE HM 71BChoosing to become foreign investment PIE HM 72When elections take effect HM 73Transition: provisional tax HM 74Transition: entities with non-standard income years HM 75Transition: treatment of shares held in certain companies HM 76Transition: FDPA companies

Taxation of members of certain multinational groups

HP 1Liability for multinational top-up tax HP 2Payment date for multinational top-up tax HP 3Application of global anti-base erosion model rules HP 4Meaning of terms defined in global anti-base erosion model rules

Other entities

HR 1Partnerships and joint ventures HR 2Group investment funds HR 3Definitions for section HR 2: group investment funds HR 4Government Superannuation Fund HR 4BActivities relating to New Zealand Superannuation Fund and Venture Capital Fund HR 5Airport operators: general HR 6Airport operator’s assets HR 7Meaning of airport operator’s activities HR 8Transitional residents HR 9Debt funding special purpose vehicles are transparent if election made by originator HR 9BAAMeaning of originator HR 9BAElections to treat debt funding special purpose vehicles as transparent HR 9BBankruptcy-remote property during application of section HR 9 HR 10What happens when vehicle stops being transparent debt funding special purpose vehicle?HR 10BWhat happens when persons stop being originators?HR 11Non-exempt charities: initial tax base HR 12Non-exempt charities: treatment of tax-exempt accumulations HR 13Lloyd’s of London: life insurance

Terminating provisions

HZ 1Distributions from trusts of pre-1989 tax reserves HZ 2Trusts that may become complying trusts HZ 3Special partnerships: transition into limited partnerships and limited partnerships deduction rules HZ 4Overseas limited partnerships: transition into limited partnerships deduction rules HZ 4BQualifying companies: transition into partnership HZ 4CQualifying companies: transition into look-through companies HZ 4DQualifying companies: transition into sole traderships HZ 4ETransition out of LTC regime for Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 HZ 5Transitional provisions for PIE rules HZ 6Saving of binding rules relating to portfolio investment entities HZ 7Saving of binding rulings relating to settlements on trusts HZ 8Retrospective transitional provision for market valuation under section HB 4 HZ 9Elections to treat existing debt funding special purpose vehicles as transparent HZ 10What happens when election is made under section HZ 9?HZ 11Protection from non-compliance: Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020

Part I:
Treatment of tax losses

General rules for tax losses

IA 1What this subpart does IA 2Tax losses IA 3Using tax losses in tax year IA 3BTax losses and procedures under Insolvency Act 2006 IA 4Using loss balances carried forward to tax year IA 5Restrictions on companies’ loss balances carried forward: continuity of ownership IA 6Restrictions on companies grouping tax losses IA 7Restrictions relating to ring-fenced tax losses IA 8Restrictions relating to schedular income IA 9Ordering rules IA 10Amended assessments

Carrying forward companies’ loss balances: continuity of business activities

IB 1Purpose IB 2Meaning of ownership continuity breach IB 2BWhen subsequent ownership continuity breach regarded as occurring IB 3When tax loss components of companies carried forward despite ownership continuity breach IB 4Business continuity period IB 5When group companies treated as single company

Grouping tax losses

IC 1Company A making tax loss available to company B IC 2Threshold levels for grouping tax losses in tax year IC 3Common ownership: group of companies IC 4Common ownership: wholly-owned groups of companies IC 5Company B using company A’s tax loss IC 6Common ownership for period IC 7Place of incorporation or carrying on business IC 8Limitations on amounts used IC 9Date for payment and notice to Commissioner IC 10When companies have different balance dates IC 11Reduction of amounts used by companies IC 12Bad debts or decline in value of shares IC 13Variation of requirements for development companies in Niue

Use of tax losses by consolidated groups

ID 1Treatment of tax losses by consolidated groups ID 2Pre-consolidation losses: general treatment ID 3Pre-consolidation losses: use by group companies ID 4Pre-consolidation losses on entry: part-year rule ID 5Pre-consolidation losses on exit: part-year rule

Treatment of tax losses on amalgamation of companies

IE 1When this subpart applies IE 2Treatment of tax losses by amalgamating company IE 3Treatment of tax losses by amalgamated company IE 4Group companies’ treatment of tax losses on amalgamation IE 5Applying the continuity provisions when companies amalgamate

Meeting requirements for part-years

IP 1When this subpart applies IP 2Group companies’ common span IP 3Ownership continuity breach: tax loss components of companies carried forward IP 3BBusiness continuity breach: tax loss components of companies carried forward IP 4Breach in income year in which tax loss component arises IP 5Breach in tax year in which loss balance is grouped IP 6Financial statements required IP 7Notices required

Attributed controlled foreign company net losses and foreign investment fund net losses

IQ 1AWhen this subpart applies IQ 1General treatment IQ 1BLosses carried forward to tax year IQ 2Ring-fencing cap on attributed CFC net losses IQ 2BEffect of attributed CFC net loss and FIF net loss from before first affected year IQ 2CEffect of FIF net loss if attributed FIF income method not available IQ 3Ring-fencing cap on FIF net losses IQ 4Group companies using attributed CFC net losses IQ 5Group companies using FIF net losses IQ 6Pre-consolidation losses: general treatment IQ 7When group membership lacking in loss period IQ 8When group membership lacking in tax year of use IQ 9When attributed CFC net loss becomes FIF net loss

Mineral miners' and petroleum miners' tax losses

IS 1General treatment of mineral miners' net losses IS 2Treatment of net losses resulting from certain expenditure IS 3Holding companies’ tax losses IS 4Adjustments in certain circumstances IS 5Petroleum miners’ tax losses IS 6When company stops being mineral miner

Cancellation of life insurer's losses

IT 1Cancellation of life insurer's policyholder net losses IT 2Cancellation of life insurer's tax loss when allowed into policyholder base

Treatment of certain supplementary dividends

IV 1Supplementary dividend holding companies

Use of tax losses to pay shortfall penalties

IW 1Shortfall penalties

Terminating provisions

IZ 1Use of specified activity net losses IZ 2Petroleum mining companies: treatment of payments from shareholders IZ 3Petroleum mining companies: use of loss balances IZ 4Tax losses for tax years before 1977–78 tax year IZ 5Companies’ tax losses for tax years before 1991–92 tax year IZ 6Companies’ tax losses for 1990–91 and 1991–92 tax years IZ 7Grouping tax losses for tax years before 1981–82 and between 1981–82 and 1991–92 IZ 7BGrouping tax losses for commonality periods starting before 15 March 2017 for tax years after 1990–91 IZ 8Election to use net loss for 2019–20 or 2020–21 year as tax loss in preceding year

Part L:
Tax credits and other credits

General rules for tax credits

LA 1What this Part does LA 2Satisfaction of income tax liability LA 3When total tax credit less than or equal to income tax liability LA 4When total tax credit more than income tax liability LA 5Treatment of remaining credits LA 6Remaining refundable credits: PAYE, RWT, and certain other items LA 7Remaining refundable credits: tax credits for social policy and other initiatives LA 8Remaining refundable credits: non-resident withholding tax LA 8BGeneral rules particular to life insurers LA 9Use of tax credits LA 10Meaning of tax credit

Tax credits for payments, deductions, and family payments

LB 1Tax credits for PAYE income payments LB 1BTreatment of tax credits of certain companies with shareholders who are employees LB 2Tax credits for provisional tax payments LB 3Tax credits for resident withholding tax LB 4Tax credits for families LB 4BATax credits for early childhood education LB 4BTax credit for R&D tax losses LB 5Tax credits for non-resident withholding tax LB 6Tax credits for RSCT LB 6BTax credits for RLWT LB 7Tax credits related to personal service rehabilitation payments: providers LB 8Tax credits related to personal service rehabilitation payments: payers

Tax credits for natural persons

LC 1When net income under low income amount LC 2When net income in low income abatement range LC 3Child’s income LC 4Tax credits for transitional circumstances LC 5Meaning of engaged in full-time work LC 6Tax credits for housekeeping LC 7Meaning of housekeeper LC 8Some definitions LC 9Tax credits for absentees LC 10Adjustment for change in return date LC 11Adjustment when person is non-resident for part of tax year LC 12Assessment when person is non-resident

Tax credits for independent earners

LC 13Tax credits for independent earners LC 14Amount of tax credit for independent earners for 1 April 2024 to 30 July 2024 LC 15Amount of tax credit for independent earners for 31 July 2024 to 31 March 2025

Tax credits for gifts and donations

LD 1Tax credits for charitable or other public benefit gifts LD 2Exclusions LD 3Meaning of charitable or other public benefit gift LD 4Tax credits for payroll donations LD 5Calculating amount of tax credit and filing particulars LD 6When donation is paid to ineligible recipient LD 7When donation returned to person LD 8Meaning and ranking of payroll donation

Tax credits for imputation credits

LE 1Tax credits for imputation credits LE 2Use of remaining credits by companies and trustees LE 2BUse of remaining credits by life insurer on policyholder base LE 3Use of remaining credits by others LE 4Trustees for minor beneficiaries LE 4BTrustees for certain close companies LE 5Beneficiaries of trusts LE 6Partners in partnerships LE 7Credit transfer notices LE 7BCredit of RSCT for imputation credit LE 8Application of imputation ratio LE 8BDividends from certain FIF interests LE 9Application of combined imputation and FDP ratio LE 10When income tax unpaid LE 11Evidential requirements

Tax credits for foreign dividend payment (FDP) credits

LF 1Tax credits for FDP credits LF 2Trustees for minor beneficiaries LF 3Beneficiaries of trusts LF 4Partners in partnerships LF 5Credit transfer notices LF 6Application of FDP ratio LF 7Application of combined imputation and FDP ratio LF 8Credits for persons who are non-resident or who receive exempt income LF 9When income tax unpaid LF 10Evidential requirements

Tax credits for expenditure on research and development

Tax credits for foreign income tax

LJ 1What this subpart does LJ 2Tax credits for foreign income tax LJ 3Meaning of foreign income tax LJ 4Meaning of segment of foreign-sourced income LJ 5Calculation of New Zealand tax LJ 6Taxable distributions and NRWT rules LJ 7Repaid foreign tax: effect on income tax liability LJ 8Repaid foreign tax: effect on FDP liability

Tax credits relating to attributed controlled foreign company income

LK 1Tax credits relating to attributed CFC income LK 2Calculation of amount of credit LK 3Currency conversion LK 4Use of remaining credits LK 5Companies’ credits carried forward LK 5BCredits from tax year before first affected year LK 6Use of credits by group companies LK 7Taxable distributions and NRWT rules LK 8Tax credits of consolidated companies LK 9Use of company’s credits carried forward LK 10When group membership lacking in tax year in which credit arises LK 11When group membership lacking in tax year in which credit used LK 12Treatment of credits when companies amalgamate LK 13Use of credits by amalgamated company LK 14Use by amalgamated company of credits carried forward LK 15Use of amalgamating company’s credits

Underlying foreign tax credits (UFTC)

LL 1What this subpart does LL 2Tax credits for underlying foreign tax LL 3Meaning of grey list dividend LL 4Tracking accounts LL 5Meaning of foreign dividend company net earnings LL 6Foreign dividend company lower tier UFTCs LL 7Conduit financing arrangements LL 8Currency conversion LL 9Some definitions

Tax credits for Maori authority credits

LO 1Tax credits for Maori authority credits LO 2Beneficiaries of trusts LO 2BCredit of RSCT for Maori authority credit LO 3Application of Maori authority distribution ratio LO 4When income tax unpaid LO 5Evidential requirements

Tax credits for supplementary dividends

LP 1What this subpart does LP 2Tax credits for supplementary dividends LP 3Use of remaining credits LP 4Continuity rules for carrying credits forward LP 5Application of benchmark dividend rules and imputation credit ratio LP 6Deriving supplementary dividend and breach of terms of trust LP 7Requirements for supplementary dividend holding companies LP 8Relationship with exempt income rules LP 9Relationship with RWT rules LP 10Limitation on deductions

Tax credits of conduit tax relief companies

LQ 1Tax credits of CTR companies LQ 2Limitation on amount of credit LQ 3Determining percentage of non-resident shareholders LQ 4Date for determining percentage of non-resident shareholders LQ 5CTR additional dividends

Tax credits for policyholder income

LR 1Tax credits for policyholder income

Tax credits for multi-rate PIEs and investors

LS 1Tax credits for multi-rate PIEs LS 2Tax credits for investors in multi-rate PIEs LS 3Tax credits for zero-rated investors LS 4Tax credits for certain exiting investors

Tax credits for petroleum miners

LT 1Tax credits for petroleum miners LT 2Petroleum mining operations outside New Zealand

Tax credits for mineral miners

LU 1Tax credits for mineral miners

Research and development tax credits

LY 1Research and development tax credits LY 2Key terms LY 3When this subpart applies LY 4Calculation of tax credit LY 5Eligible research and development expenditure LY 6Contracted research and development expenditure LY 7Foreign research and development expenditure LY 8Carry forward for remaining research and development tax credits LY 9Orders in Council LY 10Evaluation

Terminating provisions

LZ 1Low tax jurisdiction companies LZ 2Certain development projects LZ 3Interest derived from development investments LZ 4Dividends derived from development investments LZ 5Some definitions LZ 6Interest on home vendor mortgages LZ 7Maximum amount of credit under section LZ 6 LZ 8Meaning of home vendor mortgage LZ 9Savings in special home ownership accounts LZ 10Maximum amount for 1 special home ownership account for 1 tax year LZ 11Maximum amount for all special home ownership accounts for all tax years LZ 12Meaning of increase in savings LZ 13Part-year override of section LY 3(2)(b)LZ 14Research and development tax credits’ refundability: option for 2019–20 income year

Part M:
Tax credits paid in cash

General provisions

MA 1What this Part does MA 2Relationship with core provisions MA 3Excluded income MA 4Calculation of amounts of credit producing negative amounts MA 5Advice from outside agencies MA 6Avoidance arrangements MA 7Meaning of full-time earner and earner for family scheme MA 8Some definitions for family scheme

Adjustment of net income for family scheme

Entitlements under family scheme

MC 1What this subpart does MC 2Who qualifies for entitlements under family scheme?MC 3First requirement: person’s age MC 4Second requirement: principal care MC 5Third requirement: residence or entitlement to emergency benefit MC 6When person does not qualify MC 7When spouse or partner entitled under family scheme MC 8Continuing requirements MC 9Credits for person aged 18 MC 10Principal caregiver MC 11Relationship periods and entitlement periods

Abating WFF tax credits

MD 1Abating WFF tax credit MD 2Calculating net contributions to credits MD 3Calculation of family tax credit MD 4Entitlement to in-work tax credit MD 5First requirement: person’s age MD 6Second requirement: principal care MD 7Third requirement: residence MD 8Fourth requirement: person not receiving benefit MD 9Fifth requirement: earner MD 10Calculation of in-work tax credit MD 11Entitlement to parental tax credit MD 12Calculation of parental tax credit MD 12BAdditional parental tax credit amount included in lump sum if 70-day period crosses 2 tax years MD 13Calculation of family credit abatement MD 14Person receiving protected family tax credit MD 15Family scheme income for purposes of section MD 14 MD 16Additional parental tax credit abatement amount for lump sum if 70-day period crosses 2 tax years

Minimum family tax credit

ME 1Minimum family tax credit ME 2Meaning of employment for this subpart ME 3Meaning of net family scheme income

Payment of credits

Best Start tax credit

MG 1Best Start tax credit entitlement MG 2Best Start tax credit MG 3Best Start credit abatement MG 4Person receiving protected Best Start tax credit

FamilyBoost tax credits

MH 1FamilyBoost tax credits: purpose MH 2Some definitions MH 3FamilyBoost tax credit MH 4Meaning of tax credit income MH 5FamilyBoost tax credit abatement

Tax credits for KiwiSaver schemes and complying superannuation funds

MK 1Tax credits for superannuation contributions MK 2Eligibility requirements MK 2BTaxable income MK 3Payment of tax credits MK 4Amount of tax credit MK 5Crown contributions for members MK 6Credit given by fund providers MK 7Amounts paid in excess MK 8Treatment of tax credits on permanent emigration MK 9Eligibility requirements MK 10Amount of credit MK 11When tax credits arise MK 12Using tax credits MK 13When short payment and unpaid compulsory employer contributions found after tax credit used MK 14Employees opting out MK 15Groups of persons MK 16Private domestic workers

Tax credits for redundancy payments

ML 1What this subpart does ML 2Tax credit for redundancy payments ML 3Payment by Commissioner

Tax credits for R&D tax losses

MX 1When subpart applies MX 2Corporate eligibility criteria MX 3Wage intensity criteria MX 4R&D loss tax credits MX 5Cancellation of R&D tax losses MX 6Deduction if increase in basic tax rate for company MX 7Reinstatement of R&D tax losses and R&D repayment tax

Terminating provisions

MZ 1Entitlement to child tax credit MZ 2Calculation of child tax credit MZ 3Exclusions from determination of family scheme income

Part O:
Memorandum accounts

General provisions

OA 1What this Part does OA 2Memorandum accounts OA 3General rules for maintaining memorandum accounts OA 4Certain credits and debits arising only in group accounts OA 5Credits OA 6Debits OA 7Opening balances of memorandum accounts OA 8Shareholder continuity requirements for memorandum accounts

General provision

OA 9General treatment of credits and debits on resident’s restricted amalgamation

When companies amalgamate

OA 10When credits or debits due to amalgamating company but not recorded OA 11FDP account on resident’s restricted amalgamation OA 12CTR account on resident’s restricted amalgamation OA 13Policyholder credit account on resident’s restricted amalgamation

Amalgamation of companies in consolidated groups

OA 14Continuity of shareholding when group companies amalgamate OA 15When credits or debits due to consolidated group but not recorded OA 16When FDP account ends on resident’s restricted amalgamation OA 17When policyholder credit account ends on resident’s restricted amalgamation OA 18Calculation of maximum permitted ratios

Imputation credit accounts (ICA)

OB 1General rules for companies with imputation credit accounts OB 2Australian companies with imputation credit accounts OB 3Imputation credit accounts OB 3BGeneral rule for life insurer's policyholder base OB 4ICA payment of tax or transfer to account OB 5ICA deposit in tax pooling account OB 6ICA transfer from tax pooling account OB 7ICA payment of further income tax OB 7BICA payment of qualifying company election tax OB 7BBICA payment of multinational top-up tax OB 7CICA expenditure on research and development OB 8ICA resident withholding tax withheld OB 9ICA dividend derived with imputation credit OB 9BICA attributed PIE income with imputation credit OB 9CICA credit for research and development tax credit OB 10ICA dividend derived with FDP credit OB 11ICA payment of FDP OB 12ICA transfer from FDP account OB 13ICA transfer of debit balance on leaving wholly-owned group OB 14ICA payment of tax on leaving wholly-owned group OB 15ICA payment of tax on joining wholly-owned group OB 16ICA attribution for personal services OB 17ICA transfer from policyholder credit account OB 18ICA transfer from ASC account OB 19ICA transfer to master fund OB 19BICA transfer to loss-using group company OB 20ICA distribution with Maori authority credit OB 21ICA balance of Maori authority credit account OB 22ICA replacement payment to company under share-lending arrangement OB 23ICA credit transfer to company OB 23BICA transfer from consolidated imputation group to departing member for unused tax payment OB 24ICA credit on resident’s restricted amalgamation OB 25ICA reversal of tax advantage arrangement OB 26ICA elimination of double debit OB 27ICA non-resident withholding tax withheld OB 28ICA payment of amount of tax for schedular payment OB 29ICA payment of schedular income tax OB 30ICA payment of dividend OB 31ICA allocation of provisional tax OB 32ICA refund of tax or transfer from account OB 33ICA amount applied to pay other taxes OB 34ICA refund from tax pooling account OB 35ICA transfer within tax pooling account OB 35BICA debit for transfer from tax pooling account for policyholder base liability OB 36ICA refund of FDP OB 37ICA refund of tax credit OB 38ICA overpayment of FDP OB 39ICA transfer for net foreign attributed income OB 40ICA attribution for personal services OB 41ICA debit for loss of shareholder continuity OB 42ICA on-market cancellation OB 43ICA breach of imputation ratio OB 44ICA debit on leaving wholly-owned group OB 45ICA redemption debit OB 46ICA transfer from member fund OB 46BICA transfer from group company to loss-using group company OB 47Debit for policyholder base imputation credits OB 47BTax paid by recipients of R&D loss tax credits OB 48ICA credit balance when Maori authority credit account starts OB 49ICA replacement payment by company under share-lending arrangement OB 50ICA returning share transfer OB 51ICA credit transfer by company OB 52ICA transfer to consolidated imputation group OB 53ICA debit on resident’s restricted amalgamation OB 54ICA tax advantage arrangement OB 55ICA retrospective imputation credit OB 56ICA final balance OB 57ICA refund of NRWT OB 58ICA refund of amount of tax for schedular payment OB 59ICA refund of schedular income tax OB 60Imputation credits attached to dividends OB 61ICA benchmark dividend rules OB 62Retrospective attachment of imputation credits OB 63Australian dividends OB 64Replacement payments OB 65Further income tax for ICA closing debit balance OB 66Further income tax when company stops being ICA company OB 67Reduction of further income tax OB 68Income tax paid satisfying liability for further income tax OB 69Further income tax paid satisfying liability for income tax OB 70Application of other provisions OB 71Imputation additional tax on leaving group of companies OB 72Imputation additional tax on joining wholly-owned group OB 72BLimit on using entitlement to refund after joining wholly-owned group OB 73Statutory producer boards attaching imputation credits to cash distributions OB 74Statutory producer boards attaching imputation credits to notional distributions OB 75Statutory producer boards’ notional distributions that are dividends OB 76Statutory producer boards attaching FDP credits OB 77When and how statutory producer board makes election OB 78Co-operative companies attaching imputation credits to cash distributions OB 78BCo-operative companies attaching imputation credits to cash distributions to groups OB 79Co-operative companies attaching imputation credits to notional distributions OB 80Co-operative companies’ notional distributions that are dividends OB 81Co-operative companies attaching FDP credits OB 82When and how co-operative company makes election OB 83Group companies transferring imputation credits with transfer of tax loss OB 84When and how group company transferring tax loss makes election

Tables of credits and debits in memorandum accounts

Table O1: imputation credits

Table O2: imputation debits

Foreign dividend payment accounts (FDPA)

OC 1General rules for companies with FDP accounts OC 2FDP accounts OC 2BGeneral rule for life insurer's policyholder base OC 3Choosing to become FDPA company OC 4When company chooses to stop being FDPA company OC 5When company emigrates OC 6FDPA payment of FDP OC 7FDPA dividend derived with FDP credit OC 8FDPA payment of FDP for transfer from CTR account OC 9FDPA transfer for net foreign attributed income OC 10FDPA payment of FDP for conduit debit balance OC 11FDPA credit transfer to company OC 12FDPA reversal of tax advantage arrangement OC 13FDPA payment of dividend OC 14FDPA refund of FDP OC 15FDPA overpayment of FDP OC 16FDPA refund of tax credit OC 17FDPA credit transfer by company OC 18FDPA transfer to imputation credit account OC 19FDPA transfer to CTR account OC 20Debit for policyholder base FDP credits OC 21FDPA transfer to group account OC 22FDPA breach of FDP ratio OC 23FDPA breach of FDP ratio by PCA company OC 24FDPA debit for loss of shareholder continuity OC 25FDPA tax advantage arrangement OC 26FDPA final balance OC 27FDP credits attached to dividends OC 28FDPA benchmark dividend rules OC 29FDP credits and imputation credits attached to dividends OC 30Payment of further income tax for closing debit balance OC 31Payment of further income tax when company no longer New Zealand resident OC 32Reduction of further income tax OC 33Income tax paid satisfying liability for further income tax OC 34Further income tax paid satisfying liability for income tax OC 35Meaning of FDP reference period OC 36Meaning of maximum deficit debit OC 37Meaning of policyholder FDP ratio OC 38Meaning of reduced deficit debit OC 39Meaning of shareholder FDP ratio

Table O3: FDP credits

Table O4: FDP debits

Conduit tax relief accounts (CTRA)

OD 1General rules for companies with CTR accounts OD 2CTR accounts OD 3Choosing to become CTR company OD 4When company stops being CTR company OD 5CTRA tax credit for conduit tax relief OD 6CTRA transfer from FDP account OD 7CTRA dividend derived with CTR credit OD 8CTRA reduction of FDP OD 9CTRA reversal of tax advantage arrangement OD 10CTRA payment of dividend OD 11CTRA transfer to FDP account OD 12CTRA transfer to group account OD 13CTRA adjustment for conduit tax relief OD 14CTRA break in shareholding chain for group company OD 15CTRA break in shareholding chain for company OD 16CTRA increase in resident shareholding OD 17CTRA breach of CTR ratio OD 18CTRA tax advantage arrangement OD 19CTRA final balance OD 20CTR credits attached to dividends OD 21CTRA benchmark dividend rules OD 22CTR credits and imputation credits attached to dividends OD 23FDP payable for CTR debits OD 24FDP payable on resident’s restricted amalgamation OD 25Refunds on transfers to CTR account

Table O5: conduit tax relief credits

Table O6: conduit tax relief debits

Branch equivalent tax accounts (BETA)

OE 1General rules for persons with branch equivalent tax accounts

Introductory provisions

OE 2Branch equivalent tax accounts of companies OE 3Choosing to become BETA company OE 4When company stops being BETA company OE 5Treatment of attributed CFC income and FIF income in this subpart

Branch equivalent tax credits

OE 6BETA payment of income tax on foreign income OE 7BETA payment of income tax OE 8BETA unused amount of debit balance OE 9BETA refund of FDP OE 10BETA credit for loss of shareholder continuity OE 11BETA final balance

Treatment of debits from conduit relief

OE 11BCompany with debit balance, including debits from conduit relief, in some income years

Branch equivalent tax debits

OE 12BETA payment of FDP OE 13BETA reduction in FDP OE 14BETA refund of income tax OE 15BETA debit for loss of shareholder continuity OE 16BETA final balance

Debit if credit balance at beginning of first affected income year

OE 16BCompany with credit balance at beginning of first affected income year

Introductory provisions

OE 17Person choosing to become BETA person OE 18When person stops being BETA person

Branch equivalent tax credits

OE 19BETA person’s payment of income tax on foreign income

Branch equivalent tax debits

OE 20BETA person’s payment of income tax OE 21BETA person’s refund of income tax OE 22BETA person’s final balance

Table O7: branch equivalent tax credits

Table O8: branch equivalent tax debits

Table O9: person's branch equivalent tax credits

Table O10: person's branch equivalent tax debits

Available subscribed capital accounts (ASCA)

OF 1General rules for companies with ASC accounts OF 2ASC accounts OF 3Choosing to become ASC account company OF 4ASCA redemption credit OF 5ASCA transfer to imputation credit account

Table O11: ASC credits

Table O12: ASC debits

Policyholder credit accounts (PCA)

OJ 1General rules for companies and other persons with policyholder credit accounts

Introductory provision

OJ 2Policyholder credit accounts of companies

Policyholder credits of PCA company

OJ 3PCA transfer from imputation credit account OJ 4PCA transfer from FDP account OJ 5PCA transfer of life insurance business OJ 6PCA credit for maximum deficit in FDP account OJ 7PCA credit for reduced deficit in FDP account

Policyholder debits of PCA company

OJ 8PCA payment of tax relating to policyholder base OJ 9PCA transfer to imputation credit account OJ 10PCA transfer to group account OJ 11PCA company’s transfer of life insurance business

Introductory provisions

OJ 12Choosing to become PCA person OJ 13Choosing to stop being PCA person

Policyholder credits of PCA person

OJ 14PCA person’s equivalent credit OJ 15PCA person’s credit for transfer of life insurance business

Policyholder debits of PCA person

OJ 16PCA person’s payment of tax relating to policyholder base OJ 17PCA person’s equivalent debit OJ 18PCA person’s debit for transfer of life insurance business

Table O13: policyholder credits

Table O14: policyholder debits

Table O15: person's policyholder credits

Table O16: person's policyholder debits

Maori authority credit accounts (MACA)

OK 1General rules for Maori authorities with Maori authority credit accounts OK 2MACA payment of tax or transfer to account OK 3MACA transfer of excess tax from other Maori authorities OK 4MACA payment of further income tax OK 4BMACA expenditure on research and development OK 5MACA distribution with Maori authority credit OK 6MACA dividend derived with imputation credit OK 6BMACA attributed PIE income with imputation credit OK 6CMACA research and development tax credit OK 7MACA dividend derived with FDP credit OK 8MACA resident withholding tax withheld OK 9MACA reversal of tax advantage arrangement OK 10MACA distribution OK 11MACA transfer of excess tax to other Maori authorities OK 12MACA refund of income tax or transfer of excess tax to period or tax type OK 13MACA payment of other taxes OK 14MACA refund of FDP OK 14BMACA refund of tax credit OK 15MACA debit for loss of shareholder continuity OK 16MACA breach of Maori authority credit ratio OK 17MACA tax advantage arrangement OK 18MACA final balance OK 19Maori authority credits attached to distributions OK 20MACA benchmark distribution rules OK 21Further income tax for closing debit balance OK 22Further income tax paid when Maori authority no longer Maori authority OK 23Further income tax paid satisfying liability for income tax OK 24Income tax paid satisfying liability for further income tax

Table O17: Maori authority credits

Table O18: Maori authority debits

Memorandum accounts of consolidated groups

OP 1Memorandum accounts of consolidated groups OP 2When credits and debits arise only in group accounts

Introductory provisions

OP 3Changes in consolidated imputation groups OP 4Resident imputation subgroups OP 5When credits and debits arise only in consolidated imputation group accounts OP 6Provisions applying to consolidated imputation groups

Imputation credits of consolidated imputation groups

OP 7Consolidated ICA payment of tax OP 8Consolidated ICA deposit in tax pooling account OP 9Consolidated ICA transfer from tax pooling account OP 10Consolidated ICA allocation from company with overpaid provisional tax OP 11Consolidated ICA payment of further income tax OP 11BAConsolidated ICA payment of multinational top-up tax OP 11BConsolidated ICA expenditure on research and development OP 11CConsolidated ICA credit for research and development tax credit OP 12Consolidated ICA dividend derived with imputation credit OP 13Consolidated ICA dividend derived with FDP credit OP 14Consolidated ICA payment of FDP OP 15Consolidated ICA replacement payment to company under share-lending arrangement OP 16Consolidated ICA credit transfer to company OP 16BConsolidated ICA credit transfer to departing consolidated imputation group for unused tax payment OP 17Consolidated ICA resident withholding tax withheld OP 18Consolidated ICA transfer from group company’s FDP account OP 19Consolidated ICA transfer from group’s FDP account OP 20Consolidated ICA transfer from group company’s policyholder credit account OP 21Consolidated ICA transfer from group’s policyholder credit account OP 22Consolidated ICA transfer from group company’s ICA OP 23Consolidated ICA elimination of double debit OP 24Consolidated ICA reversal of tax advantage arrangement OP 25Consolidated ICA non-resident withholding tax withheld OP 26Consolidated ICA payment of amount of tax for schedular payment OP 27Consolidated ICA payment of schedular income tax liability

Imputation debits of consolidated imputation groups

Table O19: imputation credits of consolidated imputation groups

Table O20: imputation debits of consolidated imputation groups

Introductory provisions

OP 51FDP accounts of consolidated FDP groups OP 52Choosing to stop being consolidated FDP group OP 53When group company emigrates OP 54When credits and debits arise only in consolidated FDP group accounts OP 55Provisions applying to consolidated FDP groups

FDP credits of consolidated FDP groups

OP 56Consolidated FDPA payment of FDP OP 57Consolidated FDPA payment of further FDP OP 58Consolidated FDPA dividend derived with FDP credit OP 59Consolidated FDPA group company’s credit OP 60Consolidated FDPA credit transfer to company OP 61Consolidated FDPA transfer from group’s CTR account OP 62Consolidated FDPA transfer for net foreign attributed income OP 63Consolidated FDPA reversal of tax advantage arrangement

FDP debits of consolidated FDP groups

Table O21: FDP credits of consolidated FDP groups

Table O22: FDP debits of consolidated FDP groups

Introductory provisions

OP 78CTR accounts of consolidated groups OP 79When credits and debits arise only in CTR group accounts OP 80Provisions applying to consolidated groups with CTR accounts

CTR credits of consolidated groups

OP 81Consolidated CTRA tax credit for conduit tax relief OP 82Consolidated CTRA reduction of FDP OP 83Consolidated CTRA dividend derived with CTR credit OP 84Consolidated CTRA group company’s credit OP 85Consolidated CTRA transfer from group’s FDP account OP 86Consolidated CTRA reversal of tax advantage arrangement

CTR debits of consolidated groups

OP 87Consolidated CTRA payment of dividend OP 88Consolidated CTRA transfer to group’s FDP account OP 89Consolidated CTRA adjustment for conduit tax relief OP 90Consolidated CTRA group company’s debit OP 91Consolidated CTRA increase in resident shareholding OP 92Consolidated CTRA breach of CTR ratio OP 93Consolidated CTRA tax advantage arrangement OP 94Consolidated CTRA final balance

Consolidated groups’ FDP payments and refunds

OP 95FDP payable for credits and debits in group’s CTR account OP 96Refund on transfer from group’s FDP account

Table O23: conduit tax relief credits of consolidated groups

Table O24: conduit tax relief debits of consolidated groups

Introductory provisions

OP 97Branch equivalent tax accounts of consolidated BETA groups OP 98Choosing to stop being consolidated BETA group OP 99When credits and debits arise only in branch equivalent tax group accounts

Branch equivalent tax credits of consolidated BETA groups

OP 100Consolidated BETA payment of income tax on foreign income OP 101Consolidated BETA payment of income tax OP 102Consolidated BETA remaining debit balances OP 103Consolidated BETA refund of FDP OP 104Consolidated BETA credit for loss of shareholder continuity

Treatment by consolidated BETA groups of BETA debits from conduit relief

OP 104BConsolidated BETA group with debit balance, including debits from conduit relief, in certain income years

Branch equivalent tax debits of consolidated BETA groups

OP 105Consolidated BETA payment of FDP OP 106Consolidated BETA reduction of FDP OP 107Consolidated BETA refund of income tax OP 108Consolidated BETA debit for loss of shareholder continuity

Debit if credit balance at beginning of first affected income year

OP 108BConsolidated BETA group with credit balance at beginning of first affected income year

Table O25: branch equivalent tax credits of consolidated BETA groups

Table O26: branch equivalent tax debits of consolidated BETA groups

Introductory provision

OP 109Policyholder credit accounts of consolidated groups

Policyholder credits of consolidated groups

OP 110Consolidated PCA transfer from imputation credit account OP 111Consolidated PCA transfer from FDP account OP 112Consolidated PCA group company’s credit OP 113Consolidated PCA maximum deficit debit in FDP account OP 114Consolidated PCA reduced deficit debit in FDP account

Policyholder debits of consolidated groups

OP 115Consolidated PCA payment of tax relating to policyholder base OP 116Consolidated PCA transfer to imputation credit account

Table O27: policyholder credits of consolidated groups

Table O28: policyholder debits of consolidated groups

Terminating provisions

OZ 1No imputation credit for pre-imputation tax paid OZ 2No imputation debit for pre-imputation refund OZ 3Overpaid income tax for pre-imputation income year OZ 4Terminating modifications to debits for loss of shareholder continuity OZ 5ASCA lost excess available subscribed capital OZ 6ASCA redemption of unused investments OZ 7Memorandum accounts in transitional period OZ 7BMaori authority credit ratios for transitional period OZ 8Attaching imputation credits: maximum permitted ratio OZ 9Benchmark dividends: ratio change OZ 10Modifying ratios for imputation credits OZ 11Tax credits for imputation credits OZ 12Tax credits for non-resident investors OZ 13Fully credited dividends: modifying actual ratio OZ 14Dividends from qualifying companies OZ 15Attaching imputation credits and notional distributions: modifying amounts OZ 16BETA reductions OZ 17CTRA reductions OZ 18Credit-back of PCA balance

Part R:
General collection rules

General withholding and payment obligations

RA 1What this Part does RA 2Amounts treated as income tax RA 3Terminal tax obligations RA 4Provisional tax obligations RA 5Tax obligations for employment-related taxes RA 6Withholding and payment obligations for passive income RA 6BWithholding and payment obligations for retirement scheme contributions RA 6CWithholding and payment obligations for residential land RA 7Payment of tax by public authorities RA 8Liability of persons receiving payments or benefits RA 9Treatment of amounts withheld as received RA 10When obligations not met RA 11Adjustment to correct errors: certain underpayments RA 12Adjustment to correct errors: certain excess amounts RA 13Payment dates for terminal tax RA 14Payment dates for provisional tax RA 15Payment dates for interim and other tax payments RA 16Payment date when taxable activity ends RA 17Payment date when RWT-exempt status ends RA 18Payment date for emigrating companies RA 19Refunds of excess amounts or when amounts mistakenly paid RA 20Amalgamation of companies RA 21Regulations RA 22Limits on application of other provisions for purposes of PAYE rules RA 23Application of other provisions for purposes of ESCT rules and NRWT rules RA 24Application of other provisions for purposes of RSCT rules

Terminal tax

RB 1Payment of terminal tax RB 2Income tax liability for non-filing taxpayers for non-resident passive income RB 3Schedular income tax liability for filing taxpayers for non-resident passive income RB 4Using refunds to satisfy tax liabilities

Provisional tax

RC 1What this subpart does RC 2Provisional tax rules and their application RC 3Who is required to pay provisional tax?RC 4Choosing to pay provisional tax RC 5Methods for calculating provisional tax liability RC 6Standard method RC 7Estimation method RC 7BAIM method RC 8GST ratio method RC 9Provisional tax payable in instalments

Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 10Calculating amount of instalment under standard and estimation methods RC 10BCalculating amount of instalment for periods using AIM method RC 11Calculating amount of instalment using GST ratio RC 12Voluntary payments RC 13Paying 2 instalments for tax year RC 14Paying 1 instalment for tax year RC 15Choosing to use GST ratio RC 16Who may use GST ratio?RC 17When GST ratio must not be used RC 18Changing calculation method RC 19Disposal of assets RC 20Calculating residual income tax in transitional years RC 21Paying provisional tax in transitional years RC 22Calculating instalments in transitional years: standard method RC 23Calculating instalments in transitional years: estimation method RC 24Calculating instalments in transitional years: GST ratio method RC 25Consequences of change in balance date RC 26Registering for GST or cancelling registration RC 27Payment of provisional tax instalments when GST cycle changed RC 28Provisional tax rules and consolidated groups RC 29Residual income tax of consolidated groups RC 30Consolidated groups using estimation method RC 31Consolidated groups using GST ratio method RC 32Wholly-owned groups of companies RC 33Amalgamated companies: calculating residual income tax RC 34Attribution rule for income from personal services RC 35Further income tax credited to provisional tax liability RC 35BTreatment of overpaid provisional tax instalments calculated using AIM method RC 36Persons affected by adverse events RC 37Availability of early-payment discounts RC 38Crediting income tax with early-payment discount RC 39Credit treated as payment of income tax RC 40Some definitions

Employment-related taxes

RD 1What this subpart does

Introductory provisions

RD 2PAYE rules and their application RD 3PAYE income payments RD 3BShareholders who are employees, for some companies: income other than PAYE RD 3CShareholders who are employees, for some companies: PAYE and income other than PAYE RD 4Payment of amounts of tax to Commissioner

Types of PAYE income payments

RD 5Salary or wages RD 6Certain benefits and payments RD 7Extra pay RD 7BTreatment of employee share schemes RD 8Schedular payments RD 8BTreatment of PAYE-related overpayments

Calculating amounts of tax

RD 9Maximum amount RD 10Amounts of tax for PAYE income payments RD 10BAmounts of tax for schedular payments RD 10CCalculating amounts of tax following changes to rates or thresholds RD 11Amount of tax in certain circumstances

Adjustments for certain PAYE income payments

RD 12Multiple payments of salary or wages RD 13Advance payments RD 13BAdjustments for payroll donations RD 14Changes to tax rates for salary or wages RD 15Payments of salary or wages in pay periods RD 16Payments to private domestic workers RD 17Payment of extra pay with other PAYE income payments RD 18Schedular payments without notification RD 19Schedular payments to non-resident entertainers RD 20Schedular payments to subcontractors RD 20BTreatment of certain support payments made for period of more than 1 year RD 20CPayments of recalculated main benefit

Paying amounts of tax

RD 21When amounts of tax not withheld or payment insufficient RD 22Providing employment income information to Commissioner RD 23Bonds given by employers of certain non-resident employees RD 24Exemptions for non-resident contractors

Introductory provisions

RD 25FBT rules and their application RD 26Liability for FBT

Value of fringe benefits

RD 27Determining fringe benefit values RD 28Private use of motor vehicle: calculation methods RD 29Private use of motor vehicle: formulas RD 30Private use of motor vehicle: 24-hour period RD 31Motor vehicle test period RD 32Replacement motor vehicles RD 33Subsidised transport RD 34Employment-related loans: value using prescribed interest rates RD 35Employment-related loans: value using market interest rates RD 36Repayment of employment-related loans RD 37Contributions to superannuation schemes RD 38Contributions to funds, trusts, and insurance premiums RD 39Benefits provided by charitable organisations RD 40Goods RD 41Services RD 42Goods at staff discount RD 43Goods on special with staff discount RD 44Goods disposed of by group companies RD 45Unclassified benefits RD 46Adjustments for unclassified benefits on amalgamation

Attributing fringe benefits to employees

RD 47Attribution of certain fringe benefits RD 48When attributed benefits provided to more than 1 employee RD 49Application of thresholds to attributed benefits RD 50Employer’s liability for attributed benefits RD 51Calculation of all-inclusive pay RD 52Calculation for certain employees when information lacking RD 53Pooling non-attributed benefits

Taxable value of fringe benefits

RD 54Value of and payments towards fringe benefits RD 55Private use of motor vehicle: taxable value in cases of part ownership RD 56Private use of motor vehicle: when schedular value not used RD 57Private use of motor vehicle: when schedular value used

Options for payment of FBT

RD 58Single rate option RD 59Alternate rate option RD 60Close company option RD 61Small business option RD 62Changes in payment periods RD 62BObligations of cross-border employees when FBT liability not paid RD 63When employer stops employing staff

Introductory provisions

RD 64ESCT rules and their application RD 65Employer's superannuation cash contributions RD 66Complying fund rules

Calculating amounts of tax

RD 67Calculating amounts of tax for employer’s superannuation cash contributions RD 67BCalculating amounts of tax following changes to rates or thresholds RD 68Choosing to have amount treated as salary or wages RD 69Choosing different rates for employer's superannuation cash contributions RD 70Calculating amounts of tax on failure to withhold RD 71Amounts of tax treated as paid to and received by superannuation funds RD 71BObligations of cross-border employees when amounts of tax not paid RD 72Recovery of tax paid by superannuation funds

Withholding tax on resident passive income (RWT)

RE 1RWT rules and their application RE 2Resident passive income RE 3Obligation to withhold RWT RE 4Persons who have withholding obligations RE 5No withholding obligation in certain circumstances RE 6When obligation to withhold unreasonable RE 7When resident passive income paid to trustees RE 8When resident passive income paid to nominees RE 9Agents’ or trustees’ obligations in relation to certain dividends RE 10Special rule relating to payments of interest RE 10BAmounts withheld from distributions to holders of FIF attributing interests RE 10CObligations of custodial institutions in relation to certain payments of investment income RE 11Notification by companies RE 12Interest RE 13Dividends other than non-cash dividends RE 14Non-cash dividends other than certain share issues RE 14BCombined cash and non-cash dividends RE 14CNon-cash dividends distributed through intermediaries RE 15Bonus issues in lieu and shares issued under profit distribution plans RE 16Taxable Maori authority distributions RE 17Replacement payments under share-lending arrangements RE 18Payments made by RWT proxies RE 18BCapital value increase under inflation-indexed instruments: RWT cap RE 19Choosing other rates RE 20Paying RWT RE 21Basis for payment of RWT RE 22When payment treated as non-resident passive income RE 23When amount of tax treated as FDP credit RE 24When amount of tax treated as Maori authority credit RE 25When amount of tax treated as imputation credit RE 26Payment by proxy RE 27RWT-exempt status RE 28When RWT-exempt status ends RE 29Establishing whether persons have RWT-exempt status RE 30When unincorporated bodies have RWT-exempt status RE 31When limited partnerships have RWT-exempt status

Withholding tax on non-resident passive income (NRWT)

RF 1NRWT rules and their application RF 2Non-resident passive income RF 2BNon-resident financial arrangement income: outline and concepts RF 2CMeaning of non-resident financial arrangement income RF 3Obligation to withhold amounts of tax for non-resident passive income RF 4Non-resident passive income received by agents and others RF 5When amounts of tax already withheld RF 6When amounts of tax not withheld or partly withheld RF 7General rate for NRWT RF 8Certain dividends RF 9When dividends fully imputed RF 10Non-cash dividends RF 11Dividends paid to companies associated with non-residents RF 11BDividends paid by companies in certain situations RF 11BBCertain dividends paid to dual resident companies RF 11CInterest paid by non-resident companies to non-residents RF 12Interest paid by approved issuers or transitional residents RF 12BInterest derived jointly with residents RF 12CAmount derived from non-resident life insurer becoming resident RF 12DDetermining amount of non-resident financial arrangement income RF 12EWhen non-resident financial arrangement income treated as paid RF 12FAdjustments: first year additional amounts RF 12GChoosing to treat income as non-resident financial arrangement income RF 12HMeaning of related-party debt RF 12IConcepts used for definition of related-party debt RF 12JTreatment of certain payments made under indirect associated funding arrangements RF 13Basis for payment of amounts of tax for non-resident passive income RF 14Treatment of FDP credits RF 15Commissioner’s power to vary amounts of tax RF 16Relationship with RSCT rules

Payments for foreign dividends (FDP)

RG 1FDP rules and their application RG 2Foreign dividends RG 3Obligation to pay FDP RG 4Calculating amount of FDP RG 5Credit balance in branch equivalent tax account RG 6Using loss balances RG 7Reduction of payments for conduit tax relief

Withholding tax on retirement scheme contributions

RH 1RSCT rules and their application RH 2Retirement scheme contributions RH 3Retirement savings schemes RH 4Retirement scheme contributors

Calculating amounts of tax

RH 5Calculating amounts of tax for retirement scheme contribution RH 6Calculating amounts of tax on failure to withhold

Residential land withholding tax

RL 1Residential land withholding tax RL 2Vendors: who must pay, and how?RL 3Associated persons: who must pay, and how?RL 4How much RLWT?RL 5Paying RLWT RL 6Commissioner repaying RLWT

Refunds

RM 1What this subpart does RM 2Refunds for overpaid tax RM 3Refunds for overpaid FDP RM 4Overpayment on amended assessment RM 5Overpayment on income statements RM 6Refunds after 4-year period ends RM 6BRefunds for overpaid AIM method instalments RM 7Refunds to PAYE intermediaries RM 8Overpaid RWT or NRWT RM 9Calculations for attributed and non-attributed fringe benefits RM 10Using refund to satisfy tax liability RM 11Using GST refund to pay instalment of provisional tax RM 12Reduction in provisional tax liability

ICA companies

RM 13Limits on refunds for ICA companies RM 14Limits on refunds when company stops being ICA company RM 15Changes in credit balances RM 16Treatment of amounts not refunded RM 17Treatment of further income tax paid

Companies receiving foreign dividends

RM 18Limits on refunds related to foreign dividends RM 19Treatment of financial arrangements RM 20Treatment of amounts not refunded RM 21Refunds when loss balances used to reduce net income

Maori authorities

RM 22Limits on refunds for Maori authorities RM 23Limits on refunds when Maori authority stops being Maori authority RM 24Increase in credit balances RM 25Treatment of amounts not refunded RM 26Treatment of further income tax paid RM 27Application when no credits arise

Persons with policyholder credit accounts

RM 28Limits on refunds for PCA persons RM 29Limits on refunds when person no longer PCA person RM 30Changes in credit balances RM 31Treatment of amounts not refunded

Qualifying companies

RM 32Application of sections RM 13 to RM 17 to qualifying companies

Certain unit trusts and group investment funds

RM 33Limits on refunds for certain unit trusts and group investment funds

Intermediaries

RP 1What this subpart does

Obligations and treatment of PAYE intermediaries

RP 2PAYE intermediaries RP 3Requirements for listed PAYE intermediaries RP 4Payment of subsidies to certain PAYE intermediaries RP 5Subsidy claims RP 6Operation of PAYE intermediaries’ trust accounts

Employers’ responsibilities

RP 7General responsibilities of employers RP 8Information for PAYE intermediaries RP 9Authorised transfers from accounts RP 10When transfers from accounts not authorised RP 11Employer's superannuation cash contributions RP 12When payments made directly to employees

PAYE intermediaries’ responsibilities

RP 13General responsibilities of PAYE intermediaries RP 14Collection, payment, and information requirements RP 15When employers have authorised transfers from accounts RP 16Obligations for employer’s superannuation contributions RP 17Tax pooling intermediaries RP 17BTax pooling accounts and their use RP 18Deposits in tax pooling accounts RP 19Transfers from tax pooling accounts RP 19BTransfers for certain expected tax liabilities RP 20Declining, amending, or reversing transfers RP 21Refunds from tax pooling accounts

Terminating provisions

RZ 1Certain elections to become person with provisional tax liability RZ 2Amount of provisional tax based on 1997–98 or earlier tax year RZ 3Standard method: 2010–11 to 2012–13 income years RZ 4GST ratio method: 2010–11 to 2013–14 income years RZ 5Calculating amounts under standard method: 2010–11 to 2012–13 income years RZ 5BStandard method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year RZ 5CGST ratio method: new personal tax rate persons from 1 October 2008 to end 2009–10 income year RZ 5DStandard method or GST method: transition for Maori authorities RZ 6Limits on refunds: transitional dates RZ 7Withdrawal income RZ 8Payment and rate of withdrawal tax RZ 9Relief in certain cases RZ 10Recovery of amounts payable to Commissioner RZ 11Refunds for life insurers RZ 12Adjustments to interest in requests made after commencement RZ 13Treatment of prepayments RZ 14Listed PAYE intermediaries: transitional provision RZ 15Treatment of certain refunds made on income statements: 1 April 2008 to 31 March 2019 RZ 16Treatment of certain refunds not paid within 4-year period: 1 April 2008 to 31 March 2013

Part Y:
Definitions and related matters

General definitions

YA 1Definitions YA 2Meaning of income tax varied YA 3Treatment of qualifying company election tax, FBT, FDP penalty tax, imputation penalty tax, and withdrawal tax YA 4General rules for giving information or communicating matters YA 5General rule: capacity of trustees

Associated persons and nominees

Table Y1: Associated person rules

YB 1What this subpart does YB 2Two companies YB 3Company and person other than company YB 4Two relatives YB 5Person and trustee for relative YB 6Trustee and beneficiary YB 7Two trustees with common settlor YB 8Trustee and settlor YB 9Settlor and beneficiary YB 10Who is a settlor?YB 11Trustee and person with power of appointment or removal YB 12Partnership and partner YB 13Look-through companies and holders of interests YB 14Tripartite relationship YB 15Exceptions for employee trusts YB 16Exceptions for certain trusts and charitable organisations YB 16BLimited partnerships treated as companies YB 17Partnerships: partnership and associate of partner YB 18Persons habitually acting together: 1988 version provisions YB 19Person and controlled non-profit organisation: 1990 version provisions YB 20Some definitions YB 21Transparency of nominees

Measurement of company ownership

YC 1Meaning of control YC 2Voting interests YC 3Market value interests YC 4Look-through rule for corporate shareholders YC 5Treatment of special corporate entities YC 5BTreatment of mixed-ownership enterprises YC 6Disregarding certain securities YC 7When sections YC 8 to YC 19B apply YC 8Death of share or option holder YC 9Shares or options held by trustees YC 10Shareholders holding less than 10% direct interests YC 11No look-through rule for companies in certain cases YC 12Public unit trusts YC 13Corporate spin-outs YC 14Disregarding concessionary rules YC 15Directors’ knowledge of failure to meet requirements of continuity provision YC 16Disregarding market value changes YC 17Demutualisation of insurers YC 18Reverse takeovers YC 18BCorporate reorganisations not affecting economic ownership YC 18CRailways restructure not affecting Crown economic ownership YC 19Legislative conversion of foreign company of proprietors YC 19BTreatment when certain trusts terminated YC 20Credit account continuity provisions: excluded fixed rate securities

Residence and source in New Zealand

YD 1Residence of natural persons YD 2Residence of companies YD 3Country of residence of foreign companies YD 3BACountry of residence of joint trustees YD 3BCrown YD 4Classes of income treated as having New Zealand source YD 4BMeaning of permanent establishment YD 5Apportionment of income derived partly in New Zealand YD 5BAttribution of income and expenditure to permanent establishment in New Zealand YD 6Apportionment of income from sea transport YD 7Apportionment of film rental income YD 8Apportionment of premiums derived by non-resident general insurers YD 8BApportionment of life insurance premiums derived by Lloyd’s of London YD 9Residence of CTR company shareholders YD 10Meaning of CTR holding company YD 11Meaning of CTR group member

References to balance dates and years

YE 1References to balance dates and years

Currency conversion

YF 1General rules for currency conversion YF 2Other rules for currency conversion: approved alternatives

Terminating provisions

YZ 1Source rule for interest YZ 2Saving of effect of section 394L(4A) of Income Tax Act 1976 YZ 3Saving effect of section DF 5 of Income Tax Act 1994 YZ 4Saving of effect of certain terms defined in Canterbury Earthquake Recovery Act 2011 YZ 5New Zealand Memorial Museum Trust — Le Quesnoy: sunset

Part Z:
Repeals, amendments, and savings

ZA 1Repeals ZA 2Consequential amendments to other enactments ZA 3Transitional provisions ZA 4Saving of binding rulings ZA 5Saving of accrual determinations ZA 6Comparative tables of old and new provisions

Schedule 1:
Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

Schedule 2:
Basic tax rates for PAYE income payments

Schedule 3:
Payment of provisional tax and terminal tax

Schedule 4:
Standard rates of tax for schedular payments

Schedule 5:
Fringe benefit values for motor vehicles

Schedule 6:
Prescribed rates: PIE investments and retirement scheme contributions

Schedule 10:
Straight-line equivalents of diminishing value rates of depreciation

Schedule 11:
New banded rates of depreciation

Schedule 12:
Old banded rates of depreciation

Schedule 13:
Depreciable land improvements

Schedule 14:
Depreciable intangible property

Schedule 15:
Excepted residential land

Schedule 17:
Types and classes of livestock

Schedule 18:
Categories of livestock for which national standard costs to be declared

Schedule 18B:
Premier yearling sales

Schedule 18C:
Breeds and classes of bloodstock

Schedule 19:
Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant or making of noise

Schedule 20:
Expenditure on farming, horticultural, aquacultural, and forestry improvements

Schedule 21:
Excluded activities for research and development activities tax credits

Schedule 21:
Expenditure and activities related to research and development

Schedule 21B:
Expenditure or loss for research and development tax credits

Schedule 22:
Proscribed R&D activities

Schedule 23:
Meaning of permanent establishment

Schedule 24:
International tax rules: grey list countries

Schedule 25:
Foreign investment funds

Schedule 25B:
Items modifying global anti-base erosion model rules

Schedule 26:
Low tax jurisdictions or territories

Schedule 27:
Countries and types of income with unrecognised tax

Schedule 28:
Requirements for complying fund rules

Schedule 29:
Portfolio investment entities: listed investors

Schedule 31:
Annualised equivalent amount for Part M

Schedule 32:
Recipients of charitable or other public benefit gifts

Schedule 33:
Default fractions of foreign superannuation withdrawals

Schedule 34:
Community housing trusts and companies: income and assets of beneficiaries and clients

Schedule 35:
Public purpose Crown-controlled companies

Schedule 36:
Government enterprises

Schedule 37:
Statutory producer boards

Schedule 38:
Acts exempting income from tax: income included in family scheme income

Schedule 39:
Items for purposes of definition of special excluded depreciable property

Schedule 48:
Enactments repealed

Schedule 49:
Enactments amended

Schedule 50:
Amendments to Tax Administration Act 1994

Schedule 51:
Identified changes in legislation

Schedule 52:
Comparative tables of old and rewritten provisions

Summary of changes

Income Tax Act 2007

Deductions - Interest incurred in relation to certain land

DH 11: Denied amounts: treatment upon disposal of disallowed residential property

You could also call this:

"Selling a property you can't claim on your tax: what happens next"

You have a property that you cannot claim as a deduction. If you sell this property, you need to know how it affects your tax. The rules for this changed on 1 April 2025, as stated in the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS675475.

This page was last updated on 5 April 2026 — View changes

Topics:

Money and consumer rights > TaxesHousing and property > Buying and selling homes

DH 10: Limited denial of deductibility: simplified calculation of interest affected, or

"A law about limiting tax deductions has been cancelled."

DH 12: Valuation, or

"What 'Valuation' means in the law"

Part DDeductions
Interest incurred in relation to certain land

DH 11Denied amounts: treatment upon disposal of disallowed residential property (Repealed)

Notes

Section DH 11: repealed, on 1 April 2025, by section 48 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).