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CW 62B: Voluntary activities
or “Money you get as a volunteer to cover your expenses is usually tax-free”
You could also call this:

“Tax exemption for foreign-currency loan income used for certain residential properties”

If you earn money from a loan in a foreign currency, you might not have to pay tax on it in some cases. This applies when you use the borrowed money for disallowed residential property. You also need to be in a situation where you’re not allowed to claim a tax deduction for the interest you pay on this loan. The government has rules about when you can and can’t claim deductions for interest on loans used for residential property. If you meet all these conditions, the income you get from the foreign currency loan is considered exempt income, which means you don’t have to pay tax on it.

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Next up: CW 63: Avoidance arrangements

or “Rules to prevent unfair tax avoidance schemes”
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Part C Income
Exempt income

CW 62CIncome from foreign-currency loans used for disallowed residential property

  1. An amount of income of a person under section CC 3(1) (Financial arrangements) is exempt income if the person—

  2. derives the income from a financial arrangement that is a loan of foreign currency to the person; and
    1. uses the loan proceeds for disallowed residential property; and
      1. is denied by section DH 8(1) (Deduction not allowed) a deduction for interest incurred by the person under the financial arrangement.

        Notes
        • Section CW 62C: inserted (with effect on 27 March 2021), on , by section 59 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).