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Crown Entities Act 2004

Crown entity reporting and financial obligations - Other provisions for financial accountability - Miscellaneous

166: Capital charge payable by certain statutory entities

You could also call this:

"Some organisations must pay a fee to the government for the assets they own."

Illustration for Crown Entities Act 2004

You might have to pay a capital charge if you are a certain type of statutory entity. This only happens if the Minister of Finance tells you in writing that you have to pay it. The Minister of Finance decides how much you pay and when you pay it, based on rules about capital charges. You pay this charge to the Crown for some or all of your net assets.

If someone gives you something worth money, and it is not the Crown or a certain type of entity described in the Public Finance Act 1989, you do not have to pay a capital charge for it. The Minister of Finance cannot make you pay for gifts like this unless the Crown says you do not have to pay for them. You do not pay a capital charge for things you get as gifts from people, except in certain situations.

When we talk about net assets, we mean the total value of everything you own, minus what you owe to others. This is calculated using normal accounting rules. Before the Minister of Finance can make you pay a capital charge, they must talk to you about it first. They also have to tell the House of Representatives that they are making you pay the charge.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330572.

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Part 4Crown entity reporting and financial obligations
Other provisions for financial accountability: Miscellaneous

166Capital charge payable by certain statutory entities

  1. This section applies to a statutory entity only if the Minister of Finance has notified the statutory entity in writing that it is now subject to a capital charge under this section.

  2. A statutory entity must pay to the Crown a capital charge in respect of the whole or part of the net assets of the entity of an amount, and at the times, prescribed by the capital charge rules.

  3. Unless otherwise compensated by the Crown, the Minister of Finance may not require a statutory entity to pay a capital charge in respect of the net value of assets acquired by way of gift from any person other than the Crown or an entity described in section 27(3) of the Public Finance Act 1989.

  4. In this section, net assets means, in relation to a Crown entity, the total assets of the entity, less its total liabilities, as defined in accordance with generally accepted accounting practice.

  5. The Minister of Finance must—

  6. consult with the statutory entity before notifying the statutory entity that it is subject to a capital charge under this section; and
    1. present a copy of the notification to the House of Representatives as soon as practicable after the date on which the notification is given.