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Tax Administration Act 1994

Determinations

90AF: Imputation arrangement to obtain tax advantage

You could also call this:

"Stopping tax arrangements that are not fair"

Illustration for Tax Administration Act 1994

You can make arrangements to get tax advantages. The Commissioner can make decisions about these arrangements as described in section GB 35 of the Income Tax Act 2007. The Commissioner decides if the arrangement gives an account advantage or a tax credit advantage. You get a notice if the Commissioner makes a decision about your arrangement. The notice tells you about the decision and can be included with other tax notices. The Commissioner must give you notice as soon as they can. If they forget to give you notice, it does not change their decision. The Commissioner's decision can be about the amount of imputation credit in the arrangement. They can also decide which tax year the arrangement started in.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1264811.

Topics:
Money and consumer rights > Taxes
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"Waiting four years to apply new tax rules to existing financial arrangements"

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Part 5Determinations

90AFImputation arrangement to obtain tax advantage

  1. If an arrangement to obtain a tax advantage arises as described in section GB 35 of the Income Tax Act 2007, the Commissioner may make any of the following determinations:

  2. a determination whether the arrangement results in an account advantage, a tax credit advantage, or both:
    1. a determination whether a streaming arrangement as described in section GB 35(3) of that Act is subject to section GB 36(1) or (2) of that Act:
      1. a determination of the amount of the imputation credit that is subject to the arrangement:
        1. a determination of the tax year in which the arrangement commenced, being the year in which the first reasonably identifiable step in the arrangement took place.

          1. The Commissioner must give notice of any determination under subsection (1) to the company whose account is affected by the arrangement, as soon as is convenient.

          2. The notice may be included in—

          3. a notice of assessment under section 111(1); or
            1. a determination under section 104B.

              1. Failure to comply with subsection (2) does not invalidate the determination.

              Notes
              • Section 90AF: inserted, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
              • Section 90AF(1)(c): amended, on , by section 334 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).