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Tax Administration Act 1994

Determinations

90: Determinations in relation to financial arrangements

You could also call this:

"The Commissioner makes decisions about financial arrangements for tax purposes."

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The Commissioner can make decisions about financial arrangements. You can apply to the Commissioner to make a decision about your financial arrangement. The Commissioner's decision is binding on you for tax purposes, unless it is changed or cancelled.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353323.

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Part 5Determinations

90Determinations in relation to financial arrangements

  1. For the purposes of the old financial arrangements rules, the Commissioner may determine the following matters:

  2. how the yield to maturity method is to be applied to any financial arrangement or class of financial arrangement for the purposes of section EZ 35(2) (except the proviso) of the Income Tax Act 2007:
    1. how the straight-line method is to be applied to any financial arrangement or class of financial arrangement for the purposes of section EZ 35(3) of that Act:
      1. the method for determining income deemed to be derived or expenditure deemed to be incurred in relation to any financial arrangement or class of financial arrangement for the purposes of section EZ 35(6) (except the proviso) of that Act that results in the allocation to each income year of an amount that has regard to the tenor of section EZ 35(2) of that Act:
        1. the method or methods that may be applied in determining income deemed to be derived or expenditure deemed to be incurred in relation to any financial arrangement or arrangements, or class or classes of financial arrangements, for the purposes of the provisos to subsections (2) and (6)(a) of section EZ 35 of that Act (which financial arrangements may be specified or differentiated by the Commissioner by reference to the type of financial arrangement, any characteristics of such arrangements, the purpose or purposes for which any such arrangement was originally acquired or issued, or otherwise):
          1. the market, the method or methods, and the source of information used to determine market values that may be used for the purposes of section EZ 35(7) of that Act:
            1. whether or not, and in what circumstances, a method or methods may qualify for allowance by the Commissioner under section EZ 35(8) of that Act, and the circumstances or conditions under which a change in any such method may qualify for approval by the Commissioner:
              1. where an excepted financial arrangement is part of a financial arrangement, the method for determining the part of—that is attributable to the excepted financial arrangement:
                1. the income, gain or loss, or expenditure:
                  1. the acquisition price:
                    1. the consideration receivable by the holder or payable by the issuer,—
                    2. the method for determining the discounted value of amounts payable for—
                      1. goods or services under trade credits; or
                        1. property that is acquired or sold under agreements for the sale and purchase of property or specified options:
                        2. the method for determining the discounted value of hire purchase payments payable under any hire purchase agreement:
                          1. the method for determining under sections FM 18 to FM 20 of that Act the consideration to be taken into account under section EZ 38 of that Act in the case of a disposition of a financial arrangement between members of the same consolidated group of companies:
                                1. and the class of persons by whom such determination may be applied: provided that the acceptance by the Commissioner of a method under the provisos to section EZ 35(2) or (6) of that Act shall not constitute the making of a determination.

                              1. Any determination made under any of paragraphs (a), (c), (e), (g), (h), and (j) of subsection (1) shall be binding on persons for the purposes of the old financial arrangements rules.

                              2. Any person who issues or holds, or who intends to issue or hold, a financial arrangement may apply to the Commissioner to exercise the Commissioner's discretion to make a determination under subsection (1), and every such application shall be made in accordance with such procedure as may be prescribed by regulations made under this Act; or, if no such regulations have been made or the regulations do not provide for the eventuality that occurs, in accordance with such procedure as may be prescribed by the Commissioner.

                              3. Repealed

                              4. Repealed

                              5. The Commissioner may at any time—

                              6. make a determination that varies, cancels, restricts or extends in scope an earlier determination made under this section:
                                1. issue a notice that cancels a determination made under this section.

                                  1. A person who acquires or issues a financial arrangement before a determination or notice under subsection (6) comes into force is not required to apply the determination to the financial arrangement, or treat the notice as affecting the financial arrangement, until the date that is 4 years after the determination or notice comes into force.

                                  2. If the Commissioner makes a determination or notice under subsection (1) or (6) that is not secondary legislation,—

                                  3. it comes into force when it is signed by the Commissioner; and
                                    1. the Commissioner must give notice of it to the person to whom it applies as soon as is convenient.

                                      1. Repealed

                                      2. If a person has applied a determination under subsection (1), an assessment made in respect of the person must be in accordance with the determination.

                                      3. Subsection (9) does not apply if—

                                      4. since the determination came into force, the legislation on which the determination was based has been repealed or amended to the detriment of the person relying on the determination; or
                                        1. there was a material misrepresentation or omission in the application for the determination, whether intentional or not.

                                          1. The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements), unless they relate only to 1 or more named persons:

                                          2. a determination under subsection (1) or (6)(a):
                                            1. a notice under subsection (6)(b).

                                              Compare
                                              • 1976 No 65 s 64E
                                              Notes
                                              • Section 90(1): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                              • Section 90(1)(a): amended, 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 90(1)(b): amended, 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 90(1)(c): replaced, on (applying to 1997–98 and subsequent income years), by section 449 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                              • Section 90(1)(c): amended, 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 90(1)(c): amended (with effect on 1 April 2005), on (applying for income years corresponding to 2005–06 and subsequent tax years), by section 237(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                                              • Section 90(1)(c): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                              • Section 90(1)(d): replaced, on (applying to 1997–98 and subsequent income years), by section 449 of the Taxation (Core Provisions) Act 1996 (1996 No 67).
                                              • Section 90(1)(d): amended, 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 90(1)(d): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                              • Section 90(1)(d): amended, on (applying on and after 20 May 1999), by section 68(2) of the Taxation (GST and Miscellaneous Provisions) Act 2000 (2000 No 39).
                                              • Section 90(1)(e): amended, 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 90(1)(f): amended, 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 90(1)(g): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                              • Section 90(1)(j): amended, 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 90(1)(j): amended, on , by section 6(1) of the Tax Administration Amendment Act (No 3) 1995 (1995 No 77).
                                              • Section 90(1)(k): repealed, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                              • Section 90(1) proviso: amended, 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 90(2): amended, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
                                              • Section 90(4): repealed, on , by section 12 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                                              • Section 90(5): repealed, on , by section 12 of the Tax Administration Amendment Act (No 2) 1996 (1996 No 56).
                                              • Section 90(6): replaced, on , by section 104(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                                              • Section 90(6B): inserted, on , by section 104(1) of the Taxation (Venture Capital and Miscellaneous Provisions) Act 2004 (2004 No 111).
                                              • Section 90(6B): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                              • Section 90(7): replaced, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                              • Section 90(8): repealed, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                              • Section 90(9): replaced, on (applying to 2002–03 and subsequent income years), by section 205(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
                                              • Section 90(10): inserted, on (applying to 2002–03 and subsequent income years), by section 205(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
                                              • Section 90(10)(a): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                                              • Section 90(11): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).