6EExemptions granted by Commissioner

1. Subject to subsection (2), the Commissioner may grant an exemption from a provision of the Inland Revenue Acts if the Commissioner is satisfied that the exemption is reasonably necessary to do 1 or more of the following:

2. to remedy or mitigate the effect of an obvious error in a provision of the Inland Revenue Acts:
3. to give effect to the intended purpose or object of a provision of the Inland Revenue Acts, or to resolve ambiguity:
4. to reconcile an inconsistency between certain provisions of the Inland Revenue Acts, or between the relevant provision and an administrative practice of the Commissioner.

5. The Commissioner may grant the exemption only if the Commissioner is satisfied that—

6. the exemption—
   1. does not materially affect the intended scope or effect of the provisions to which it applies; and
   2. is not inconsistent with the intended purpose or object of the relevant provision; and
   3. has no, or has only negligible, fiscal implications for the Crown; and
   4. is the most appropriate way of addressing or resolving the issue at the time; and
7. the extent of the exemption is not broader than is reasonably necessary to address or resolve the issue that gave rise to it; and
8. for an exemption that applies to a person unless they choose not to apply it, the person has a reasonable opportunity to choose not to apply it; and
9. a consultative process has been undertaken as described in section 6F, unless the Commissioner has dispensed with the consultative process under section 6F(3); and
10. granting the exemption will not, in substance, have the effect of extending the period for which a modification previously made under section 6D, or an exemption previously granted under this section, applies.

11. An exemption made under subsection (1)—

12. must specify a period for which the exemption applies; and
13. must, despite section 6C(3), allow a person to whom the exemption is available to choose whether or not to apply the exemption by means set out in the exemption; and
14. may—
    1. include terms and conditions as the Commissioner thinks fit:
    2. state whether the exemption applies generally or is limited to a particular class of persons or circumstances:
    3. provide for transitional, savings, and related matters.

15. For the purposes of subsection (3)(a), a period for which an exemption applies—

16. must end no later than the end of the second income year after the income year corresponding to the tax year in which the exemption comes into force; and
17. may include a period before the date on which the exemption comes into force, but any period of retrospective application must not extend back further than the start of the income year corresponding to the tax year in which the exemption comes into force; and
18. subject to paragraph (b), may include a period before the date on which this section comes into force.

19. For the purposes of subsection (3)(b), an exemption may provide that it applies to a person to whom it is available—

20. unless the person chooses not to apply it; or
21. only if the person chooses to apply it.

22. An exemption under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

23. The Commissioner’s reasons for granting an exemption, and an explanation of the way in which the exemption complies with this section, must be published together with the exemption.