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Local Government (Water Services) Act 2025

Planning, reporting, and financial management - Financial matters - Income tax

255: Consequences of transfer for purposes of Inland Revenue Acts

You could also call this:

"What happens with taxes when water services are transferred"

Illustration for Local Government (Water Services) Act 2025

When a territorial authority transfers the role of providing water services to a water organisation, you are treated as the same person for tax purposes. This means the territorial authority and the water organisation are considered the same for the Inland Revenue Acts, as defined in section 3(1) of the Tax Administration Act 1994. The same rule applies when a water organisation transfers the role to another water organisation or to a territorial authority. You are treated as the same person in these situations for tax purposes. This rule will stop applying 10 years after it starts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004425.

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Part 4Planning, reporting, and financial management
Financial matters: Income tax

255Consequences of transfer for purposes of Inland Revenue Acts

  1. For the purposes of the Inland Revenue Acts (as defined in section 3(1) of the Tax Administration Act 1994), the following entities are treated as the same person in the specified circumstances:

  2. when a territorial authority transfers the role of providing water services to a water organisation, the territorial authority and the water organisation:
    1. when a water organisation transfers the role of providing water services to another water organisation, the 2 water organisations:
      1. when a water organisation transfers the role of providing water services to a territorial authority, the water organisation and the territorial authority.

        1. This section, and the cross-heading above it, is repealed on the date that is 10 years after the date on which this section comes into force.

        Notes