New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) Where, within the period of 2 years beginning with the day on which this Act comes into force, Te Runanga o Ngai Tahu effects the disposition of any property vested in it by this Act and, immediately after such disposition, that property is owned—
(a) by any company or other entity wholly-owned, directly or indirectly, by Te Runanga o Ngai Tahu; or
(b) by any charitable trust, trust, or other similar form of asset ownership established primarily for the benefit of members of Ngai Tahu Whanui—
(hereafter in this section referred to as a subsidiary), this section shall apply in respect of that disposition.
(2) Where, within the period of 2 years beginning with the day on which this Act comes into force, a subsidiary, immediately after acquiring property by virtue of a disposition of the kind described in subsection (1), effects the disposition of that property and, immediately after the disposition of that property by that subsidiary, that property is owned by another subsidiary, this section shall apply in respect of the disposition of that property by that subsidiary.
(3) A disposition to which this section applies—
(a) shall not be treated, for the purposes of the Stamp and Cheque Duties Act 1971 and the Estate and Gift Duties Act 1968, as a sale, disposition, or transfer by the person effecting the disposition to which this section applies; and
(b) shall, unless exempt from goods and services tax, be treated as a supply charged with tax at the rate of 0% for the purposes of the Goods and Services Tax Act 1985; and
(c) shall be treated, for the purposes of the Income Tax Act 2007, in order to ensure that the person effecting the disposition to which this section applies is not subject to income tax in respect of any such reorganisation of asset ownership occurring after the commencement of this Act, as having been made for a consideration equal to the consideration for which the property was deemed, by virtue of section 30 of this Act or this section, to have been acquired by that person reduced by an amount equal to the deductions for depreciation described in subsection (4).
(4) The deductions for depreciation referred to in subsection (3) are such deductions for depreciation, in respect of or in relation to the property, as have been allowed or deducted, or deemed under this Act to have been allowed or deducted, in calculating the assessable income derived, or deemed under this Act to have been derived, by the person effecting the disposition of the property; and the acquirer of the property to which the disposition relates shall be deemed to have been allowed (as if in the calculation of assessable income of that acquirer) deductions for depreciation, in respect of or in relation to the property, equal to those of the person effecting the disposition of the property.
Section 31(3)(c): amended (effective for 2008–09 income year and later), on 1 April 2008, by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
