Finance Act (No 2) 1990

Reprint
as at 1 April 2005

Coat of Arms of New Zealand

Finance Act (No 2) 1990

Public Act1990 No 73
Date of assent1 August 1990
Commencementsee section 1(2)
Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This Act is administered by the Treasury.

An Act to make provision with respect to public finances and other matters

1 Short Title and commencement

  • (1) This Act may be cited as the Finance Act (No 2) 1990.

    (2) Except as provided in sections 10(2), 11(2), and 12(2), this Act shall come into force on the day on which it receives the Royal assent.

2 Interpretation

  • In this Act, unless the context otherwise requires,—

    appointed day means the date appointed by the Governor-General under section 5

    the Bank means Post Office Bank Limited, a company incorporated under the Companies Act 1955; and includes a company that is a related company (within the meaning of section 2(5) of the Companies Act 1955) to that company

    bonus bonds means bonus bonds issued under the Public Finance Act 1989 in accordance with section 4 of the Post Office Bank Act 1987

    the Crown means Her Majesty the Queen in right of New Zealand

    Minister means the Minister of Finance

    Post Office bonus bonds means Post Office bonus bonds issued pursuant to the Post Office Act 1959 before 1 April 1987.

3 Meaning of approved unit trust

  • (1) In this Act approved unit trust means a unit trust established under the Unit Trusts Act 1960 of which the Bank is the manager under which net income is distributed among the unit holders, in whole or in part, by prizes determined by ballot and which is approved for the purposes of this Act by the Minister by notice in the Gazette.

    (2) The Minister shall not approve, under subsection (1), a unit trust that makes provision for interests to be held by persons who become unit holders by reason only of having been the holders of bonus bonds or Post Office bonus bonds unless—

    • (a) the Minister is satisfied that the rights conferred on those persons are not, subject to this Act, substantially different from the rights which those persons had as the holders of those bonds; and

    • (b) the unit trust deed provides that, for at least 2 years after the appointed day, the unit trust is required, if requested to do so, to buy back or redeem those interests deemed to have been issued to those persons.

    (3) For the purposes of the distribution of prizes retaining the characteristics of a lottery no unit in an approved unit trust shall have a better chance of winning a prize than 1 in 9 600.

    Section 3(3): substituted, on 8 August 1991, by section 28 of the Finance Act 1991 (1991 No 93).

4 Changes to prize structure

  • The Governor-General may from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation by the Bank, authorise such variations to the provisions of an approved unit trust that relate to entitlements to and the distribution of prizes as may be specified in the order.

5 Holders of bonus bonds and Post Office bonus bonds to become unit holders in approved unit trust

  • (1) On a date to be appointed by the Governor-General by Order in Council every person who, immediately before the date appointed, is the holder of a bonus bond or a Post Office bonus bond shall become the holder of a unit or units in an approved unit trust specified in the order corresponding in number to the number of units representing each dollar evidenced by the bond subject to all the rights and obligations attaching to that unit or those units by virtue of the unit trust as if that person had become the holder by subscription.

    (2) On the appointed day all rights and interests existing under and by virtue of bonus bonds or Post Office bonus bonds shall cease.

    (3) Every bonus bond or Post Office bonus bond, as the case may be, shall, on and after the appointed day, be deemed to be a certificate of interest for the purposes of section 13 of the Unit Trusts Act 1960.

    (4) Nothing in this section limits or prevents the issue of units in an approved unit trust to persons other than persons previously holding bonus bonds or Post Office bonus bonds.

6 Guarantee by Crown

  • (1) The Crown hereby guarantees, for a period of 2 years commencing on the appointed day, the performance of all obligations arising under an approved unit trust in respect of units deemed to have been issued to persons who were previously the holders of bonus bonds and Post Office bonus bonds.

    (2) Any money that is required to be paid by the Crown under subsection (1) shall be paid out of a Crown Bank Account without further appropriation than this section.

    (3) Any money required to be paid by the Crown under subsection (1) shall constitute a debt due to the Crown by the unit trust and shall be recoverable as such in any court of competent jurisdiction.

    Section 6(2): amended, on 25 January 2005, pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).

7 Use of term bonus bonds

  • (1) On and after the appointed day the Bank shall have the sole and exclusive right to use of the term “bonus bonds” in connection with the issue of units in an approved unit trust.

    (2) Except as provided in subsection (1), no person shall use the words “bonus bond” or “bonus bonds” or those words in combination with any other words in connection with the issue of securities by that person.

8 Application of section 11(2) of Unit Trusts Act 1960 from 1 October 1997

  • (1) The Bank is exempted from compliance with section 11(2) of the Unit Trusts Act 1960 (as substituted by section 4(1) of the Unit Trusts Amendment Act 1996) in respect of an approved unit trust.

    (2) The exemption in subsection (1) is subject to the condition that the Bank supplies to a holder of a unit or units in an approved unit trust, on request, a copy of—

    • (b) the auditor's report on those financial statements; and

    • (c) a summary of any amendments of the trust deed that have been made since the last balance date of the unit trust.

    Section 8: substituted, on 1 October 1997, by section 3 of the Finance Act (No 2) 1990 Amendment Act 1997 (1997 No 73).

9 Application of Gambling Act 2003

  • Nothing in the Gambling Act 2003 applies to, or in connection with,—

    • (a) the purchase or subscription of units in an approved unit trust; or

    • (b) any cash prize payable to the holders of such units; or

    • (c) the holding of ballots for the distribution of prizes to the holders of such units.

    Section 9 heading: amended, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

    Section 9: amended, on 1 July 2004, by section 374 of the Gambling Act 2003 (2003 No 51).

9A Application of Securities Act 1978

  • The Bank is exempted from compliance with section 54A of the Securities Act 1978 (as inserted by section 27 of the Securities Amendment Act 1996) in respect of any offer to the public within the meaning of the Securities Act 1978 of a unit in an approved unit trust.

    Section 9A: inserted, on 1 October 1997, by section 4 of the Finance Act (No 2) 1990 Amendment Act 1997 (1997 No 73).

10 Amendment to Income Tax Act 1976

  • [Repealed]

    Section 10: repealed, on 1 April 2005 (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).

11 Amendments to Post Office Bank Act 1987

  • (1) Amendment(s) incorporated in the Act(s).

    (2) This section shall come into force on the appointed day.

    Section 11(2): this section brought into force, on 1 October 1990, being the date appointed by the Finance Act (No 2) (Approved Unit Trust) Order 1990 (SR 1990/255).

12 Revocation

  • (1) The Post Office Bonus Bonds Interest Notice 1981 (SR 1981/315) is hereby revoked.

    (2) This section shall come into force on the appointed day.

    Section 12(2): this section brought into force, on 1 October 1990, being the date appointed by the Finance Act (No 2) (Approved Unit Trust) Order 1990 (SR 1990/255).

Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)

Notes
1 General

  • This is a reprint of the Finance Act (No 2) 1990. The reprint incorporates all the amendments to the Act as at 1 April 2005, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints

  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared

  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • •omission of unnecessary referential words (such as “of this section” and “of this Act”)

    • •typeface and type size (Times Roman, generally in 11.5 point)

    • •layout of provisions, including:

      • •indentation

      • •position of section headings (eg, the number and heading now appear above the section)

    • •format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • •format of dates (eg, a date formerly expressed as “the 1st day of January 1999” is now expressed as “1 January 1999”)

    • •position of the date of assent (it now appears on the front page of each Act)

    • •punctuation (eg, colons are not used after definitions)

    • •Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • •case and appearance of letters and words, including:

      • •format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • •small capital letters in section and subsection references are now capital letters

    • •schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • •running heads (the information that appears at the top of each page)

    • •format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)