EW 30 When calculation of base price adjustment not required
Cash basis person who ceases to be temporary New Zealand resident

(1)

A cash basis person who ceases to be a New Zealand resident before the first day of the fourth income year following the income year in which they first became a New Zealand resident does not calculate a base price adjustment for a financial arrangement to which they—

(a)

were a party before first becoming a New Zealand resident; and

(b)

are a party on the date on which they cease to be a New Zealand resident.

Other party who ceases to be New Zealand resident

(2)

A party to a financial arrangement who ceases to be a New Zealand resident does not calculate a base price adjustment to the extent to which the arrangement relates to a business the party carries on through a fixed establishment in New Zealand.

Creditor when legal defeasance occurs

(3)

A party who has a right to receive money under a financial arrangement the obligations of which are the subject of a legal defeasance does not calculate a base price adjustment on the date of the defeasance if the defeasance requires another person to meet the remaining obligations of the arrangement.

Debtor when legal defeasance occurs

(4)

A party to a financial arrangement does not calculate a base price adjustment if—

(a)

their obligations under the arrangement are the subject of an absolute legal defeasance; and

(b)

some or all of the consideration for the defeasance is deferred.

Creditor when assignment occurs

(5)

A party to a financial arrangement does not calculate a base price adjustment if—

(a)

their rights under the arrangement are the subject of an absolute assignment; and

(b)

some or all of the consideration for the assignment is deferred.

Defined in this Act: business, cash basis person, consideration, financial arrangement, fixed establishment, income year, legal defeasance, money, New Zealand, New Zealand resident

Compare: 2004 No 35 s EW 30