YA 1 Definitions

In this Act, unless the context requires otherwise,—

12 month ASAP

(a)

means an agreement for the sale and purchase of property or services (ASAP) for which an amount paid or payable for property or services is pre-paid (the prepayment) by reference to the rights date, and the prepayment is paid 12 months or more before the rights date, except if the prepayment is only—

(i)

a payment for progress made on either making or constructing property, or providing services:

(ii)

a deposit for property or services paid within the first 3 months of the ASAP that, when aggregated with all other deposits paid within those first 3 months, totals 10% or less of the amount paid or payable for property or services; and

(b)

means an ASAP for which an amount paid or payable for property or services is delayed (the deferment) and the deferment is paid 12 months or more after the rights date, except if the deferment is only—

(i)

an earnout amount based on business performance after the sale and purchase of property or services:

(ii)

an adjustment to the amount paid or payable for the property or service under a warranty:

(iii)

an adjustment to the amount paid or payable for the property or service on account of working capital

1973 version provisions [Repealed]

1988 version provisions [Repealed]

1990 version provisions [Repealed]

abating WFF tax credit is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

absentee

(a)

means a person other than a person who is resident in New Zealand during any part of the tax year:

(b)

is defined in section HD 18 (Agency in relation to absentees generally) for the purposes of subpart HD (Agents)

absolute value means the value irrespective of whether the value’s sign is positive or negative

ACC means the Accident Compensation Corporation continued by section 259 of the Accident Compensation Act 2001

ACC levy or premium is defined in section EF 3(5) (Accident compensation levies and premiums) for the purposes of that section

acceptable property is defined in section GB 45(3) (Arrangements involving money not at risk) for the purposes of that section

accident compensation earnings-related payment means a payment included in salary or wages of the following kinds and under the following Acts:

(a)

under the Accident Compensation Act 1982, a payment of earnings related compensation, as defined in section 2, and of compensation under section 80(4), that are not payments of account made under section 88 in circumstances in which, at the time the payments are made, the nature of the compensation has not been determined:

(b)

under the Accident Rehabilitation and Compensation Insurance Act 1992,—

(i)

a vocational rehabilitation allowance payable under section 25; and

(ii)

a payment of compensation for loss of earnings payable under any of sections 38, 39, and 43; and

(iii)

a payment of compensation for loss of potential earning capacity payable under section 45 or 46; and

(iv)

a payment of weekly compensation payable under any of sections 58, 59, and 60; and

(v)

a payment of continued compensation payable under section 138:

(c)

under the Accident Insurance Act 1998,—

(i)

a payment or weekly compensation made by an insurer, as defined in that Act:

(ii)

a payment of compensation for loss of earnings, or loss of potential earning capacity in relation to a work-related personal injury, as defined in that Act, made by an insurer under a policy of personal accident or sickness insurance to which section 188(1)(a) (as it read immediately before its repeal by section 7 of the Accident Insurance Amendment Act 2000) applies:

(d)

under the Accident Compensation Act 2001, a payment of weekly compensation made by the Corporation, as defined in that Act

accident compensation payment is defined in section CF 1(2) (Benefits, pensions, compensation, and government grants) for the purposes of that section

accident compensation payment for attendant care [Repealed]

accident insurance contract is defined in section CW 34(2) (Compensation payments) for the purposes of that section

accommodation,—

(a)

in section CX 28 (Accommodation), includes the use of a house or living premises, or the use of part of a house or living premises, whether permanent or temporary:

(b)

is defined in section CE 1(2) for the purposes of sections CE 1B to CE 1E, CW 16B to CW 16F, CW 17CB, CZ 23, CZ 29, and CZ 30 (which relate to accommodation provided in connection with employment)

account advantage

(a)

is defined in section GB 36(5) (Reconstruction of imputation arrangements to obtain tax advantage) for the purposes of that section:

(b)

is defined in section GB 43(5) (Reconstruction of Maori authority credit arrangements to obtain tax advantage) for the purposes of that section

accounting period, for a foreign company, means—

(a)

its accounting year; or

(b)

the relevant period of other than 12 months, if a person’s attributed CFC income or loss or FIF income or loss from the foreign company is allowed or required to be calculated on the basis of a period other than 12 months because of a change of residence of the foreign company

accounting profits method [Repealed]

accounting year,—

(a)

for any person, means a tax year or another 12 month period that ends with the date of the annual balance of the person’s accounts:

(b)

for a company, includes—

(i)

a period, shorter than 12 months, that is the period for which accounts are prepared, including under the international tax rules, because of the formation of the company or the termination of the company’s existence; and

(ii)

a period, shorter or longer than 12 months, that is the period for which accounts are prepared, including under the international tax rules, because of the company or a person under section EX 25 (Change of CFC’s balance date) or EX 69 (Change of FIF’s balance date) adopting a new accounting balance date

accrual accounting method is defined in section EG 2(4) (Adjustment for changes to accounting practice) for the purposes of that section

accrued entitlement, for a party to a financial arrangement at any time, means the party’s rights under the arrangement at the time

accrued obligation, for a party to a financial arrangement at any time, means the party’s obligations under the arrangement at the time

acquire, for depreciable property, includes—

(a)

make:

(b)

be granted, for a patent, design registration, or plant variety rights:

(bb)

apply an artistic work industrially, as provided by section 75 of the Copyright Act 1994, for industrial artistic copyright:

(c)

lodge, for a patent application, design registration application, or a plant variety rights application

acquisition is defined in section GC 14 (Definitions for sections GC 6 to GC 13) for the purposes of sections GC 6 to GC 13 (which relate to transfer pricing arrangements)

acquisition price is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

active service area is defined in section CW 24(2) (Deferred military pay for active service) for the purposes of that section

actuarial reserves is defined in section EZ 59 (Meaning of actuarial reserves)

actuarially determined, for an amount, means a requirement that is met when an actuary has calculated the amount using relevant actuarial standards and a proper and reasonable calculation methodology

actuary means a person who is—

(a)

a Fellow of the New Zealand Society of Actuaries; or

(b)

a Fellow of the Institute of Actuaries of Australia; or

(c)

a Fellow of the Institute of Actuaries (of London); or

(d)

the holder of an equivalent professional qualification approved by the Commissioner for the purposes of this definition

additional transport costs is defined in section CW 18(3) (Allowance for additional transport costs) for the purposes of that section

adjusted tax value

(a)

is defined in sections EE 55 to EE 60 (which relate to depreciation):

(b)

for software acquired before 1 April 1993, is defined in section EZ 20 (Adjusted tax value for software acquired before 1 April 1993):

(c)

is defined in paragraphs (a) and (b) and sections EE 21 to EE 24 (which relate to depreciation) for the purposes of section FO 16 (Amortising property)

adverse event deposit is defined in section EH 62 (Other definitions)

adverse event income equalisation account is defined in section EH 62 (Other definitions)

adverse event income equalisation scheme means the scheme referred to in section EH 1(2)(b) (Income equalisation schemes)

adverse event maximum deposit is defined in section EH 61 (Meaning of adverse event maximum deposit)

affected associate is defined in section GB 48(1) (Defined terms for sections GB 45 and GB 46) for the purposes of sections GB 45 and GB 46 (which relate to arrangements involving money not at risk)

after-income tax earnings [Repealed]

after-income tax loss [Repealed]

agent means a person declared by this Act to be an agent for the purposes of income tax

agreement for the sale and purchase of property is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

agreement for the sale and purchase of property or services

(a)

means a financial arrangement that is a conditional or unconditional agreement to—

(i)

acquire or dispose of property; or

(ii)

obtain or supply services; and

(b)

does not include a forward contract, a futures contract, an option, or a specified option

agricultural, horticultural, or viticultural company means a company that carries on a business that comprises or includes performing any work or rendering a service set out in schedule 4, part C, clause 1(b) (Standard rates of tax for schedular payments)

air transport from New Zealand is defined in section CW 56(3) (Non-resident aircraft operators) for the purposes of that section

aircraft engine means—

(a)

for an aircraft that is not a helicopter, an engine used for the propulsion of the aircraft:

(b)

for a helicopter,—

(i)

an engine used for the propulsion of, and generation of lift for, the helicopter:

(ii)

the main transmission system:

(iii)

the main rotor system:

(iv)

the swash plate assembly:

(v)

the anti-torque system:

(vi)

the hydraulic system:

(vii)

an assemblage consisting of 2 or more items referred to in subparagraphs (i) to (vi)

aircraft engine overhaul

(a)

for an aircraft that is not a helicopter, means a process that involves removing, if necessary, an aircraft engine from the aircraft, dismantling the aircraft engine and testing pieces, replacing or restoring pieces on the basis of test results or use of the aircraft engine since installation of the piece, restoring the aircraft engine to a condition in which it meets its performance specifications for the scheduled overhaul period before the overhaul, reassembling the aircraft engine, fitting the aircraft engine to the aircraft, and testing the aircraft engine:

(b)

for a helicopter, means a process that involves the application of the process described in paragraph (a) to—

(i)

an engine:

(ii)

the main transmission system:

(iii)

the main rotor system:

(iv)

the swash plate assembly:

(v)

the anti-torque system:

(vi)

the hydraulic system:

(vii)

an assemblage consisting of 2 or more items referred to in subparagraphs (i) to (vi)

airport is defined in section HR 7(2) (Meaning of airport operator’s activities) for the purposes of that section

airport asset is defined in section HR 6(7) (Airport operator’s assets) for the purposes of that section

airport authority is defined in section 2 of the Airport Authorities Act 1966

airport operator means the Crown, acting by and through the Minister of Transport, and any local authority that is an airport authority, in their respective capacities as joint venturers under a joint venture agreement

airport operator’s activities is defined in section HR 7 (Meaning of airport operator’s activities) for the purposes of sections HR 5 and HR 6 (which relate to airport operators)

amalgamated company means—

(a)

the 1 company that results from and continues after an amalgamation and that may be 1 of the amalgamating companies or a new company:

(b)

for an amalgamation of building societies, a building society described as society B in the definition of amalgamation, paragraph (b)

amalgamating company means—

(a)

a company that amalgamates with 1 or more other companies under an amalgamation:

(b)

for an amalgamation of building societies, a building society described as society A or as society B in the definition of amalgamation, paragraph (b)

amalgamation means—

(a)

an amalgamation to which both of the following apply:

(i)

it occurs under Part 13 or 15 of the Companies Act 1993, or it occurs or occurred under a foreign law that has the same or similar effect to Part 13 or 15 of the Companies Act 1993; and

(ii)

it causes 2 or more companies to amalgamate and continue as 1 company:

(b)

a transfer by a building society (society A) of all of its engagements to another building society (society B) under section 33 of the Building Societies Act 1965 if—

(i)

a notice of the transfer (the notice) is registered under section 34(3) of the Building Societies Act 1965; and

(ii)

society A’s funds, property, and assets are transferred or assigned to society B, except to the extent required to settle its affairs before being removed from the register of building societies; and

(iii)

society A does not carry on business after the notice is registered, except to the extent required to settle its affairs before being removed from the register of building societies; and

(iv)

society A’s liabilities are satisfied or assumed by society B; and

(v)

society A is or will be removed from the register of building societies as soon as practicable after the notice is registered

amalgamation rules means the provisions listed in section FO 2 (Amalgamation rules)

amortising property means property for which a person—

(a)

is allowed a deduction for an amount of depreciation loss; or

(b)

may make a deduction on account of amortisation of expenditure under section EZ 7 (Acquiring patent rights before 1 April 1993), EZ 8 (Premium paid on land leased before 1 April 1993), or any other amortisation provision

amount

(a)

includes an amount in money’s worth:

(b)

in sections CB 24 (Disposal of timber or right to take timber), CB 25 (Disposal of land with standing timber), and CB 29 (Disposal of minerals), includes the amount treated as—

(i)

the price paid or realised under section EB 24 (Apportionment on disposal of business assets that include trading stock):

(ii)

the consideration under sections FB 6 and FB 7 (which relate to the disposal of timber on a settlement of relationship property):

(iii)

the price realised under sections GC 1 and GC 2 (which relate to the disposal of trading stock for inadequate consideration):

(c)

is defined in section EH 35(2) (Meaning of main maximum deposit) for the purposes of that section:

(d)

is defined in section EH 78(3) (Meaning of thinning operations maximum deposit) for the purposes of that section:

(e)

is defined in section GC 14 (Definitions for sections GC 6 to GC 13) for the purposes of sections GC 6 to GC 13 (which relate to transfer pricing arrangements):

(f)

is defined in section RD 33(4) (Subsidised transport) for the purposes of that section:

(g)

is defined in section RD 37(2) (Contributions to superannuation schemes) for the purposes of that section:

(h)

is defined in section RD 41(4) (Services) for the purposes of that section

amount of all consideration is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

amount of tax, for a payment, includes the amount of tax that must be withheld and paid, or paid to the Commissioner under the PAYE rules, ESCT rules, RSCT rules, RLWT rules, RWT rules, or NRWT rules

ancillary tax means—

(a)

provisional tax:

(b)

further income tax:

(c)

imputation penalty tax:

(d)

penalty tax for a Maori authority payable under section 140DB of the Tax Administration Act 1994:

(e)
[Repealed]

(f)
[Repealed]

(g)
[Repealed]

(h)

qualifying company election tax:

(i)

PAYE:

(j)

FBT:

(k)

ESCT:

(kb)

RSCT:

(kc)

RLWT:

(l)

RWT:

(m)

NRWT

(n)
[Repealed]

annual branch equivalent tax account return means the return to be filed with the Commissioner by a company under sections 77 and 78 of the Tax Administration Act 1994

annual FDPA return [Repealed]

annual gross income is defined in section BC 2 (Annual gross income)

annual ICA return means the return to be filed with the Commissioner by a company under section 69 of the Tax Administration Act 1994

annual income tax balance date is defined in section EG 1(10) (Election to use balance date used in foreign country) for the purposes of that section

annual PCA return [Repealed]

annual rate is defined in section EE 61 (Meaning of annual rate)

annual rates means the rates of income tax fixed for a tax year by the annual taxing Act for that year

annual taxing Act means the provisions of any Act by which the rates of income tax are fixed for a tax year

annual total deduction is defined in section BC 3 (Annual total deduction)

apply, for a mode of communication, has the meaning set out in section 14C of the Tax Administration Act 1994

approved issuer means a person for whom an approval under section 32M of the Tax Administration Act 1994 is in force

arm’s length amount, for an arrangement that is a cross-border arrangement under section GC 6 (Purpose of rules and nature of arrangements) means an arm’s length amount of consideration under section GC 13 (Calculation of arm’s length amounts)

arrangement means an agreement, contract, plan, or understanding, whether enforceable or unenforceable, including all steps and transactions by which it is carried into effect

arrangement for assistance entered into by the government of New Zealand is defined in section CW 22(3) (Amounts derived by overseas experts and trainees in New Zealand by government arrangement) for the purposes of that section

arrangement property is defined in section GB 45(3) (Arrangements involving money not at risk) for the purposes of that section

ASC has the same meaning as available subscribed capital

ASC account means a memorandum account established by an ASC account company under section OF 1(2) (General rules for companies with ASC accounts)

ASC account company means a company that chooses under section OF 1(1) and OF 3 (which relate to ASCA companies) to become an ASCA company

ASC credit means a credit referred to in section OA 5(6) (Credits)

ASC debit means a debit referred to in section OA 6(6) (Debits)

ASCA means available subscribed capital account

ask, for a mode of communication, has the meaning set out in section 14B of the Tax Administration Act 1994

assessable income is defined in section BD 1(5) (Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income)

assessment is defined in section 3(1) of the Tax Administration Act 1994

assessment period is defined in section GB 45(3) (Arrangements involving money not at risk) for the purposes of that section

asset

(a)

is defined in section DG 3 (Meaning of asset for this subpart) for the purposes of subpart DG (Expenditure related to use of certain assets) and sections CC 1(2B) and CW 8B (which relate to the treatment of certain income):

(b)

is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure)

asset base, for a class of life insurance policy, means a segregated or identifiable group, or proportion of a group, of assets attributable to the class

asset value is defined in section DG 11(8) (Interest expenditure: close companies) for the purposes of subpart DG (Expenditure related to use of certain assets)

associated, associated person, person associated, and other expressions indicating the association of persons with each other are defined in sections YB 1 to YB 16 (which relate to associated persons)

associated internal software developer [Repealed]

associated mining operations is defined in section CU 7(2) (Some definitions)

associated non-attributing active CFC, for a CFC, means a person who is associated with the CFC under section YB 2 (Two companies) if the person and the CFC meet the following requirements:

(a)

the person is a non-attributing active CFC; and

(b)

the person and the CFC each have a taxed CFC connection with the same country or territory

association, in subpart HE (Mutual associations), and sections CB 33, CB 34, and DV 19, (which relate to mutual associations), means a body or association of persons, whether incorporated or not

association rebate is defined in section HE 3 (Association rebates) for the purposes of subpart HE (Mutual associations) and sections CB 34 and DV 19 (which relate to mutual associations)

attributable CFC amount is defined in section EX 20B (Attributable CFC amount)

attributable FIF income method means the method of calculating FIF income or FIF loss in section EX 50 (Attributable FIF income method)

attributed CFC income is defined in section CQ 2 (When attributed CFC income arises)

attributed CFC loss is defined in section DN 2 (When attributed CFC loss arises)

attributed CFC net loss, for a person and for an income year in which they have an attributed CFC loss, means the part of the loss that the person is denied as a deduction because of section DN 4 (Ring-fencing cap on deduction), but must instead deal with under Part I (Treatment of tax losses)

attributed PIE income means an amount of income attributed by a multi-rate PIE to an investor in the PIE under section HM 36 (Calculating amounts attributed to investors)

attributed PIE loss means an amount of loss attributed by a multi-rate PIE to an investor in the PIE under section HM 36 (Calculating amounts attributed to investors)

attributed repatriation [Repealed]

attributing interest means an attributing interest in a foreign investment fund as defined in sections EX 29 to EX 43 (which relate to attributing interests in FIFs)

attribution period, for a multi-rate PIE, means a period described in section HM 34 (Attribution periods)

Australian approved deposit fund means an approved deposit fund as defined in section 10 of the Superannuation Industry (Supervision) Act 1993 (Aust)

Australian complying superannuation scheme means an entity that is a complying superannuation fund for the purposes of Part 5, Division 2 of the Superannuation Industry (Supervision) Act 1993 (Aust) and that is regulated by the Australian Prudential Regulation Authority

Australian exempt public sector superannuation scheme means an exempt public sector superannuation scheme as defined in section 10 of the Superannuation Industry (Supervision) Act 1993 (Aust)

Australian financial year is defined in section CV 8(3) (Regulations: Australian wine producer rebate) for the purposes of that section

Australian ICA company is a company that must establish and maintain an imputation credit account because of an election under section OB 2 (Australian companies choosing to have imputation credit accounts)

Australian non-attributing shares is defined in section EM 8 (Some definitions) for the purposes of subpart EM (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)

Australian regulated superannuation fund means a regulated superannuation fund as defined in section 19 of the Superannuation Industry (Supervision) Act 1993 (Aust)

Australian retirement savings account means a retirement savings account as defined in section 8 of the Retirement Savings Accounts Act 1997 (Aust)

Australian wine producer rebate means a producer rebate (under A New Tax System (Wine Equalisation Tax) Act 1999 (Aust) and regulations made under that Act) that relates to wine exported from New Zealand on or after 1 July 2005

author is defined in section EI 3(6) (Assigning or granting copyright) for the purposes of that section

authorised savings institution [Repealed]

available capital distribution amount means the amount calculated for a share in a company under section CD 44 (Available capital distribution amount)

available subscribed capital means the amount calculated for a share in a company under section CD 43 (Available subscribed capital (ASC) amount)

available tax loss, for a person and their net income, means—

(a)

a loss balance carried forward that, under Part I (Treatment of tax losses), is required to be subtracted from the net income:

(b)

an amount of another company’s tax loss that, under Part I, the person, if it is a company, is allowed to subtract from the net income:

(c)

an attributed CFC net loss or FIF net loss carried forward that, under subpart IQ (Attributed controlled foreign company net losses and foreign investment fund net losses), is required to be subtracted from the net income:

(d)

the amount of another company’s attributed CFC net loss or FIF net loss that, under subpart IQ, is subtracted from the net income

balance date, for the purposes of sections FG 3 (Notional interest) and RC 10 (Calculating amount of instalment under standard and estimation methods) and subpart RC (Provisional tax), section RP 17B (Tax pooling accounts and their use), and schedule 3 (Payment of provisional tax and terminal tax) means the date of the annual balance of a person’s financial statements for their tax year

balloted loan right is defined in section DV 10(3) (Building societies) for the purposes of that section

banking company means a person carrying on in New Zealand the business of banking

base amount is defined in section RC 8(2) (GST ratio method) for the purposes of that section

base premium for the 1998–99 premium year is defined in section EZ 30(3) (Base premium for 1998–99 premium year under Accident Insurance Act 1998) for the purposes of that section

basic tax rate, for a person,—

(a)

means the basic rate of income tax for the person set out in schedule 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) and schedule 2 (Basic tax rates for PAYE income payments); and

(b)

in the case of a transitional year, resulting from a change in a person’s balance date, has the meaning given in section 39(5) of the Tax Administration Act 1994

benchmark distribution means the first taxable Maori authority distribution by a Maori authority in a tax year

benchmark dividend, means the first dividend paid by a company in a tax year that is not 1 of the following kinds:

(a)

a dividend to which the company is not allowed by section OB 63 (Australian dividends) to attach an imputation credit:

(b)

a distribution of a co-operative company for which the company has made an election under section OB 82 (When and how co-operative company makes election)

beneficial interest includes an interest that is contingent, discretionary or unvested

beneficiary is defined in section DX 1(5) (Testamentary annuities) for the purposes of that section

beneficiary income is defined in section HC 6 (Beneficiary income)

benefit [Repealed] 

benefit fund PIE means a defined benefit fund that—

(a)

meets the requirements of section HM 7 (Requirements); and

(b)

chooses to become a PIE under section HM 71 (Choosing to become PIE); and

(c)

has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and

(d)

does not attribute amounts to investors

best estimate assumptions means assumptions about the future that—

(a)

are actuarially determined; and

(b)

are made using professional judgement, training and experience; and

(c)

are not deliberately overstated or understated

BETA has the same meaning as branch equivalent tax account

BETA company [Repealed]

BETA person means a person who chooses under sections OE 1(2) and OE 17 (which relate to persons with branch equivalent tax accounts) to become a BETA person

binding ruling is defined in section 3 of the Tax Administration Act 1994

bloodstock

(a)

means a horse that is a member of the standardbred or thoroughbred breed of horses; and

(b)

includes a share or interest in such a horse

bonus issue means—

(a)

the issue or subdivision of shares in a company, or the giving of credit for or forgiveness of an amount unpaid on any shares in a company, if the company receives no consideration for the issue, subdivision, crediting, or forgiveness other than the shareholder choosing not to receive an amount as an alternative to the issue or subdivision:

(b)

the issue of shares under a profit distribution plan

bonus issue in lieu means a bonus issue made, on or after 1 October 1988, under an arrangement conferring on shareholders of a company an election whether to receive—

(a)

a bonus issue; or

(b)

money; or

(c)

money’s worth, other than money’s worth that is a bonus issue

boutique investor class, for a portfolio investment entity, means an investor class of the entity if—

(a)

the class does not have 20 or more members; and

(b)

the entity has 1 or more other investor classes that include 20 or more persons; and

(c)

no investor in the class described in paragraph (a), other than the manager or trustee of the entity, can control investment decisions relating to the class; and

(d)

the investor interests of investors in all investor classes described in paragraph (a) of the entity add up to less than 10% of the total value of interests in the entity

branch equivalent company [Repealed]

branch equivalent income, for a foreign company and for an accounting period, means the amount of income for the accounting period calculated under section EX 21 (Branch equivalent income or loss: calculation rules) as that provision read immediately before being amended by section 161 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009

branch equivalent loss, for a foreign company and for an accounting period, means the amount of loss for the accounting period calculated under section EX 21 (Branch equivalent income or loss: calculation rules) as that provision read immediately before being amended by section 161 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009

branch equivalent method means the method of calculating FIF income or FIF loss in section EX 50 (Branch equivalent method) as that provision read immediately before being amended by section 35 of the Taxation (International Investment and Remedial Matters) Act 2012

branch equivalent tax account means the account maintained by a BETA person under section OE 17(3) (Person choosing to become BETA person)

branch equivalent tax credit means a credit referred to in section OA 5(5) (Credits)

branch equivalent tax debit means a debit referred to in section OA 6(5) (Debits)

bribe is defined in section DB 45(4) (Bribes) for the purposes of that section

bright-line date is defined in section CB 6A (Disposal within 2 years: bright-line test for residential land) for the purposes of that section, section CB 16A (Main home exclusion for disposal within 2 years), and section 54C of the Tax Administration Act 1994

broodmare means a broodmare that is bloodstock

building, in subparts EE and EZ, does not include—

(a)

a grandparented structure:

(b)

commercial fit-out

building society is defined in section 2 of the Building Societies Act 1965

business

(a)

includes any profession, trade, or undertaking carried on for profit:

(b)

includes the activities of—

(i)

a statutory producer board:

(ii)

an airport operator:

(c)

is further defined in section DD 11 (Some definitions) for the purposes of subpart DD (Entertainment expenditure)

business contacts is defined in section DD 11 (Some definitions) for the purposes of subpart DD (Entertainment expenditure)

business premises is defined in section DD 11 (Some definitions) for the purposes of subpart DD (Entertainment expenditure)

business tool means an item that is used by an employee in the performance of their work duties and in the absence of section CX 21 (Business tools) would give rise to an unclassified benefit

business use, for a motor vehicle and for a person, means travel undertaken by the vehicle wholly in deriving the person’s income

calculation method, for the calculation of FIF income or FIF loss, means any of the attributable FIF income method, the comparative value method, the deemed rate of return method, the fair dividend rate method, and the cost method

calculation period, for a multi-rate PIE, means a period in which the entity calculates an amount under section HM 47 (Calculation of tax liability or tax credit of multi-rate PIEs) that—

(a)

consists of 1 or more attribution periods:

(b)

for a calculation under the quarterly calculation option, is a quarter:

(c)

for a calculation under the exit calculation or provisional tax calculation options, is an income year:

(d)

for a calculation under the exit calculation option when an exit period arises, is the exit period

cancellation, for a company and for a share, means the acquisition, redemption, or other cancellation of the whole share by the company, including on the liquidation of a company, and when a stapled debt security ceases to be a share

Canterbury earthquakes is defined in section CZ 29(5) (Accommodation expenditure: Canterbury earthquake relief) for the purposes of that section

capital contribution

(a)

in sections CG 8, DB 64, and EE 48 (which relate to capital contributions), means an amount that—

(i)

is paid by a person (the payer) to a person (the recipient) under an agreement between them; and

(ii)

is paid by the payer other than in their capacity of settlor, partner, or shareholder of the recipient; and

(iii)

is not income of the recipient, ignoring sections CC 1B (Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence) and CG 8; and

(iv)

is paid, under the express terms and conditions of the agreement, as a contribution for capital contribution property; and

(v)

if the agreement is a contract of insurance, indemnity, or compensation, is paid in relation to an interruption or impairment of business activities:

(b)

is defined in section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section

capital contribution property means, for a recipient of an amount,—

(a)

depreciable property owned or to be acquired by the recipient:

(b)

an improvement for which expenditure is or would be deductible for the recipient under section DO 4, DO 11, DO 12, or DO 13 (which relate to farming, horticultural, aquacultural, and forestry improvements):

(c)

a listed horticultural plant or land for which expenditure is or would be deductible for the recipient under section DO 5 or DO 6 (which relate to horticultural expenditure on land):

(d)

a listed horticultural plant or land to the extent to which some but not all expenditure for replacement plants is deductible under section DO 6

capital limitation is defined in section DA 2(1) (General limitations)

capital property is defined in section CD 44(18) (Available capital distribution amount) for the purposes of that section

car,—

(a)

in section EZ 16 (Amount of depreciation loss for plant or machinery additional to section EZ 15 amount), and in the definition of qualifying asset,—

(i)

means a motor vehicle designed exclusively or mainly to carry up to 9 people, including the driver; and

(ii)

includes such a motor vehicle that has rear doors and collapsible rear seats; and

(iii)

does not include a moped or a motorcycle:

(b)

in the FBT rules, and in the definition of work-related vehicle,—

(i)

means a motor vehicle designed exclusively or mainly to carry people:

(ii)

includes such a motor vehicle that has rear doors or collapsible rear seats:

(iii)

does not include a minibus, moped, motorcycle, or small passenger service vehicle

cash accounting method is defined in section EG 2(4) (Adjustment for changes to accounting practice) for the purposes of that section

cash basis person is defined in section EW 54 (Meaning of cash basis person)

casual agricultural employee means—

(a)

a casual agricultural worker:

(b)

a shearer:

(c)

a shearing shed hand

casual agricultural worker means a person engaged on a day to day basis for a period of no more than 3 months as a casual seasonal worker for the exclusive purpose of doing seasonal agricultural, horticultural, market gardening, nursery, orchard, or tobacco farming work, or other seasonal work that, in the opinion of the Commissioner, is work of a like nature to those classes of work

category A income is defined in section HR 3(1) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

category B income is defined in section HR 3(3) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

CFC has the same meaning as controlled foreign company

charitable or other public benefit gift is defined in section LD 3 (Meaning of charitable or other public benefit gift)

charitable organisation

(a)

means, for a quarter or an income year, an association, fund, institution, organisation, society, or trust to which section LD 3(2) (Meaning of charitable or other public benefit gift) or schedule 32 (Recipients of charitable or other public benefit gifts) applies

(i)

in the quarter; or

(ii)

in the income year, if fringe benefit tax is payable on an income year basis under section RD 60 (Close company option); and

(ab)

includes a person who has been removed from the register of charitable entities (the register) under the Charities Act 2005, but only for the period starting on the day the person is registered on the register and ending on the earlier of the last day of the following periods:

(i)

the quarter, or income year if section RD 60 (Close company option) applies, in which the person does not comply with their rules contained in the register:

(ii)

the quarter, or income year if section RD 60 applies, in which the day of final decision falls; and

(b)

does not include a local authority, a public authority, or a university

charitable purpose includes every charitable purpose, whether it relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community, and—

(a)

the purpose of a trust, society, or institution is charitable under this Act if the purpose would meet the public benefit requirement apart from the fact that the beneficiaries of the trust, or the members of the society or institution, are related by blood:

(b)

a marae has a charitable purpose if—

(i)

the physical structure of the marae is situated on land that is a Maori reservation referred to in Te Ture Whenua Maori Act 1993 (the Maori Land Act 1993); and

(ii)

the funds of the marae are not used for a purpose other than the administration and maintenance of the land and of the physical structure of the marae, or not used for a purpose that is a charitable purpose other than under this paragraph

charitable trust is defined in section HC 13 (Charitable trusts) for the purposes of the trust rules

chief executive is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

chief executive of the administering department

(a)

means the chief executive, appointed under the State Sector Act 1988, of the department responsible for administering the Social Security Act 1964; and

(b)

includes any person authorised to perform any of the functions of the chief executive

child in subparts MA to MF and MZ (which relate to tax credits for families), and in the definition of dependent child, means a person who is not in a marriage, civil union, or de facto relationship, and who—

(a)

is aged 15 years or less; or

(b)

is aged 16 or 17 years and is not financially independent; or

(c)

is aged 18 years and is a person for whom a tax credit is allowed under section MD 1 (Abating WFF tax credit) or both sections MD 1 and ME 1 (Minimum family tax credit)

child tax credit is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

civil union partner, in subparts MA to MF and MZ (which relate to tax credits for families) and in section LC 13 (Tax credits for independent earners) and in the definitions of entitlement period, full-time earner, and separated person, does not include a separated person

claim, in the life insurance rules, is defined in section EY 7 (Meaning of claim)

claim of right means a belief that an act is lawful, although the belief may be based on ignorance, or mistake, of—

(a)

fact; or

(b)

any matter of law other than the enactment against which the offence is alleged to have been committed

class, in subpart EC (Valuation of livestock), and in the definition of national average market value,—

(a)

means a category of livestock listed in schedule 17, column 2 (Types and classes of livestock); and

(b)

when used of a particular type of livestock, means any of the categories listed for that particular type

class closing animal balance is defined in section EC 8(4) (Restrictions arising from use of herd scheme) for the purposes of that section

class of policies means life insurance policies that have substantially the same terms and conditions, and that are priced by the life insurer using substantially the same assumptions

close company

(a)

means, at any time, a company to which 1 of the following applies:

(i)

at the time there are 5 or fewer natural persons the total of whose voting interests in the company is more than 50% (treating all natural persons associated at the time as 1 natural person); or

(ii)

at the time a market value circumstance exists for the company and there are 5 or fewer natural persons the total of whose market value interests in the company is more than 50% (treating all natural persons associated at the time as 1 natural person); and

(b)
[Repealed]

(c)

does not include a special corporate entity

close of trading spot exchange rate, for any foreign currency on any day, means the rate determined by applying the following paragraphs in order:

(a)

the rate of a spot contract for the purchase of New Zealand dollars using the foreign currency at any time on that day on a market approved, with the rate obtained from the sources of information approved, by the Commissioner in determination G6D made under section 64E of the Income Tax Act 1976 (or a determination issued in substitution for that determination); and

(b)

if no such rate can be obtained for that day, then the rate on the next day on which it can be obtained and that is no later than 5 working days after the first day; and

(c)

if no such rate of a spot contract can be obtained, the cross rate determined as at 3.00 pm New Zealand time on that day by applying the method outlined in paragraph 6(3)(c) of determination G6D made under section 64E of the Income Tax Act 1976 (or in the corresponding paragraph of a determination issued in substitution for that determination); and

(d)

if no such rate can be obtained, the rate determined by applying the method set out in paragraph 6(2) of determination G9A made under section 64E of the Income Tax Act 1976 (or in the corresponding paragraph of a determination issued in substitution for that determination)

close relative,—

(a)

is defined in section FC 1(2) (Disposals to which this subpart applies) for the purposes of subpart FC (Distribution, transmission, and gifts of property):

(b)

in section HA 6 (Corporate requirements), means, for a person—

(i)

a spouse, civil union partner, or de facto partner of the person:

(ii)

another person who is within the second degree of relationship to the person

closely-held company means, at any time, a company to which 1 of the following applies:

(a)

at the time there are 5 or fewer persons the total of whose direct voting interests in the company is more than 50%, treating all persons associated at the time as 1 person; or

(b)

at the time,—

(i)

a market value circumstance exists for the company; and

(ii)

there are 5 or fewer persons the total of whose direct market value interests in the company is more than 50%, treating all persons associated at the time as 1 person

closing stock, for a person and for an income year, means trading stock of the person at the end of the income year

combined imputation and CTR ratio [Repealed]

combined imputation and FDP ratio [Repealed]

combined tax and earner-related payment means, for a PAYE income payment, the total of—

(a)

the amount of tax for the PAYE income payment required to be withheld and paid under the PAYE rules; and

(b)

the amount withheld from the PAYE income payment under—

(i)

section 115 of the Accident Rehabilitation and Compensation Insurance Act 1992, on account of the earner’s premium payable by employees under the Act; or

(ii)

section 285 of the Accident Insurance Act 1998, on account of the earner’s premium payable by employees under the Act; or

(iii)

section 221 of the Accident Compensation Act 2001, on account of the earner’s levy payable by employees under the Act

commencement of this Act, in sections ZA 3 (Transitional provisions), ZA 4 (Saving of binding rulings), ZA 5 (Saving of accrual determinations), and ZA 6 (Comparative tables of old and new provisions), means commencement under section A 2(2) (Commencement)

commercial bill

(a)

includes—

(i)

a document creating or securing a legal or equitable security over goods, as defined in section 16 of the Personal Property Securities Act 1999, for the payment of money owing or to become owing, whether or not the document is registered under an Act; and

(ii)

a bill of exchange, as defined in section 3 of the Bills of Exchange Act 1908; and

(iii)

a promissory note, as defined in section 84 of the Bills of Exchange Act 1908, other than a banknote; and

(iv)

a Treasury Bill; and

(v)

a document or agreement that has substantially the same purpose or effect as an item referred to in any of subparagraphs (i) to (iv); and

(vi)

a share or interest in an item referred to in any of subparagraphs (i) to (v); and

(b)

does not include—

(i)

a debenture or bond for the payment of a security issued by a body corporate; or

(ii)

a security, whether legal or equitable, over an estate or interest in land

commercial building means a building that is not, in part or in whole, a dwelling, unless use as a dwelling is a secondary and minor use

commercial fit-out means an item to the extent to which it is—

(a)

plant attached to a commercial building, but not used inside a dwelling within the commercial building:

(b)

attached to, and non-structural in relation to, a building, if the item is not used for weatherproofing the building and—

(i)

is not used in relation to, and is not part of, a dwelling within the building; or

(ii)

is used in relation to, but is not part of, a dwelling within the building, and the building is a commercial building

commercial production

(a)

for petroleum mining, means the production in commercial quantities on a continuing basis of petroleum in a state suitable for delivery to a buyer, consumer, processor, refinery, or user:

(b)

for mineral mining, means the extraction of a listed industrial mineral from a permit area and the production of the mineral in commercial quantities on a continuing basis to a stage at which it is in a saleable form and suitable location for delivery to a buyer, consumer, processor, or user

Commissioner means the Commissioner of Inland Revenue as defined in section 3 of the Tax Administration Act 1994

common interest is defined in section YC 13(4) (Corporate spin-outs) for the purposes of that section

common market value interest

(a)

means the market value interest measured under section IC 3(4) (Common ownership: group of companies) for the purposes of that section and sections CD 5 and IC 4:

(b)

is defined in section YC 13(6) (Corporate spin-outs) for the purposes of that section

common span is defined in section IP 2(1) (Group companies’ common span) for the purposes of subpart IP (Meeting requirements for part-years)

common voting interest

(a)

means the voting interest measured under section IC 3(3) (Common ownership: group of companies) for the purposes of that section and sections CD 5 and IC 4:

(b)

is defined in section YC 13(5) (Corporate spin-outs) for the purposes of that section

commonality period is defined in section IC 6(1) (Common ownership for period) for the purposes of Part I (Treatment of tax losses)

Commonwealth

(a)

means the British Commonwealth of Nations; and

(b)

includes every territory for whose international relations the Government of any country of the Commonwealth is responsible

community housing entity is defined in section CW 42B (Community housing trusts and companies)

community trust is defined in section 4 of the Community Trusts Act 1999

company

(a)

means a body corporate or other entity that has a legal existence separate from that of its members, whether it is incorporated or created in New Zealand or elsewhere:

(ab)

does not include a partnership:

(abb)

does not include a look-through company, except in the PAYE rules, the FBT rules, the NRWT rules, the RWT rules, the ESCT rules, the RSCT rules, and for the purposes of subpart FO (Amalgamation of companies):

(ac)

includes a listed limited partnership:

(ad)

includes a foreign corporate limited partnership:

(b)

includes a unit trust:

(c)

includes a group investment fund that is not a designated group investment fund, but only to the extent to which the fund results from investments made into it that are—

(i)

not from a designated source, as defined in section HR 3(5) (Definitions for section HR 2: group investment funds); and

(ii)

not made before 23 June 1983, including an amount treated as invested at that date under the definition of pre-1983 investment in section HR 3(8):

(d)

includes an airport operator:

(e)

includes a statutory producer board:

(f)

includes a society registered under the Incorporated Societies Act 1908:

(g)

includes a society registered under the Industrial and Provident Societies Act 1908:

(h)

includes a friendly society:

(i)

includes a building society:

(j)

is further defined in section EX 30(7) (Direct income interests in FIFs) for the purposes of that section

company dividend statement means a statement required by section 67 of the Tax Administration Act 1994 to be completed and retained by a company for a dividend

comparative value method means the method of calculating FIF income or FIF loss in section EX 51 (Comparative value method)

compensation [Repealed]

completed, for a film, means the completion of the film to—

(a)

the stage of production at which the film has been completely edited, shot by shot, to its final length; or

(b)

a production stage equivalent to that described in paragraph (a)

complying fund calculation period [Repealed]

complying fund rules means, for a superannuation fund and an employee’s superannuation accumulation, rules that—

(a)

meet all the requirements set out in schedule 28 (Requirements for complying fund rules); and

(b)

do not detract from those requirements

complying superannuation fund has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

complying trust is defined in section HC 10 (Complying trusts)

compulsory employer contribution has the same meaning as in the KiwiSaver Act 2006

conduct is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

conduit company [Repealed]

consideration

(aa)

includes the amount owing under a stapled debt security when the security ceases to be a share, in section CD 43 (Available subscribed capital (ASC) amount):

(a)

is defined in section EE 45 (Consideration for purposes of section EE 44) for the purposes of section EE 44 (Application of EE 48 to EE 51):

(b)

means an amount determined under the financial arrangements rules in—

(i)

the financial arrangements rules:

(ii)

section EX 21(11) (Attributable CFC amount and net attributable CFC income or loss: calculation rules):

(iii)

sections FO 12 to FO 15 (which relate to the treatment of financial arrangements on amalgamation):

(iv)

sections FO 18 to FO 20 (which relate to companies that are parties to financial arrangements):

(v)

section HC 31(4) (When existing trusts come into tax base)

consolidated BETA group [Repealed]

consolidated FDP group [Repealed]

consolidated group means, at any time, a consolidated group formed under section FM 35 (Forming consolidated group) as it is constituted at that time

consolidated imputation group means—

(a)

an imputation group:

(b)

a resident imputation subgroup:

(c)

a consolidated group, no member of which is a member of an imputation group

consolidation rules means the provisions listed in section FM 2(2) (Consolidation rules)

contaminant means a contaminant as defined in section 2(1) of the Resource Management Act 1991

continental shelf is defined in the Continental Shelf Act 1964

continuity period

(a)

is defined in section IA 5(6) (Restrictions on companies’ loss balances carried forward) for the purposes of that section:

(b)

is defined in section LP 4(3) (Continuity rules for carrying credits forward) for the purposes of that section

continuity provisions means—

(a)

section GB 3 (Arrangements for carrying forward loss balances: companies); and

(b)

section GB 4 (Arrangements for grouping tax losses: companies); and

(c)

sections IA 3 and IA 4 (which relate to the use of tax losses); and

(d)

section IA 5 (Restrictions on companies’ loss balances carried forward); and

(e)

section IC 1 (Company A making tax loss available to company B); and

(f)

section LP 3(4) (Use of remaining credits); and

(fb)

section MX 7 (Reinstatement of R&D tax losses and R&D repayment tax); and

(g)

section OB 41 (ICA debit for loss of shareholder continuity); and

(h)
[Repealed]

(i)
[Repealed]

(j)

section OK 15 (MACA debit for loss of shareholder continuity)

contract activity or service, for a non-resident contractor, means—

(a)

performing any work in New Zealand:

(b)

rendering a service of any kind in New Zealand:

(c)

providing the use of, or right to use, in New Zealand, any personal property or services of a person other than the non-resident contractor

contract of employment is defined in section DC 3B(3) (Payments to working owners) for the purposes of that section and the definition of working owner

contract of service is defined in section DC 4(5) (Payments to working partners) for the purposes of that section

contract payment, for a non-resident contractor, means any payment other than—

(a)

a royalty; or

(b)

a payment made to the non-resident contractor by or on behalf of a person who is not associated with the contractor to reimburse costs incurred by the contractor; or

(c)

a payment referred to in schedule 4, part E (Standard rates of tax for schedular payments)

contractor R&D consideration is defined in section MX 3(5) (Wage intensity criteria)

contribution, in the FBT rules, means a contribution made—

(a)

directly; or

(b)

indirectly by reimbursement through another person

control [Repealed]

control interest, for a foreign company, is defined in sections EX 2 (Four categories for calculating control interests) and EX 7 (Indirect control interests)

control interest category means 1 of the categories of control interest listed in section EX 2(2) (Four categories for calculating control interests)

controlled foreign company is defined in section EX 1 (Meaning of controlled foreign company)

controlled petroleum mining company means a company that is a petroleum miner if—

(a)

90% or more in value of its outstanding shares are held, directly or indirectly, by or for 5 or fewer persons; and

(b)

the market value of a petroleum permit, including an asset of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset) attributable to the permit, held by the company is at least 75% of the value of its assets minus its liabilities, as shown in the company’s audited financial statement or accounts prepared under generally accepted accounting practice

controlled petroleum mining entity means—

(a)

a controlled petroleum mining company; or

(b)

a controlled petroleum mining holding company; or

(c)

a controlled petroleum mining trust; or

(d)

a controlled petroleum mining holding trust

controlled petroleum mining holding company means a company if—

(a)

90% or more in value of its outstanding shares are held, directly or indirectly, by or for 5 or fewer persons; and

(b)

the total market value of the following shares and trust interests held by the company is at least 75% of the value of its assets minus its liabilities, as set out in the company’s audited financial statement or accounts prepared according to generally accepted accounting practice:

(i)

shares in petroleum mining companies:

(ii)

shares in petroleum mining holding companies:

(iii)

trust interests in petroleum miners that are trusts:

(iv)

trust interests in petroleum mining holding trusts

controlled petroleum mining holding trust means a trust that is a petroleum miner if—

(a)

90% or more in value of the trust is owned, directly or indirectly, by or for 5 or fewer persons; and

(b)

the total market value of the following shares and trust interests held by the trust is at least 75% of the value of its assets minus its liabilities, as set out in the trust’s accounts prepared according to generally accepted accounting practice:

(i)

trust interests in petroleum miners that are trusts:

(ii)

trust interests in other petroleum mining holding trusts:

(iii)

shares in petroleum miners that are companies:

(iv)

shares in petroleum mining holding companies

controlled petroleum mining trust means a trust that is a petroleum miner if—

(a)

90% or more in value of the trust is owned, directly or indirectly, by or for 5 or fewer persons; and

(b)

the market value of a petroleum permit, including an asset of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset) attributable to the permit, held by the trust is at least 75% of the value of its assets minus its liabilities, as shown in the trust’s accounts prepared under generally accepted accounting practice

controlling shareholder is defined in section HD 15(9) (Asset stripping of companies) for the purposes of that section

convert, for a New Zealand emissions unit, means convert as defined in section 4(1) of the Climate Change Response Act 2002

convertible credit [Repealed]

convertible note means a document or a combination of documents that—

(a)

is issued or given by a company; and

(b)

creates or relates to money lent to the company, whether or not secured; and

(c)

provides, whether exclusively or not,—

(i)

for the holder to have a right to subscribe for shares or stock in the capital of the company or in the capital of another company; or

(ii)

for the amount or any part of the amount, with or without interest and whether at par or otherwise, to be converted into or repaid by the issue of shares in the company, whether the conversion or repayment by the issue of shares is mandatory or is at the option of the company or of the holder

conveyancer means,—

(a)

for a vendor or a purchaser, the lawyer, incorporated law firm, conveyancing practitioner, or incorporated conveyancing firm that provides conveyancing services, as that term is used in the Lawyers and Conveyancers Act 2006, to the vendor or purchaser using a New Zealand-based trust account; but

(b)

for a purchaser who does not have a conveyancer described in paragraph (a), the purchaser themselves

co-operative company does not include a statutory producer board

copyright in a sound recording means the copyright in the version of the recording of which copies have been sold or offered for sale to the public

core acquisition price is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

core technology means technology which is used as a basis for research or development

corpus is defined in section HC 4 (Corpus of trust)

corresponding income year, for a tax year, means an income year that ends in the period starting on 1 October in the tax year and ending on 30 September immediately after the tax year

cost,—

(a)

in subpart EB (Valuation of trading stock (including dealer’s livestock)), for trading stock, means costs incurred in the ordinary course of business to bring trading stock to its present location and condition, including acquisition costs and costs of production, calculated under sections EB 6 to EB 8 (which relate to costs for standard valuations), EB 15 to EB 18 (which relate to costs for low-turnover traders), and EB 22 (Valuing closing stock consistently for low-turnover traders):

(b)

is defined in section RD 40(3) (Goods) for the purposes of that section:

(c)

in sections RD 42 and RD 43 (which relate to goods provided with staff discount), for a registered person who may claim input tax for the cost of the goods, means the GST-inclusive cost of the goods to the person

cost method means a method of calculating FIF income or FIF loss under section EX 56 (Cost method)

cost of timber, in sections DP 11, EJ 1, EW 2, EZ 44, FB 6, and FB 7 (which relate to the disposal of timber),—

(a)

means the amount of expenditure incurred by a person in relation to timber—

(i)

before harvest, for a disposal of harvested timber:

(ii)

before the disposal of the timber or the relevant right, for a disposal of standing timber or a disposal of a right to take timber, or another right referred to in section DP 11(4) (Cost of timber); and

(b)

includes, for section DP 11,—

(i)

expenditure on planning, planting, and growing the timber:

(ii)

expenditure incurred in relation to the rights listed in section DP 11(4); and

(c)

excludes—

(i)

expenditure for which a deduction is allowed under a provision of this Act other than section DP 11:

(ii)

expenditure to which section DB 46 (Avoiding, remedying, or mitigating effects of discharge of contaminant) applies:

(iii)

an amount allowed as a deduction under section DQ 4 (Environmental restoration accounts scheme)

cost price,—

(a)

in subpart EC (Valuation of livestock), does not include any amount of input tax in relation to the supply of livestock or trading stock to a person; and

(b)

in section FZ 2 (Effect of specified lease on lessor and lessee), and in the definition of specified lease, and for a personal property lease asset, means the amount of expenditure of a capital nature that is incurred, in acquiring and installing the asset,—

(i)

by the lessor; or

(ii)

if the lessor under a lease acquires the asset as lessee under any other lease, by the person who is the lessor in the other lease; and

(c)

as a qualification on paragraph (b), if, in carrying on a business in the income year in which the asset is acquired, the lessor acquires, manufactures, or assembles as trading stock, and distributes or sells, an asset of the same kind as the asset, the cost price for the asset is an amount equal to the normal price for which, at the start of the lease period, the lessor would have sold an asset of the same kind as the asset to the lessee; and

(d)

as another qualification on paragraph (b), if the lessor has used the asset in deriving income before the lease is entered into, the cost price of the asset is equal to the capital expenditure incurred by the lessor in acquiring the asset, reduced by the total of the amounts of depreciation loss for which the lessor has been allowed deductions for the asset; and

(e)

as another qualification on paragraph (b), if, for an asset and a lease entered into on or after 29 October 1983, an amount cannot be determined under any of paragraphs (b) to (d), the cost price for the asset is an amount equal to the market price of the asset at the start of the term of the lease or, if there is no such market price or there are 2 or more, is an amount equal to the amount that, in the circumstances of the case, is reasonable, having regard to the nature of the asset and to the tenor of this definition

council-controlled organisation

(a)

means—

(i)

an organisation that is a council-controlled trading organisation as defined in section 6 of the Local Government Act 2002, and is not a company:

(ii)

a company that is a council-controlled organisation, under paragraph (a)(i) of the definition of council-controlled organisation in section 6(1) of the Local Government Act 2002:

(iii)

an organisation that is a council-controlled organisation, under paragraph (b) of the definition of council-controlled organisation in section 6(1) of the Local Government Act 2002, and that has, in an organisation of a kind described in subparagraph (i) or (ii), control of at least 50% of the votes at any meeting of the members or the controlling body of the organisation, or the right to appoint at least 50% of the directors, managers, or trustees of the organisation (however the positions are described):

(iv)

an organisation that would be a council-controlled organisation of a kind described in paragraph (a) or (b) or (c) if it did not have an exemption granted under section 6(4)(i) of the Local Government Act 2002:

(v)

the New Zealand Local Government Association Incorporated:

(vi)

a company or organisation, as defined in section 6(2) of the Local Government Act 2002, that is subject to the control, directly or indirectly, of the New Zealand Local Government Association Incorporated:

(vii)

New Zealand Local Government Insurance Corporation and any subsidiaries it has:

(viii)

Watercare Services Limited and any subsidiaries it has: but

(b)

does not include Auckland Transport (as established by section 38 of the Local Government (Auckland Council) Act 2009) or Auckland Regional Holdings (as established by section 18 of the Local Government (Auckland) Amendment Act 2004 or the New Zealand Local Government Funding Agency Limited

counted associate is defined in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section

cover review period is defined in section EY 30 (Transitional adjustments: life risk)

credit account continuity provisions means section OB 41 (ICA debit for loss of shareholder continuity)

credit card repayment insurance is defined in section EY 30 (Transitional adjustments: life risk)

credit of tax has the same meaning as tax credit

credit transfer notice means a credit transfer notice issued under section 30C of the Tax Administration Act 1994

creditable membership, for a person,—

(a)

means membership of a KiwiSaver scheme or a complying superannuation fund; and

(b)

includes the following periods:

(i)

the period beginning on the first day of a month in which a KiwiSaver contribution for the person is first deducted or a contribution for the person is first received by the Commissioner and ending on the day on which securities are first allotted by the scheme for the person:

(ib)

the period beginning on the day which the Commissioner nominates when requested by the person, in circumstances where, due to matters outside the control of the person, the first deduction of KiwiSaver contributions was delayed, and ending on the day on which securities are first allotted by the KiwiSaver scheme for the person:

(ii)

the days in the month in which securities are first allotted by the scheme or fund for the person:

(iii)

for the period beginning on 1 July 2007 and ending on the day on which securities are first allotted by the scheme for the person, and for a person who contributes to the scheme before 1 November 2007, the days in the month on which the scheme receives a valid application for membership from the person and the days remaining in the period

creditor workout, in relation to a financial arrangement, means—

(a)

a compromise, as that term is defined in section 227 of the Companies Act 1993, in writing that, for the parties to the financial arrangement, is binding under Part 14, 15, or 15A of that Act, or is otherwise legally binding, to the extent to which the compromise does not cancel all of a debt:

(b)

a suspension in part of the repayment of any deposit, the payment of any debt, or the discharge of any obligation, under section 44 of the Corporations (Investigation and Management) Act 1989

Crown Research Institute is defined in section 2 of the Crown Research Institutes Act 1992

CTR [Repealed]

CTR account [Repealed]

CTR additional dividend [Repealed]

CTR company [Repealed]

CTR credit [Repealed]

CTR debit [Repealed]

CTR group member [Repealed]

CTR holding company [Repealed]

CTR ratio [Repealed]

CTRA [Repealed]

current accounting year [Repealed]

current value is defined in section HR 3(4) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

date of acquisition is defined in section CB 6A (Disposal within 2 years: bright-line test for residential land) for the purposes of that section, section CB 16A (Main home exclusion for disposal within 2 years), and section 54C of the Tax Administration Act 1994

date of transfer, in subpart FB (Transfers of relationship property), and in the definitions of year of transfer, for property transferred under a relationship agreement, means the date on which the property was transferred

date the deposit ends

(a)

is defined in section EH 36 (Other definitions) for the purposes of the main income equalisation scheme:

(b)

is defined in section EH 62 (Other definitions) for the purposes of the adverse event income equalisation scheme:

(c)

is defined in section EH 79 (Other definitions) for the purposes of the thinning operations income equalisation scheme

day is defined in section RD 30(2) (Private use of motor vehicle: 24-hour period) for the purposes of section RD 29 (Private use of motor vehicle: formulas)

day of final decision means the later of—

(a)

the day the relevant person is removed from the register of charitable entities under the Charities Act 2005:

(b)

the day on which all reasonably contemplated administrative appeals and court proceedings, including appeal rights, are finalised or exhausted in relation to the person’s charitable status

de facto partner means a person who is party to a de facto relationship

debenture includes debenture stock

debenture holder includes the owner of debenture stock

debt security is defined in section FA 2B(4) (Stapled debt securities)

debt value is defined in section DG 11(9) (Interest expenditure: close companies) for the purposes of subpart DG (Expenditure related to use of certain assets)

deductible foreign equity distribution means a distribution by a foreign company to a company, in relation to a share in the foreign company,—

(a)

for which a deduction is allowed in the calculation of the income tax imposed by a country or territory other than New Zealand on the income of the foreign company or on the income of a company in the same group as the foreign company:

(b)

sourced directly or indirectly out of an amount paid to the foreign company in relation to a financial arrangement or share by another company if—

(i)

the foreign company is not liable for income tax imposed by a country or territory other than New Zealand on the amount paid to the foreign company; and

(ii)

the other company is allowed a deduction, in the calculation of the income tax imposed by a country or territory other than New Zealand on the income of the other company, for the amount paid to the foreign company

deductible output tax, in sections DB 2 (Goods and services tax) and EE 54 (Cost: GST) the sum of the following amounts, as applicable:

(a)

an amount of output tax charged in relation to a supply of goods and services that the Goods and Services Tax Act 1985 treats a registered person as making under—

(i)

section 5(23) of that Act:

(ii)

section 5B of that Act when they have no deduction for any input tax on the acquisition of the goods or services:

(iii)

the old apportionment rules referred to in section 21H of that Act:

(iv)

section 21I(1) to (3) of that Act; and

(b)

an amount that is the result of an apportionment of input tax made in relation to the supply under section 20(3C) to (3I) of that Act to the extent to which the person does not have a deduction from output tax for the full amount of input tax:

(c)

an amount of output tax accounted for in relation to the supply under section 20(3J) of that Act:

(d)

an amount of output tax that is the result of adjustment made in relation to the supply under sections 21 to 21H of that Act

deduction, for a person, means a deduction of the person under section BD 2 (Deductions)

deemed rate of return method means the method of calculating FIF income or FIF loss in section EX 55 (Deemed rate of return method)

deferred military pay is defined in section CW 24(2) (Deferred military pay for active service) for the purposes of that section

defined benefit fund means a superannuation scheme or workplace savings scheme (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013) that operates on the principle of unallocated funding

dependent child, for a child and a person,—

(a)

means a child—

(i)

whose care is primarily the responsibility of the person; and

(ii)

who is maintained as a member of that person’s family; and

(iii)

who is financially dependent on that person:

(b)

does not include a child in relation to whom—

(i)

a payment is made under section 363 of the Oranga Tamariki Act 1989:

(ii)

a benefit is being paid under section 28 or 29 of the Social Security Act 1964:

(c)

despite paragraph (b)(i), includes a child or a young person, as defined in section 2(1) of the Oranga Tamariki Act 1989,—

(i)

of whom the person is a parent within the meaning of that Act; and

(ii)

to whom section 361 of that Act applies; and

(iii)

who, under section 362 of that Act, is placed in the charge of the person

deposit

(a)

is defined in section EH 36 (Other definitions) for the purposes of the main income equalisation scheme:

(b)

is defined in section EH 62 (Other definitions) for the purposes of the adverse event income equalisation scheme:

(c)

is defined in section EH 79 (Other definitions) for the purposes of the thinning operations income equalisation scheme

depreciable intangible property is defined in section EE 62 (Meaning of depreciable intangible property)

depreciable property is defined in sections EE 6 (What is depreciable property?) and EE 7 (What is not depreciable property?)

depreciation loss

(a)

means a loss that a person has in the circumstances set out in section EE 1(2) (What this subpart does); and

(b)

includes a deduction for depreciation that a person was allowed under an earlier Act

depreciation method is defined in section EE 12 (Depreciation methods)

depreciation percentage means a percentage set by the Commissioner under section EC 33 (Determining depreciation percentages)

depreciation recovery income

(a)

means income that a person has in the circumstances set out in section EE 1(3) (What this subpart does); and

(b)

includes income that a person had under the corresponding provision of an earlier Act

derivative instrument means a derivative as defined in NZIAS 39

derived from New Zealand [Repealed]

descendant is defined in section EC 4B(7) (Compulsory use of herd scheme method for associated persons) for the purposes of that section

descended associate is defined in section EC 4B(7) (Compulsory use of herd scheme method for associated persons) for the purposes of that section

design registration means a registration of a design under the Designs Act 1953, and includes a similar registration and protection of a design under the laws of a country or territory other than New Zealand

design registration application means an application for a design registration

designated group investment fund is defined in section HR 3(6) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

designated source investments is defined in section HR 3(7) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

designated sources is defined in section HR 3(5) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

development is defined in section DB 35 (Some definitions) for the purposes of that section, section DB 34, and subpart MX (which relate to research and development)

development investments [Repealed]

diminished value, for an income year, means the value established by subtracting from the amount of expenditure described in sections DO 4 and DO 5, DO 12, or DP 3 (which relate to certain businesses on land) the following amounts:

(a)

the total income derived under section CB 28(8) (Environmental restoration accounts) in relation to the expenditure; and

(b)

the total amount allowed as a deduction for the expenditure to any person—

(i)

in an earlier income year under this Act or an earlier Act:

(ii)

in the income year under this Act, except an amount allowed in the income year under section DB 46, DO 5, DO 6, DO 12, or DP 3

diminishing value equivalent is defined in section EC 34(4) (General rule) for the purposes of that section

diminishing value method, for depreciation, is defined in section EE 67 (Other definitions)

diminishing value rate is defined in section EE 67 (Other definitions)

direct control interest is defined in section EX 5 (Direct control interests)

direct income interest

(a)

is defined in section EX 9 (Direct income interests) except for the FIF rules:

(b)

is defined in section EX 30 (Direct income interests in FIFs) for the FIF rules

direct market value circumstance means a market value circumstance for a company other than a market value circumstance described in paragraph (g) of the definition of market value circumstance

direct market value interest means a market value interest of a person in a company other than a market value interest of the person in the company to the extent to which it is treated as arising only under section YC 4(5) (Look-through rule for corporate shareholders)

direct voting interest means a voting interest of a person in a company other than a voting interest of the person in the company to the extent to which it is treated as arising only under section YC 4(2) (Look-through rule for corporate shareholders)

director

(a)

means—

(i)

a person occupying the position of director, whatever title is used:

(ii)

a person in accordance with whose directions or instructions the persons occupying the position of directors of a company are accustomed to act:

(iii)

a person treated as being a director by any other provision of this Act:

(iv)

in the case of an entity that does not have directors and that is treated as, or assumed to be, a company by a provision of this Act, any trustee, manager, or other person who acts in relation to the entity in the same way as a director would act, or in a similar way to that in which a director would act, were the entity a company incorporated in New Zealand under the Companies Act 1993:

(b)

is defined in section HD 15(9) (Asset stripping of companies) for the purposes of that section

disabled workshop payment is defined in section CW 33(2) (Allowances and benefits) for the purposes of that section

discontinuance profit means the amount calculated by a life insurer following the steps in section EY 36 (Discontinuance profit for income year)

discontinuance profit formula means the formula in section EY 37 (Discontinuance profit formula (existing policies)) or the formula in section EY 38 (Discontinuance profit formula (new policies))

discount payment date is defined in section EZ 30(3) (Base premium for 1998–99 premium year under Accident Insurance Act 1998) for the purposes of that section

dispose,—

(a)

in sections CB 6A to CB 16, CB 18, CB 19, CB 21, and CB 22 (which relate to the disposal of land), for land, includes—

(i)

compulsory acquisition under any Act by the Crown, a local authority, or a public authority:

(ii)

if there is a mortgage secured on the land, a disposal by or for the mortgagee as a result of the mortgagor’s defaulting under the mortgage:

(b)

in sections CB 24 (Disposal of timber or right to take timber), CB 25 (Disposal of land with standing timber), DP 10 (Cost of acquiring timber or right to take timber: other cases), DP 11 (Cost of timber), and GC 2 (Disposals of timber rights or standing timber), includes—

(i)

to grant a licence or easement:

(ii)

to grant a right to take timber:

(iii)

to create a right to take timber:

(iv)

to create a forestry right, as defined in the Forestry Rights Registration Act 1983, other than a right in favour of the proprietor:

(c)

in sections CB 29 (Disposal of minerals) and DB 30 (Cost of certain minerals), includes—

(i)

to grant a licence or easement:

(ii)

to grant a right to take minerals from land:

(d)

is defined in section CE 2 (Value and timing of benefits under share purchase agreements) for the purposes of that section:

(e)

in sections CT 1, DT 2 to DT 4, DT 8 to DT 11, DT 13, DT 19, DZ 6, EJ 15, EJ 16, EJ 17, EZ 3, and GB 20 (which relate to mining),—

(i)

means to sell or transfer an asset, voluntarily or involuntarily; and

(ii)

includes to lose or destroy an asset:

(f)

for depreciable property, includes destroy, withdraw, or let lapse, but does not include the following:

(i)

for a patent application, conclude the patent application because a patent is granted in relation to the patent application:

(ib)

for a design registration application, conclude the design registration application because a design registration is granted in relation to the design registration application:

(ii)

for a geothermal well, have the well stop being available for use because section EE 6(4) (What is depreciable property) no longer applies:

(g)

in subpart FC (Distribution, transmission, and gifts of property) means a disposal of property in the manner provided for in that subpart:

(h)

for a partner,—

(i)

includes surrendering or extinguishing some or all of their partner’s interests:

(ii)

does not include when their partner’s interests may be treated as disposed of by operation of law because another partner disposes of that partner’s interests, unless section HG 4 (Disposal upon final dissolution) applies

disposition of property in the trust rules, and in the definition of superannuation contribution, but not for a unit trust,—

(a)

means an assignment, conveyance, delivery, payment, settlement, transfer, or other alienation of property, whether at law or in equity; and

(b)

without limiting the generality of paragraph (a), includes—

(i)

the issue of shares in a company:

(ii)

the creation of a trust:

(iii)

the grant or creation of a charge, lease, licence, mortgage, power, servitude, or other estate, interest, or right, in or over property:

(iv)

the abandonment, discharge, forfeiture, release, or surrender of a contract, debt, or thing in action, or of an estate, interest, power, or right in or over property; and for this purpose a debt, or any other estate, interest, or right, is treated as having been released or surrendered when it becomes irrecoverable or unenforceable by action or for any reason ceases to exist:

(v)

the exercise of a general power of appointment in favour of a person other than the holder of the power; and

(c)

includes a disposition as defined in paragraph (a) or (b) by will or intestacy; and

(d)

does not include a disclaimer of an interest under a disposition made during life or by will; and

(e)

does not include a disclaimer of an interest under an intestacy

distant workplace is defined in section CW 16B(5) (Accommodation expenditure: out-of-town secondments and projects)

distinctive work clothing is defined in section CX 30(2) (Distinctive work clothing) for the purposes of sections CX 30 and CW 17CC (Payments for distinctive work clothing) and section CW 17CC (Payment for distinctive work clothing)

distribution is defined in section HC 14 (Distributions from trusts) for the purposes of the trust rules

district health board [Repealed]

dividend

(a)

is defined in sections CD 3 to CD 20 (which relate to income from equity) for the purposes of this Act, except for the definition of investment society dividend:

(b)

in the RWT rules, does not include a dividend of the kind listed in section RE 2(5) (Resident passive income) and modified by section RE 2(6), as applicable:

(c)

in the NRWT rules,—

(i)
[Repealed]

(ii)

includes an amount paid to a shareholder that is a company and a person associated with the company paying the amount, if the amount is excluded from dividend treatment generally only as a result of sections CD 26(2)(b) (Capital distributions on liquidation or emigration) and CD 44; and

(iii)

does not include the amount of any imputation credit attached to the dividend:

(d)

in subpart LP (Tax credits for supplementary dividends),—

(i)

includes an amount paid to a shareholder that is a company and a person associated with the company paying the amount, if the amount is excluded from dividend treatment generally only as a result of sections CD 26(2)(b) and CD 44; and

(ii)

does not include any non-cash dividend; and

(iii)

does not include any dividend derived by a life insurer from a company treated as resident in New Zealand because of the Commissioner granting an application under section EY 49 (Non-resident life insurer becoming resident):

(e)

in section GB 38 (When sections GB 35 to GB 37 apply to consolidated groups), subpart OE (Branch equivalent tax accounts (BETA)), the imputation rules, and the definitions of benchmark dividend, company dividend statement, imputation credit, imputation ratio, pay, and shareholder dividend statement, does not include any amount treated as a dividend under section CB 34(5), GB 23, or GB 25 (which relate to mutual associations, family-owned businesses, and close companies):

(f)

in section GB 38 (When sections GB 35 to GB 37 apply to consolidated groups), subpart OE (Branch equivalent tax accounts (BETA)), the imputation rules, and the definitions of benchmark dividend, company dividend statement, imputation credit, imputation ratio, pay, and shareholder dividend statement, does not include an amount treated as a dividend under section GB 1(3) (Arrangements involving dividend stripping)

dividend treated as interest means a dividend that is paid in relation to a share issued by a company that is at the time of payment—

(a)

a company not resident in New Zealand; or

(b)

a company whose constitution prohibits all of its income or property from being distributed to a proprietor, member, or shareholder of the company; or

(c)

a company all the income of which is exempt income other than under section CW 9 (Dividend derived by company from overseas) or CW 10 (Dividend within New Zealand wholly-owned group); or

(d)

a company that, in New Zealand, is engaged solely in the business of life insurance referred to in section EY 8(2)(c) (Meaning of life insurance)

donee organisation means an entity described in section LD 3(2) (Meaning of charitable or other public benefit gift) or listed in schedule 32 (Recipients of charitable or other public benefit gifts)

double tax agreement is defined in section BH 1 (Double tax agreements)

dwelling

(a)

means any place used predominantly as a place of residence or abode, including any appurtenances belonging to or enjoyed with the place; but

(b)

does not include any of the following, in whole or part:

(i)

a hospital:

(ii)

a hotel, motel, inn, hostel, or boardinghouse:

(iii)

a serviced apartment for which paid services in addition to the supply of accommodation are provided to a resident, and in relation to which a resident does not have quiet enjoyment, as that term is used in section 38 of the Residential Tenancies Act 1986:

(iv)

a convalescent home, nursing home, or hospice:

(v)

a rest home or retirement village, except to the extent that, in relation to a relevant place, it is, or can reasonably be foreseen to be, occupied as a person’s principal place of residence for independent living:

(vi)

a camping ground

(c)

despite paragraph (b)(iii) and (v), for the purposes of section CB 16A (Main home exclusion for disposal within 2 years) and the definition of residential land

(i)

includes a serviced apartment described in paragraph (b)(iii):

(ii)

does not include, in whole or part, a rest home or retirement village

early balance date has the meaning given in section YE 1(6) (References to balance dates and years)

early life regime application day means, for a life insurer that chooses to apply the new life insurance rules, as provided in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009, for an income year that includes 1 July 2010, the first day of that income year

early-payment discount is defined in section RC 40 (Some definitions) for the purposes of sections RC 37 to RC 39 (which relate to discounts of income tax)

economic rate is defined in section EE 67 (Other definitions)

education grant is defined in section CF 1(2) (Benefits, pensions, compensation, and government grants) for the purposes of that section

effective interest is defined in section HA 43 (Meaning of effective interest)

effective look-through interest is defined in section HB 1(5) (Look-through companies are transparent)

election commencement year, for an interest holder and an elective attributing CFC, or elective attributing FIF, of the interest holder for an accounting period, means the first year for which the election under section EX 73 (Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF) for the accounting period was effective

election day worker means a person to whom all the following apply:

(a)

the person is engaged as a Deputy Returning Officer, poll clerk, interpreter, or usher, or for any other purpose, for—

(i)

an election or poll held under the provisions of the Electoral Act 1993 or the Local Electoral Act 2001; or

(ii)

an election or poll to which any of the provisions of the Electoral Act 1993 or the Local Electoral Act 2001 applies; or

(iii)

an election or poll held simultaneously with and in the same premises as an election or poll referred to in subparagraph (i) or (ii); and

(b)

the person is paid by the authority controlling the election or poll; and

(c)

the person’s payment is exclusively for work done or services rendered immediately before, on, or immediately after the day on which the election or poll is held

election expiry date is defined in section HC 30(5) (Treatment of foreign trusts when settlor becomes resident) for the purposes of that section

elective attributing CFC, for an interest holder and an accounting period, means a CFC for which the interest holder has made an election under section EX 73 (Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF) that is effective for the accounting period

elective attributing FIF for an interest holder and an accounting period, means a FIF for which the interest holder uses the attributable FIF income method and has made an election under section EX 73 (Election that CFC not non-attributing active CFC or FIF not non-attributing active FIF) that is effective for the accounting period

electronic format means the format and the electronic means by which a return or particulars that are filed electronically are provided

eligible hedge is defined in section EM 8 (Some definitions) for the purposes of subpart EM (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)

emergency call is defined in section CX 34 (Meaning of emergency call)

emergency event [Repealed]

emigrating company is defined in section FL 1(1) (What this subpart does)

emissions unit means a unit as defined in section 4(1) of the Climate Change Response Act 2002

emissions unit shortfall year, for a person means an income year that—

(a)

is an emissions unit shortfall year for the person under section ED 1B(9)(a) (Valuation of emissions units issued for zero price); and

(b)

has not ceased to be an emissions unit shortfall year for the person under section ED 1B(10)(c)

employee

(a)

means a person who receives or is entitled to receive a PAYE income payment:

(ab)

for the purposes of the FBT rules, includes a shareholder-employee who has chosen under section RD 3(3) to treat amounts paid to them in the income year in their capacity as employee as income other than from a PAYE income payment:

(ac)

despite paragraph (a), in sections CE 1, CE 1B, and CW 16B to CW 16F (which relate to accommodation provided in connection with employment), includes an employee provided with accommodation or an accommodation payment as described in section CE 1(3)(a) (Amounts derived in connection with employment):

(b)

in sections CW 17, CW 17B, CW 17C, CW 17CB, CW 17CC, and CW 18 (which relate to expenditure, reimbursement, and allowances of employees) includes a person to whom section RD 3(2) to (4) (PAYE income payments) applies:

(c)

in the FBT rules, and in the definition of shareholder-employee (paragraph (b)), does not include a person if the only PAYE income payment received or receivable is—

(ii)

a schedular payment referred to in schedule 4, parts A, I, and W (Standard rates of tax for schedular payments) for which the person is liable for income tax under section BB 1 (Imposition of income tax):

(d)

is defined in section DC 15 (Some definitions) for the purposes of sections DC 12 to DC 14 (which relate to share purchase schemes):

(db)

does not include an owner of a look-through company or a person who has a look-through interest for a look-through company, unless the owner or person is a working owner:

(e)

for an employer, means an employee of the employer

employee share loan is defined in section CX 35 (Meaning of employee share loan)

employee’s superannuation accumulation means the total superannuation contributions, together with any return on them, to which the complying fund rules apply, and are—

(a)

employer’s superannuation cash contributions:

(b)

the amount of a tax credit under section MK 3 (Payment of tax credits) that is treated as a Crown contribution for an employee under section MK 5 (Crown contributions for members):

(c)

withheld from the employee’s salary or wages

employer

(a)

means a person who pays or is liable to pay a PAYE income payment:

(b)

includes,—

(i)

for an unincorporated body of persons other than a partnership, the manager or other principal officer:

(ii)

for a partnership, each partner:

(iib)

a look-through company:

(iii)

for the estate of a deceased person, a trust, a company in liquidation, an assigned estate, or for any other property vested or controlled in a fiduciary capacity, each person in whom the property has become vested or to whom control of the property has passed:

(iv)

the Crown:

(c)

in the FBT rules, does not include a person if the only PAYE income payment that they pay or are liable to pay is—

(ii)

a schedular payment referred to in schedule 4, parts A, I, and W (Standard rates of tax for schedular payments):

(d)

is defined in section RD 45(6) (Unclassified benefits) for the purposes of that section:

(db)

is defined in section CE 1(3)(a) (Amounts derived in connection with employment) for the purposes of that section and sections CE 1B, and CW 16B to CW 16F (which relate to accommodation provided in connection with employment):

(e)

for an employee, means the employer of the employee

employer contribution has the same meaning as in the KiwiSaver Act 2006

employer monthly schedule means a form that an employer must provide to the Commissioner in manual format or in electronic format, or that a PAYE intermediary must provide to the Commissioner in electronic format, showing—

(a)

the name and tax file number of the employer; and

(b)

the name of every person who was an employee of the employer at any time during the period to which the employer monthly schedule relates; and

(c)

if supplied to the employer, the tax file number of each employee to whom paragraph (b) refers; and

(d)

the tax code of each employee to whom a PAYE income payment that is not an extra pay is made; and

(e)

for each employee in the month to which the schedule relates,—

(i)

the amount of gross earnings:

(ii)

the total amount of tax withheld:

(iii)

the total amount of tax credits under section LD 4 (Tax credits for payroll donations):

(iv)

the amount of earnings not liable to the earner premium; and

(f)

if applicable, particulars of child support deductions made, and salary or wage deductions made under the Student Loan Scheme Act 2011; and

(g)

for each employee in the month to which the schedule relates, if applicable, the amount of total KiwiSaver contribution deductions made under Part 3, subpart 1 of the KiwiSaver Act 2006; and

(h)

for each employee in the month to which the schedule relates, if applicable, the amount of employer’s superannuation cash contributions, less any ESCT payable under the ESCT rules; and

(i)

in the month in which an employee starts, the date on which they started to be an employee of the employer; and

(j)

in the month in which an employee ceases, the date on which they ceased to be an employee of the employer; and

(k)

the identity of each employee who received an extra pay at a rate less than the rate set out in schedule 2, part B, table 1, row 3 (Basic tax rates for PAYE income payments); and

(l)

other particulars required by the Commissioner for a class of employer

employer-sourced superannuation savings means—

(a)

employer’s superannuation cash contributions under section RA 5(1)(c) (Tax obligations for employment-related taxes) made on or after 1 April 2000 other than—

(i)

those that are treated as salary and wages under section RD 68 (Choosing to have amount treated as salary or wages); or

(ii)

those on which ESCT has been paid at the rate set out in schedule 1, part A, clause 10(a) of the Income Tax Act 2004 before that clause was replaced by a new clause 10(a) on 1 April 2007; and

(b)

any return on those employer’s superannuation contributions; and

(c)

reserves, that is, employer’s superannuation cash contributions under section RA 5(1)(c) made on or after 1 April 2000 that do not vest in a member of the superannuation fund and any return on those employer’s superannuation cash contributions, as follows:

(i)

for a superannuation fund with 10 or more unassociated members, reserves that have been allocated to a member of the superannuation fund, other than those allocated to an account of the member’s contributions for smoothing investment returns; or

(ii)

for all other superannuation funds, reserves

employer sponsored group policy [Repealed]

employer’s superannuation cash contribution is defined in section RD 65(1) (Employer’s superannuation cash contributions)

employer’s superannuation contribution means a superannuation contribution made by an employer for the benefit of 1 or more of their employees

employing company is defined in section DC 15 (Some definitions) for the purposes of sections DC 12 to DC 14 (which relate to share purchase schemes)

employment has a meaning corresponding to the meaning of employee, and—

(a)

includes the activities performed by the Governor-General, a member of Parliament, or a judicial officer that give rise to an entitlement to receive a PAYE income payment for the activities:

(b)

is defined in section ME 2(1) (Meaning of employment for this subpart) for the purposes of subpart ME (Minimum family tax credit) and the definition of full-time earner

employment income means an amount that is income under section CE 1 (Amounts derived in connection with employment), and includes salary or wages or other income to which section RD 3(2) to (4) (PAYE income payments) applies

employment limitation is defined in section DA 2(4) (General limitations)

employment-related loan means a loan that is a fringe benefit

end date is defined in section RA 15(3) (Payment dates for interim and other tax payments) for the purposes of that section

engaged in full-time work [Repealed]

entering owner

(a)

means a person who acquires an owner’s interests for a look-through company:

(b)

includes a person who already has owner’s interests for a look-through company when they acquire another owner’s interests

entering partner

(a)

means a person who acquires a partner’s interests in a partnership:

(b)

includes a person who is already a partner in the partnership when they acquire another partner’s interests

entitlement period is defined in section MC 11(1) (Relationship periods and entitlement periods) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

environmental restoration account is defined in section EK 23(3) (Other definitions) for the purposes of subpart EK (Environmental restoration accounts)

equity instrument is defined in section EW 15I(3) (Mandatory use of yield to maturity method for some arrangements) for the purposes of that section

ESCT

(a)

means employer’s superannuation contribution tax; and

(b)

relates to an employer’s superannuation cash contribution; and

(c)

refers to an amount payable as income tax under the ESCT rules

ESCT rate threshold amount, for an employer’s superannuation cash contribution, means—

(a)

for an employee employed by an employer for the whole of a tax year immediately before the tax year in which the employer’s superannuation contribution is paid, the total amount of—

(i)

salary or wages derived by the employee in the previous tax year; and

(ii)

the gross amount of employer’s superannuation contributions before ESCT is withheld that the employer paid on behalf of the employee in the previous tax year; or

(b)

if paragraph (a) does not apply, the total amount of—

(i)

salary or wages that the employer estimates will be derived by the employee in the tax year in which the contribution is paid; and

(ii)

the gross amount of employer’s superannuation contributions before ESCT is withheld that the employer estimates that they will pay on behalf of the employee in the tax year in which the contribution is paid

ESCT rules means the provisions listed in section RD 64 (ESCT rules and their application)

established activity is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

estate in relation to land, interest in relation to land, estate or interest in land, estate in land, interest in land, and similar terms—

(a)

mean an estate or interest in the land, whether legal or equitable, and whether vested or contingent, in possession, reversion, or remainder; and

(b)

include a right, whether direct or through a trustee or otherwise, to—

(i)

the possession of the land (for example: a licence to occupy, as that term is defined in section 121A(1) of the Land Transfer Act 1952):

(ii)

the receipt of the rents or profits from the land:

(iii)

the proceeds of the disposal of the land; and

(c)

do not include a mortgage

estimated residual market value,—

(a)

for an item of depreciable property, is defined in section EE 67 (Other definitions):

(b)

for high-priced livestock, means its market value at the end of its estimated useful life, estimated reasonably as at the date of acquisition and based upon an assumption of normal and reasonable maintenance over its estimated useful life

estimated useful life,—

(a)

for an item of depreciable property, is defined in section EE 63 (Meaning of estimated useful life):

(b)

for high-priced livestock, means the period over which the livestock might reasonably be expected to be useful in deriving income or carrying on a business in New Zealand, taking into account—

(i)

the passage of time, likely wear and tear, exhaustion, and obsolescence; and

(ii)

an assumption of normal and reasonable maintenance:

(c)

for a listed horticultural plant, means the period of time over which the listed horticultural plant might reasonably be expected to be useful to a person in deriving income or in carrying on a business in New Zealand, with the expectation based on an assumption of normal and reasonable maintenance:

(d)

for a type of pasture, means the period of time over which the pasture might reasonably be expected to be useful to a person in deriving income or carrying on a farming or agricultural business on land in New Zealand

ETS unit [Repealed]

excepted financial arrangement

(a)

is defined in section EW 5 (What is an excepted financial arrangement?) for the purposes of this Act except the old financial arrangements rules; and

(b)

is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

excess credit amount [Repealed]

excess debt entity is defined in section FE 4 (Some definitions) for the purposes of subpart FE (Interest apportionment on thin capitalisation)

excess debt outbound company is defined in section FE 4 (Some definitions) for the purposes of subpart FE (Interest apportionment)

excess expenditure

(a)

is defined in section CZ 8(2) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section:

(b)

is defined in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section

excess tax payment, for a company at a time, and for the purposes of Part O (Memorandum accounts), means the amount at the time by which a payment made by or on behalf of the company to the Commissioner for income tax or provisional tax is more than the liability at the time of the company to pay income tax and provisional tax

exchange variation is defined in section CZ 3(5) (Exchange variations on 8 August 1975) for the purposes of that section

excluded ancillary tax means—

(a)

imputation penalty tax:

(b)
[Repealed]

(c)

qualifying company election tax

(d)
[Repealed]

(e)
[Repealed]

excluded depreciable property is defined in section EE 64 (Meaning of excluded depreciable property)

excluded fixed rate security means a fixed rate share issued by a company or a debenture issued by a company, if it is a stapled debt security and not a profit-related debenture, when the holder of the share or debenture does not have, because of it, any right to vote or participate in any shareholder decision-making, except to the extent of any such right that—

(a)

arises only in circumstances in which the position of the holder of the share or debenture may be altered to the holder’s detriment; and

(b)

is granted to the holder of the share or debenture for the purpose of assisting the holder to prevent the alteration; and

(c)

at the time of the issue of the share or debenture, is not expected to arise

excluded income is defined in section BD 1(3) (Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income)

excluded option means, for a company, an option to acquire or dispose of a share in the company if—

(a)

the directors of the company did not know and could not reasonably be expected to know that the option had been granted; or

(b)

neither the grantor of the option nor any person associated with the grantor of the option at the time the option is granted holds a share in the company over which the option is granted at the time the option is granted, whether directly or indirectly, but this paragraph does not apply in a case in which the grantor of the option is the company; or

(c)

the option is granted on arm’s length terms, without the grant having a purpose or effect of defeating the intent and application of any provision of this Act whose application is dependent on the measurement of voting and market value interests, and the holder of the option does not have, because of it, any right to vote or participate in any shareholder decision-making, except to the extent of any such right that—

(i)

arises only in circumstances in which the position of the holder of the option in relation to it may be altered to the holder’s detriment; and

(ii)

is granted to the holder of the option for the purpose of assisting the holder to prevent the alteration; and

(iii)

at the time of the issue of the option, is not expected to arise; or

(d)

the price payable to acquire the share on the exercise of the option is equal to or not materially different from the market value of the share at the date of exercise, and the holder of the option does not have, because of it, any right to vote or participate in any shareholder decision-making, except to the extent of any such right that—

(i)

arises only in circumstances in which the position of the holder of the option in relation to it may be altered to the holder’s detriment; and

(ii)

is granted to the holder of the option for the purpose of assisting the holder to prevent the alteration; and

(iii)

at the time of the issue of the option, is not expected to arise; or

(e)

the share is an excluded fixed rate security, subject to section YC 20 (Credit account continuity provisions: excluded fixed rate securities) in the case of the credit amount continuity provisions; or

(f)

the option—

(i)

relates to a pre-1991 budget security; and

(ii)

was itself granted before 8.00 pm New Zealand Standard Time on 30 July 1991 (the specified time), or was granted under a binding contract entered into before the specified time no term of which is altered at any time after the specified time; and

(iii)

is not an option any term of which is altered at any time after the specified time (whether under a provision for roll-over or extension or under an option held at the specified time by the option holder or the grantor of the option, or both, or any other person, or otherwise), except when the term is altered under a binding contract entered into before the specified time no term of which is altered at any time after the specified time

excluded preference share is defined in section YC 18B (Corporate reorganisations not affecting economic ownership) for the purposes of that section

exempt income is defined in section BD 1(2) (Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income)

exempt income limitation is defined in section DA 2(3) (General limitations)

exempt interest means interest that is—

(a)

payable for a debt entered into under generally accepted commercial practice for the purchase of goods or services, if the purchase is made in the ordinary course of the purchaser’s taxable activity; or

(b)

payable under a hire purchase agreement, the definition of which applies, for this purpose, as if it did not contain paragraph (g); or

(c)

exempt income under section CW 8 (Money lent to government of New Zealand) or CW 64 (Exemption under other Acts); or

(d)

payable under a specified lease or a finance lease; or

(e)

payable for bonus bonds or Post Office bonus bonds (as each of those terms is defined in section 2 of the Post Office Bank Act 1987); or

(f)

payable on an overpaid levy under section 173 of the Accident Compensation Act 2001; or

(g)

payable by the Commissioner under section 84 of the KiwiSaver Act 2006

exemption certificate means a certificate provided by the Commissioner under section 24M of the Tax Administration Act 1994

existing business is defined in section EY 28 (Shareholder base other profit: profit participation policies that are existing business) for the purposes of that section and section EY 29 (Shareholder base other profit: profit participation policies that are new business)

existing farmer is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

existing privilege is defined in section 2(1) of the Crown Minerals Act 1991, and includes mining privilege and mining licence under the Mining Act 1971 and prospecting licence or mining licence under the Petroleum Act 1937

exit level, for a multi-rate PIE, means the relationship of the entity’s tax liability to the value of the investor’s interest described in section HM 62 (Exit levels for investors)

exit period, for an investor in a multi-rate PIE, means a period set out in section HM 63 (Exit periods)

exiting partner, for a partnership, means a person who disposes of interests in the partnership held by the person as a partner

expected life risk proportion is defined in section EY 25 (Premium smoothing reserving amount: non-participation policies not annuities) for the purposes of that section

expenditure

(a)

is defined in section DD 2(7) (Limitation rule) for the purposes of that section:

(b)

is defined in section DW 1(2) (Airport operators) for the purposes of that section:

(c)

is defined in section RF 12D(3) (Determining amount of non-resident financial arrangement income) for the purposes of that section and sections RF 2B, RF 2C, RF 12E to RF 12J, and RZ 13 (which relate to the calculation of non-resident financial arrangement income)

expenditure on account of an employee is defined in section CE 5 (Meaning of expenditure on account of an employee)

exploration and development activities is defined in section CW 57(2) (Non-resident company involved in exploration and development activities) for the purposes of that section

exploration permit is defined in section 2 of the Crown Minerals Act 1991

exploratory material means anything acquired with exploratory well expenditure or prospecting expenditure

exploratory well means a well in a permit area, drilled for the purpose of—

(a)

locating petroleum; or

(b)

confirming the existence, non-existence, quantity, or composition of petroleum; or

(c)

ascertaining whether petroleum is recoverable in commercial quantities

exploratory well expenditure

(a)

means expenditure incurred by a petroleum miner in planning, drilling, testing, completing, and abandoning an exploratory well; and

(b)

does not include residual expenditure

extended return date is defined in section IC 9(3) (Date for payment and notice to Commissioner) for the purposes of Part I (Treatment of tax losses)

extra pay is defined in section RD 7 (Extra pay)

fair dividend rate annual method means the method of calculating FIF income or loss under section EX 52 (Fair dividend rate annual method)

fair dividend rate hedge portion is defined in section EM 8 (Some definitions) for the purposes of subpart EM (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)

fair dividend rate method means the method of calculating FIF income or loss under—

(a)

section EX 52 (Fair dividend rate annual method); or

(b)

section EX 53 (Fair dividend rate periodic method)

fair dividend rate periodic method means the method of calculating FIF income or loss under section EX 53 (Fair dividend rate periodic method)

fair value method means a method under section EW 15D (IFRS financial reporting method) of calculating income or expenditure for an income year that takes into account movements in fair value as determined under IFRSs

family assistance credit [Repealed]

family credit abatement is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

family member means a family member as defined in section 5 of the Members of Parliament (Remuneration and Services) Act 2013

family plus [Repealed]

family scheme is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

family scheme income is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

family support [Repealed]

family tax credit is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

farmer is defined in section EH 3(1)(a) (Persons to whom main income equalisation scheme applies) for the purposes of the main income equalisation scheme

farm-in expenditure means expenditure that a farm-in party under a farm-out arrangement agrees that they will incur

farm-out arrangement

(a)

means an arrangement between a petroleum miner or a mineral miner (the farm-out party) and a person (the farm-in party) under which the farm-in party agrees that they will incur expenditure in doing work or paying for work done in or for the permit area of the farm-out party’s petroleum permit, exploration permit, prospecting permit, or mining permit, as applicable, (the permit), after the arrangement is made and, in return, they—

(i)

acquire an interest in the farm-out party’s permit:

(ii)

receive a right or option to acquire an interest in the farm-out party’s permit:

(iii)

become entitled in another way to acquire an interest in the farm-out party’s permit:

(iv)

become entitled to a direct or indirect interest in petroleum or a listed industrial mineral, as applicable, from the permit area of the farm-out party’s permit:

(v)

become entitled to a direct or indirect interest in the profits, however measured, from petroleum or a listed industrial mineral, as applicable, from the permit area of the farm-out party’s permit:

(vi)

become entitled to a direct or indirect right to reimbursement from petroleum or a listed industrial mineral, as applicable, from the permit area of the farm-out party’s permit:

(vii)

become entitled to a direct or indirect right to reimbursement from the profits, however, measured from petroleum or a listed industrial mineral, as applicable, from the permit area of the farm-out party’s permit:

(viii)

become entitled to a rental, royalty, or other consideration of whatever nature calculated by reference to petroleum or a listed industrial mineral, as applicable, from the permit area of the farm-out party’s permit:

(ix)

become entitled to a rental, royalty, or other consideration of whatever nature calculated by reference to the profits, however, measured, from petroleum or a listed industrial mineral, as applicable, from the permit area of the farm-out party’s permit:

(b)

is defined in section CZ 8(2) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section:

(c)

is defined in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section

farmland means land that—

(a)

is being worked in the farming or agricultural business of the land’s owner:

(b)

because of its area and nature, is capable of being worked as a farming or agricultural business

FBT has the same meaning as fringe benefit tax

FBT rules means the provisions listed in section RD 25 (FBT rules and their application), and fringe benefit tax rules has the same meaning

FDP [Repealed]

FDP account [Repealed]

FDP credit [Repealed]

FDP debit [Repealed]

FDP penalty tax [Repealed]

FDP ratio [Repealed]

FDP reference period [Repealed]

FDP rules [Repealed]

FDPA [Repealed]

FDPA company [Repealed]

feature film means a film that—

(a)

is produced mainly for exhibition in a cinema; and

(b)

is exhibited in 35mm gauge; and

(c)

has a continuous running time of no less than 75 minutes

fee is defined in section RD 41(4) (Services) for the purposes of that section

FIF means a foreign investment fund as defined in section EX 28 (Meaning of FIF)

FIF income is defined in section CQ 5 (When FIF income arises)

FIF loss is defined in section DN 6 (When FIF loss arises)

FIF net loss, for a person and for an income year in which the person has a FIF loss, means the part of the FIF loss for which the person is denied a deduction because of section DN 8 (Ring-fencing cap on deduction: attributable FIF income method), but must instead deal with under Part I (Treatment of tax losses)

FIF rules means sections EX 28 to EX 72 (which relate to foreign investment funds)

FIF superannuation interest means, for a person and an income year (the current year), the rights in a foreign superannuation scheme held by the person as a beneficiary or member that the person acquires under an arrangement with the foreign superannuation scheme, if—

(a)

the person enters the arrangement—

(i)

when the person is a resident of New Zealand and is treated under no double tax agreement as being resident in a foreign country or territory; and

(ii)

other than by a transaction described in section CF 3(21)(b) or (d) (Withdrawals from foreign superannuation scheme) and from a person who acquired the rights when being a non-resident or treated under a double tax agreement as being resident in a foreign country or territory; or

(b)

the person enters the arrangement when the person is a non-resident, or is treated under a double tax agreement as being resident in a foreign country or territory, and—

(i)

the rights held by the person in an income year (the qualifying year) ending before 1 April 2014 are an attributing interest and are treated by the person as an attributing interest in a return of income for the qualifying year filed before 20 May 2013; and

(ii)

the rights held by the person for the period (the qualifying period) from the end of the qualifying year to the beginning of the current year are treated by the person as an attributing interest in returns of income for the income years in the qualifying period

fifteen percent capital reduction is defined in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section

fifteen percent interest reduction is defined in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section

filing taxpayer means a person, other than—

(a)

a person who is a non-filing taxpayer for the applicable tax year:

(b)

a person that is an unincorporated body of persons, if section 42 of the Tax Administration Act 1994 applies to require the members of the body to file separate returns of income for the applicable tax year

film, except in section CC 9 (Royalties),—

(a)

means a recording on any medium from which a moving image may by any means be produced; and

(b)

includes a part of any such recording

film income means income of a person under section CC 10 (Films)

film production expenditure

(a)

means—

(i)

an expenditure or loss incurred in producing a film:

(ii)

an amount of depreciation loss on property used in producing the film:

(iii)

an amount of depreciation loss from disposing of depreciable property used in producing the film allowed under section EE 48 (Effect of disposal or event); and

(b)

does not include an expenditure incurred—

(i)

in acquiring an asset for which a deduction for an amount of depreciation loss is allowed:

(ii)

in acquiring a film right after the film is completed:

(iii)

directly in marketing or selling a film

film reimbursement scheme is defined in section DS 4 (Meaning of film reimbursement scheme)

film right means a right or interest, including a future or contingent right or interest, of any of the following kinds:

(a)

copyright in a film; or

(b)

a licence relating to the copyright in a film; or

(c)

an equitable right in the copyright in a film; or

(d)

an equitable right in a licence relating to the copyright in a film; or

(e)

any other right existing in or attaching to a film; or

(f)

a right to income, or a share of income, from the rental, sale, use, or other exploitation of a film

final instalment, in relation to provisional tax, means the last instalment of provisional tax due in a transitional year

finance lease means a lease of a personal property lease asset entered into by a person on or after 20 May 1999 that—

(a)

when the person enters the lease, involves or is part of an arrangement that involves—

(i)

the transfer of the ownership of the asset to the lessee or an associate of the lessee during or at the end of the term of the lease:

(ii)

the lessee or an associate of the lessee having the option of acquiring the asset for an amount that is likely to be substantially lower than the asset’s market value on the date of acquisition:

(iii)

a right of an associate of the lessee to acquire the asset, or a right of the lessor to require an associate of the lessee to acquire the asset, during the term of the lease under an arrangement that does not entitle the associate to receive all of the personal property lease payments that may fall due after the acquisition:

(b)

when the person enters the lease or from a later time, involves a term of the lease that is more than 75% of the asset’s estimated useful life as defined in section EE 63 (Meaning of estimated useful life):

(c)

the person enters on or after 20 June 2007 and is, or is part of, an arrangement that, when the person enters the lease or when a change in the terms of the arrangement changes the allocation or size of the risks and rewards incidental to ownership of the lease asset,—

(i)

involves the use of the asset outside New Zealand for all or most of the term of the lease; and

(ii)

involves income of any person who is not the lessor, arising from the use of the asset by any person, that is exempt income, or excluded income, or non-residents’ foreign sourced income; and

(iii)

is a finance lease under NZIAS 17 for the lessor, or for a company that is in the same group of companies as the lessor and derives assessable income from the arrangement, or is an arrangement under which persons who do not include the lessor bear substantially all the risks and rewards incidental to ownership of the lease asset, determined as at the time the person enters the lease and taking into account later changes to the arrangement

finance-related deduction means a deduction of a company that is part of a consolidated group, calculated as if the company were not part of the group and determined under section FM 3 (Liability of consolidated groups and group companies) for an amount, other than an amount that arises only from movement in currency exchange rates, of—

(a)

interest incurred:

(b)

expenditure under the financial arrangements rules or the old financial arrangements rules

financial arrangement

(a)

is defined in section EW 3 (What is a financial arrangement?) for the purposes of this Act except the old financial arrangements rules; and

(b)

is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

financial arrangements rules is defined in section EW 1(2) (What this subpart does)

financial asset has the same meaning as in NZIAS 32

financial assistance is defined in section HC 36(5) (Trusts and minor beneficiary rule) for the purposes of that section

financial institution means a registered bank or an entity subject to the Deposit Takers (Credit Ratings) Regulations 2009 that must use IFRSs to prepare financial statements

financial institution special purpose vehicle means a company or a trustee of a trust that, ignoring section HR 9,—

(a)

derives no exempt income; and

(b)

has all of its financial arrangements that are its assets treated as a financial institution’s financial arrangements for financial reporting purposes, but ignoring any current account balance that is incidental to the company’s or trustees’ sole purpose described in paragraph (e); and

(c)

receives only funds that—

(i)

relate to financial arrangements described in paragraph (b):

(ii)

are incidental to the company’s or trustees’s sole purpose described in paragraph (e); and

(d)

either—

(i)

operates to guarantee liabilities of the financial institution or of a company, incorporated in and resident in New Zealand, that is a member of a wholly-owned group of companies which includes the financial institution; or

(ii)

operates in relation to the company’s or trustees’ issue of residential mortgage backed securities; and

(e)

has interests in financial arrangements only for the sole purpose of carrying out the company’s or trustees’ operations described in paragraph (d)(i) or (ii); and

(f)

has financial statements that are prepared using IFRSs and are audited

financial liability has the same meaning as in NZIAS 32

financial risk is defined in section EY 12 (Meaning of life reinsurance)

financial statements is defined in section 6 of the Financial Reporting Act 2013, but the references in that definition to an entity and to a reporting entity are to be read as references to a person

financial value is defined in section FE 20(1) (Financial value and regulatory value) for the purposes of sections FE 7, FE 19, and FE 21 to FE 23 (which relate to a New Zealand banking group’s equity threshold)

financially independent means—

(a)

in full employment—

(i)

under a contract of service or apprenticeship that requires a person to work, whether on time or piece rates, no less than an average of 30 hours each week; or

(ii)

as the self-employment of a person in a business, manufacture, profession, trade, or undertaking carried on for pecuniary profit for not less than an average of 30 hours each week; or

(iii)

for any number of hours that is regarded as full-time employment for the purpose of an agreement, award, or contract relating to the employment; or

(b)

in receipt of a basic grant or an independent circumstances grant under the Student Allowances Regulations 1998 (SR 1998/277) or any regulations in substitution for those regulations; or

(c)

in receipt of payments under a Government-assisted scheme that the chief executive of the administering department considers analogous to a benefit payable under any of Parts 1A to 1P of the Social Security Act 1964; or

(d)

in receipt of a benefit, as defined in section 3 of the Social Security Act 1964

first business day, in relation to provisional tax, means—

(a)

the first day in an income year on which a person with a provisional tax liability derives income or incurs expenditure as a result of carrying on a taxable activity, if the person is not a natural person; and

(b)

the day following the last day in an income year on which a person with a provisional tax liability derived income from employment, if the person is a natural person

first payment period means the period starting on the 1st day of a month and ending with the 15th day of the month

first publication is defined in section EI 3(6) (Assigning or granting copyright) for the purposes of that section

first tracking date [Repealed]

fisher is defined in section EH 3(1)(b) (Persons to whom main income equalisation scheme applies)

fishing boat is defined in section EJ 2(6) (Spreading forward of deductions for repairs to fishing boats) for the purposes of that section

fishing business

(a)

is defined in section EH 36 (Other definitions) for the purposes of this Act except the provision to which paragraph (b) refers:

(b)

is defined in section EJ 2(6) (Spreading forward of deductions for repairs to fishing boats) for the purposes of that section

fishing quota emissions unit means an emissions unit—

(a)

transferred, under an allocation plan made under section 74 of the Climate Change Response Act 2002, to a person as an owner of individual transferable quota as defined in section 2 of the Fisheries Act 1996; and

(b)

held continuously by the person since the issue

fixed establishment

(a)

means a fixed place of business in which substantial business is carried on by a person; and

(b)

includes—

(i)

a branch, factory, shop, or workshop in which, in each case, substantial business is carried on; and

(ii)

a mine, oil well, quarry, or other place of natural resources subject to exploitation; and

(iii)

an agricultural, forestry, or pastoral property; and

(c)

does not include—

(i)

the use of facilities solely for the purpose of the delivery, display, or storage of goods or merchandise belonging to a business; or

(ii)

the maintenance of a fixed place of business solely for the purpose of acquiring goods or merchandise or for collecting information or for advertising for business

fixed life intangible property is defined in section EE 67 (Other definitions)

fixed principal financial arrangement

(a)

means a financial arrangement other than a variable principal debt instrument:

(b)

is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

fixed-rate foreign equity means an interest (the equity) in the capital of a foreign company held by a company (the holder) in relation to which the foreign company makes distributions—

(a)

at a rate that is a specific fixed percentage of the amount subscribed for the issue of the equity; or

(b)

at a rate that—

(i)

is a percentage of the amount subscribed for the issue of the equity; and

(ii)

has a fixed relationship to economic, commodity, industrial, or financial indices, to banking rates of interest, or to general commercial rates of interest; or

(c)

at a rate that would be given by paragraph (a) or (b) but for variations due to—

(i)

a fixed relationship to a rate of income tax:

(ii)

compensation to the holder for default by the foreign company:

(iii)

compensation to the holder for expenditure or loss related to the holding of the equity and suffered by the holder or by a person associated with the holder; or

(d)

equivalent to the payment of interest for money lent, having regard to—

(i)

whether or not the equity is redeemable:

(ii)

any security provided to the holder, including put or call options over the equity or an amount payable determined by reference to the amount of distributions payable:

(iii)

the variability or lack of variability of the distributions payable

fixed-rate share,—

(a)

in sections CD 22 (Returns of capital: off-market share cancellations), CX 55(4) (Proceeds from disposal of investment shares), GC 8, and GC 14 (which relate to transfer pricing arrangements between associated persons), and in the definitions of excluded fixed rate security and pre-1991 budget security, means a share issued by a company if the only dividend payable on the share, disregarding any dividend payable on the issue of the share, and any imputation credits attached to any dividend, is payable at a rate that—

(i)

is described in paragraph (b), (c), or (d); and

(ii)

is not set with a purpose and does not have an effect of defeating the intent and application of any provision of this Act whose application is dependent on the measurement of voting and market value interests:

(b)

for the purposes of paragraph (a)(i), the rate is a specific fixed percentage of the amount subscribed for the issue of the share:

(c)

for the purposes of paragraph (a)(i), the rate is a percentage of the amount subscribed for the issue of the share that is determined by a fixed relationship to commodity, economic, financial, or industrial indices, or to banking rates or general commercial rates of interest:

(d)

for the purposes of paragraph (a)(i), the rate is a percentage that could be of a kind referred to in paragraph (b) or (c) but for any variation in the rate of dividend that may occur only—

(i)

by a fixed relationship to a rate of income tax; or

(ii)

as may be necessary to compensate the shareholder for a default on the part of the paying company or expenditure or loss suffered by the shareholder, or a person associated with the shareholder, through holding the share; or

(iii)

by a combination of the factors in subparagraphs (i) and (ii):

(e)
[Repealed]

(f)

in section FA 2B (Stapled debt securities), and the definitions of proportional-stapling company and stapled debt security, means—

(i)

a share described in paragraph (a):

(ii)

a share that would be a share described in paragraph (a) but for a dividend or a variation in the rate of dividend that may occur when the share is converted into another share (the other share) if the gain is attributable solely to a cause set out in paragraph (g):

(iii)

a share for which the dividend payable is the equivalent of the payment of interest for money lent, having regard to the factors set out in paragraph (h):

(g)

for the purposes of paragraph (f)(ii), the causes are—

(i)

a change in value of the other share occurs in a period that starts no more than 30 days before the share is converted and ends when the share is converted, and the period was a term or condition of the share when the share was first issued:

(ii)

a term or condition of the share that existed when the share was first issued, and the term or condition sets the gain at a fixed percentage equal to 5% or a lesser percentage of the amount subscribed for the share:

(h)

for the purposes of paragraph (f)(iii), the factors are—

(i)

whether or not the share is redeemable:

(ii)

any security provided to the shareholder, including put or call options over the share or any amount payable determined by reference to the amount of dividend payable:

(iii)

the variability or lack of variability of the dividend payable:

(i)

in section EX 46(10)(a) and subpart FE (Interest apportionment on thin capitalisation), means a share meeting the requirements of paragraph (f)(i) and (iii)

flat-owning company is defined in section CD 31(2) (Flat-owning companies) for the purposes of that section, section HA 6 (Corporate requirements), and the definition of look-through company

FMA means the Financial Markets Authority established under Part 2 of the Financial Markets Authority Act 2011

foreign account information-sharing agreement means a double tax agreement that facilitates the automatic exchange by the parties of information relating to financial accounts, including—

(a)

the Agreement between the Government of New Zealand and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA brought into force for New Zealand by the Double Tax Agreements (United States of America—FATCA) Order 2014 (LI 2014/209), as amended from time to time:

(b)

the multilateral Convention on Mutual Administrative Assistance in Tax Matters, as amended by 2010 Protocol which was brought into force for New Zealand by the Double Tax Agreements (Mutual Administrative Assistance) Order 2013 (SR 2013/437), as amended from time to time

foreign ASAP means a financial arrangement that is an agreement for the sale and purchase of property or services and, at the time the ASAP is entered into 50% or more of the consideration in New Zealand dollars is in a foreign currency, measured using spot rates at that time

foreign attributed income means a company’s income for the income year that is—

(a)

attributed CFC income:

(b)

FIF income calculated under the attributed FIF income method

foreign attributed loss offsets [Repealed]

foreign bank is defined in section FG 1(2) (When this subpart applies) for the purposes of subpart FG (Treatment of notional loans to New Zealand branches of foreign banks)

foreign company means a company that—

(a)

is not resident in New Zealand; or

(b)

is treated under a double tax agreement as not being resident in New Zealand

foreign corporate limited partnership means an entity or group of persons that—

(a)

meets the definition of overseas limited partnership in section 4 of the Limited Partnerships Act 2008; and

(b)

is treated as a separate legal entity under the laws (other than taxation laws) of the country, territory, or jurisdiction where it is established

foreign country is defined in section DB 45(4) (Bribes) for the purposes of that section

foreign crew of fishing vessels instructions means the immigration instructions for foreign crew of fishing vessels, certified under section 22(1) of the Immigration Act 2009

foreign defined contribution scheme means a foreign superannuation scheme that operates on the principle of allocating contributions to the scheme on a defined basis to individual members

foreign dividend [Repealed]

foreign dividend company [Repealed]

foreign dividend company net earnings [Repealed]

foreign exempt entity is defined in section CW 12(4) (Proceeds of share disposal by qualifying foreign equity investor) for the purposes of that section

foreign exempt partnership is defined in section CW 12(4) (Proceeds of share disposal by qualifying foreign equity investor) for the purposes of that section

foreign exempt person is defined in section CW 12(4) (Proceeds of share disposal by qualifying foreign equity investor) for the purposes of that section

foreign expenditure is defined in section EG 1(10) (Election to use balance date used in foreign country) for the purposes of that section

foreign group [Repealed]

foreign income tax is defined in section LJ 3 (Meaning of foreign income tax) for the purposes of Part L (Tax credits and other credits)

foreign investment fund is defined in section EX 28 (Meaning of FIF)

foreign investment PIE means a multi-rate PIE that—

(a)

meets the requirements of sections HM 55C to HM 55H (which relate to the particular requirements for and treatment of foreign investment PIEs); and

(b)

chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment zero-rate PIE or a foreign investment variable-rate PIE

foreign investment variable-rate PIE means a foreign investment PIE that—

(a)

meets the requirements of section HM 19C (Modified rules for foreign investment variable-rate PIEs); and

(b)

chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment variable-rate PIE

foreign investment vehicle means an entity that—

(a)

has become a foreign investment vehicle under section HL 5(1) (Foreign investment vehicles); and

(b)

has not ceased to be a foreign investment vehicle under section HL 5(2)

foreign investment zero-rate PIE means a foreign investment PIE that—

(a)

meets the requirements of section HM 19B (Modified rules for foreign investment zero-rate PIEs); and

(b)

chooses under section HM 71B (Choosing to become a foreign investment PIE) to become a foreign investment zero-rate PIE

foreign LTC holder means—

(a)

a non-resident:

(b)

a trustee of a trust, if the trust has a non-resident settlor, but only to the extent of the proportion of the trust’s ownership interests that is equal to the proportion of settlements, by value, made by non-resident settlors, ignoring settlements arising from services provided for less than market value

foreign non-dividend income means income that—

(a)

does not have a source in New Zealand; and

(b)

is not a dividend; and

(c)

is not FIF income calculated under the fair dividend rate method

foreign PIE equivalent is defined in section HM 3 (Foreign PIE equivalents)

foreign public official [Repealed] 

foreign source income is defined in section EG 1(10) (Election to use balance date used in foreign country) for the purposes of that section

foreign-sourced amount means an amount of income that is not treated as having a source in New Zealand under sections YD 4 (Classes of income treated as having New Zealand source) and YZ 1 (Source rule for interest)

foreign superannuation scheme means a superannuation scheme constituted outside New Zealand

foreign superannuation withdrawal means a benefit for a person from a foreign superannuation scheme to which section CF 3 (Withdrawals from foreign superannuation scheme) applies

foreign tax [Repealed]

foreign trust is defined in section HC 11 (Foreign trusts)

foreign withholding tax means a tax, other than a New Zealand tax, that—

(a)

is withheld from an amount of income; and

(b)

is of substantially the same nature as NRWT

forest land emissions unit means a pre-1990 forest land emissions unit, a post-1989 forest land emissions unit, or a forest sink emissions unit

forest sink emissions unit means an emissions unit issued to a person in relation to a forest sink covenant under section 67Y of the Forests Act 1949 entered by the person

forester is defined in section EH 3(1)(c) (Persons to whom main income equalisation scheme applies)

forest land unit [Repealed]

forestry assets is defined in section FC 6 (Forestry assets transferred to close relatives) for the purpose of that section

forestry business includes forestry activities carried on by a person for the purpose of deriving income in relation to an emissions unit

forestry company means a company that is incorporated, under an agreement between the Crown, the Maori owners, and a holding company of the company, for the purposes of—

(a)

acquiring land partly from the Crown, partly from the Maori owners, and partly from a holding company of the company; and

(b)

carrying on a forestry business on the land

formation loss, for a PIE, means an amount of tax loss or a loss balance arising from a period before the entity became a PIE as described in sections HM 66 to HM 70 (which relate to the treatment of formation losses)

former Financial Reporting Act is defined in section EZ 32F(4) (Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS) for the purposes of that section and section EX 21E

former Financial Reporting Standard 34 is defined in section EZ 32F(4) (Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS) for the purposes of that section and section EX 21E

former Financial Reporting Standard 35 is defined in section EZ 32F(4) (Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS) for the purposes of that section and section EX 21E

former financial reporting standards without IFRS is defined in section EZ 32F(4) (Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS) for the purposes of that section and section EX 21E

former generally accepted accounting practice without IFRS is defined in section EZ 32F(4) (Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS) for the purposes of that section and section EX 21E

forward contract,—

(a)

in the financial arrangements rules, means—

(i)

an agreement that is a conditional or an unconditional agreement to acquire or dispose of property, or obtain or supply services, if the agreement can be settled without the property being delivered or the services being performed:

(ii)

an agreement that is a conditional or an unconditional agreement to acquire or dispose of foreign exchange or a financial arrangement:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

friendly society means a society or credit union or association of credit unions registered or treated as registered under the Friendly Societies and Credit Unions Act 1982

fringe benefit is defined in section CX 2 (Meaning of fringe benefit)

fringe benefit tax means fringe benefit tax payable under section RD 26 (Liability for FBT), and FBT has the same meaning

fringe benefit tax rules means the provisions listed in section RD 25 (FBT rules and their application) and FBT rules has the same meaning

full reinsurance is defined in section EY 12(2) (Meaning of life reinsurance)

full-time earner is defined in section MA 7 (Meaning of full-time earner for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

fully credited is defined in section CD 43(26) (Available subscribed capital (ASC) amount) for the purposes of that section

fully credited for conduit tax relief [Repealed]

fully imputed,—

(a)

for the purposes of sections CB 26, CB 32C, CD 39, EX 20B, RF 8, RF 10, and schedule 6, table 1B (which relate to distributions by PIEs and certain dividends), means the amount calculated under section RF 9(2) (When dividends fully imputed):

(b)

for the purposes of sections CW 15, HA 14, HA 16, and HA 19 (which relate to dividends paid by qualifying companies), and RE 2 (Resident passive income) means the amount calculated under section HA 15(2) (Fully imputed distributions)

fund provider, for a person and a KiwiSaver scheme or a complying superannuation fund of which they are a member, means the trustees of the scheme or fund

further FDP [Repealed]

further income tax means an amount of tax by way of further income tax that a company may be liable to pay under—

(a)

sections OB 65 to OB 70 (which relate to further tax payable by a company for a closing debit balance, or when the company stops being an ICA company):

(b)

sections OK 21 or OK 22 (which relate to further tax payable by a Maori authority for a closing debit balance, or when it stops being a Maori authority)

futures contract means a forward contract traded on a recognised futures exchange

FX hedge means a financial arrangement that is a hedge of foreign exchange risk

gaming-machine gambling means class 4 gambling, as defined in section 30 of the Gambling Act 2003, that utilises or involves a gaming machine

gaming-machine operator’s licence means a class 4 operator’s licence as defined in section 4 of the Gambling Act 2003

gaming-machine venue licence means a class 4 venue licence as defined in section 4 of the Gambling Act 2003

general insurance means insurance that is not life insurance

general insurance contract [Repealed]

general limitation means a rule described in any of section DA 2(1) to (6) (General limitations)

general partner

(a)

means a general partner of a limited partnership:

(b)

includes a general partner of an overseas limited partnership as defined in section 4 of the Limited Partnerships Act 2008

general permission is defined in section DA 1(1) (General permission)

general power of appointment

(a)

includes a power or authority that—

(i)

is conferred by will or conferred by a settlement during life or created in any other manner; and

(ii)

is exercisable orally or by instrument made during life or by will or by any other means; and

(iii)

enables its holder, or would enable its holder if they were of full capacity, to obtain or appoint or dispose of any property, or to charge any sum or money on any property, as the holder thinks fit for their own benefit; and

(b)

does not include a power or authority—

(i)

exercisable by a person in a fiduciary capacity under a disposition not made by them; or

(ii)

exercisable as a mortgagee

generally accepted accounting practice is defined in section 8 of the Financial Reporting Act 2013

generally accepted accounting practice with IFRS is defined in section EZ 32F(4) (Applicable accounting standard for section EX 21E: former generally accepted accounting practice without IFRS) for the purposes of that section and section EX 21E

geothermal energy proving period means, for a person’s geothermal well that is not used to exploit geothermal energy, a period—

(a)

starting with the completion or acquisition of the well; and

(b)

other than the case of the person disposing of the well to another person, ending when the well for the foreseeable future is not intended, and cannot reasonably be expected, to be used or available for use in—

(i)

deriving assessable income:

(ii)

carrying on a business for the purposes of deriving assessable income

geothermal well means a bore or well solely for the purpose of investigating or exploiting geothermal energy in New Zealand

gifting settlor is defined in section EX 46(12) (Limits on choice of calculation methods)

goods, in subpart MX (Tax credits for R&D tax losses), in sections CX 1 (Goods and services tax), DB 2 (Goods and services tax), and EA 3 (Prepayments), and in the definitions of R&D expenditure, R&D material, and of services, is defined in section 2 of the Goods and Services Tax Act 1985

government screen production payment [Repealed]

government stock is defined in section DZ 11(3) (Film reimbursement scheme on or before 30 June 2001) for the purposes of that section

Government Superannuation Fund means the fund established under the Government Superannuation Fund Act 1956

grandparented charity means, for an entity, a charity that, before 3 May 2016,—

(a)

is an owner of the entity:

(b)

has entered into an arrangement to become an owner of the entity

grandparented consolidated company, for a company that is part of a consolidated group and for an income year (the current income year), means a company that before 17 May 2006 chose to form or join the consolidated group, when—

(a)

the current income year is the 2005–06 or 2006–07 income year:

(b)

the company carries on a business, and the total amount of the company’s finance-related deductions allocated to the income year before the current income year (the previous income year) is—

(i)

zero, because no deductions are allocated to the previous income year; or

(ii)

less than 50% of the company’s total deductions allocated to the previous income year, calculated as if the company were not part of the group and determined under section FM 3 (Liability of consolidated groups and group companies)

grandparented Maori authority means, for an entity, a Maori authority that, before 3 May 2016,—

(a)

is an owner of the entity:

(b)

has entered into an arrangement to become an owner of the entity:

(c)

is a beneficiary of a trust that is an owner of the entity

grandparented structure means, for a person, any item on the following list, if the person acquired the item, or entered into a binding contract for the purchase or construction of the item, on or before 30 July 2009:

(a)

barns, including barns (drying):

(b)

carparks (buildings):

(c)

chemical works:

(d)

fertiliser works:

(e)

powder drying buildings:

(f)

site huts

grandparenting income year is defined in section HA 5(5) (Elections to become qualifying company)

grandparenting start day is defined in section EY 30 (Transitional adjustments: life risk)

grant-related suspensory loan means a loan—

(a)

that—

(i)

is made by a public authority; and

(ii)

is not a loan of the kind described in section CF 2(1) (Remission of specified suspensory loans); and

(iii)

includes the term that the liability of the borrower may be wholly or partly remitted; or

(b)

that is made by the Rural Banking and Finance Corporation of New Zealand as an irrigation suspensory loan and designated as such; or

(c)

that is made by the Rural Banking and Finance Corporation of New Zealand as a West Coast drainage suspensory loan and designated as such

greater Christchurch is defined in section CZ 29(5) (Accommodation expenditure: Canterbury earthquake relief) for the purposes of that section

grey list means the list of countries in schedule 24, part A (International tax rules: grey list countries)

grey list company means a company that is resident under section YD 3 (Country of residence of foreign companies) in a grey list country if either—

(a)

the company is liable in the country to income tax on the company’s income because the company—

(i)

is domiciled in the country:

(ii)

is resident in the country:

(iii)

is incorporated in the country:

(iv)

has its place of management in the country:

(b)

the company is organised under the laws of the country and the country—

(i)

imposes on persons holding income interests in the company the liability for income tax on the company’s income; and

(ii)

under the laws of the country, is the source of 80% or more of the income of the company

grey list dividend [Repealed]

gross, for an amount, means without any deduction from the amount

gross gambling proceeds means gross proceeds, as defined in regulation 3(1) of the Gambling (Class 4 New Proceeds) Regulations 2004, plus prizes

group funding debt means the amount calculated under section FE 23 (Banking group’s funding debt)

group investment fund means a group investment fund established under the—

(c)

Public Trust Office Act 1957

group life master policy is defined in section EY 30 (Transitional adjustments: life risk)

group of companies is defined in section IC 3 (Common ownership: group of companies)

group of persons includes 1 person

GST means goods and services tax under the Goods and Services Tax Act 1985

GST charged means GST charged under section 8(1) of the Goods and Services Tax Act 1985

GST payable in sections CX 1 (Goods and services tax), DB 2 (Goods and services tax), and DB 3(3) (Determining tax liabilities), has the same meaning as tax payable in section 2 of the Goods and Services Tax Act 1985, but does not include interest payable under Part 7 of the Tax Administration Act 1994

GST ratio is defined in section RC 8(2) (GST ratio method)

guaranteed residual value means an amount to which both the following apply:

(a)

it is equal to the value of a personal property lease asset as agreed in the lease by the lessor and the lessee; and

(b)

its receipt by the lessor, on the expiry of the term of the lease, is assured or guaranteed by the lessee

guarantor is defined in—

(a)

section HB 11(12) (Limitation on deductions by persons with interests in look-through companies) for the purposes of that section:

(b)

section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section

guardian is defined in section HC 36(5) (Trusts and minor beneficiary rule) for the purposes of that section

hedge and hedging are defined in section EM 8 (Some definitions) for the purposes of subpart EM (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)

herd livestock means a type of specified livestock that a person—

(a)

chooses to value under the herd scheme; and

(b)

values for an income year under sections EC 14 to EC 21 (which relate to the herd scheme)

herd scheme

(a)

means the livestock valuation method described in sections EC 14 to EC 21 (which relate to the herd scheme); and

(b)

includes the livestock valuation method set out in—

(ii)

sections EL 5 and EL 6 of the Income Tax Act 1994; and

(iii)

section 86A of the Income Tax Act 1976 as in force before its repeal by section 21 of the Income Tax Amendment Act (No 2) 1993; and

(iv)

section 86D of the Income Tax Act 1976

herd value means, for an animal that is herd livestock and for an income year, the national average market value of the livestock declared for the income year

herd value ratio means—

(a)

the ratio calculated or recalculated under section EC 17 (Herd value ratio) or EC 18 (Inaccurate herd value ratio) for herd livestock other than livestock on the Chatham Islands:

(b)

the adjustment set by the Commissioner under section EC 19 (Chatham Islands adjustment to herd value) for herd livestock on the Chatham Islands

higher credit value

(a)

is defined in section GB 35(4) (Imputation arrangements to obtain tax advantage) for the purposes of that section:

(b)

is defined in section GB 42(4) (Maori authority credit arrangements to obtain tax advantage) for the purposes of that section

high-priced livestock means an animal of a type set out in schedule 17, column 1 (Types and classes of livestock) to which both the following apply:

(a)

a person acquires it for a acquisition price that is at least—

(i)

$500; and

(ii)

5 times the national average market value, in the income year of acquisition or in the previous income year, whichever is greater, for the class in schedule 17, column 2 in which the livestock is able to be classified at the end of the income year of acquisition; and

(b)

at the time the person acquires it,—

(i)

it is capable of being used for breeding; or

(ii)

it is expected to be capable of being used for breeding when it reaches maturity

hire purchase agreement

(a)

means—

(i)

an agreement under which goods are let or hired with an option to purchase, however the agreement describes the payments:

(ii)

an agreement for the purchase of goods by instalment payments, however the agreement describes the payments, under which the person who agrees to purchase the goods is given possession of them before the total amount payable has been paid; and

(b)

includes an agreement to sell goods at retail under which—

(i)

the buyer grants security over the goods to the seller for some or all of the purchase price; and

(ii)

the property in the goods passes to the buyer subject to the security, in which case the agreement is a hire purchase agreement made at the time the sale is made; and

(c)

includes a sale and loan arrangement under which—

(i)

a person lends money on the security of goods that have been bought or are to be bought at retail if some or all of the purchase price is paid out of the proceeds of the loan; and

(ii)

the loan is made by the seller or by a third party, arranged by the seller, who is engaged in the business of lending money or who habitually lends money in the course of the third party’s business, in which case the arrangement is a hire purchase agreement made at the time the loan is made; and

(d)

does not include an agreement under which property in the goods passes absolutely to the person who agrees to purchase them at the time of the agreement or on or at any time before delivery of the goods, unless the agreement is of a kind described in paragraph (a)(i) or (a)(ii); and

(e)

does not include an agreement made otherwise than at retail; and

(f)

does not include an agreement to the extent to which the property that is the subject of the agreement is livestock or bloodstock

hire purchase asset means the personal property that is the subject of a hire purchase agreement

hire purchase payment means a payment made under a hire purchase agreement

holder is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

holding company,—

(a)

for a forestry company, means a company associated with the forestry company:

(b)
[Repealed]

home [Repealed]

home ownership requirements [Repealed]

home vendor mortgage is defined in section LZ 8 (Meaning of home vendor mortgage) for the purposes of sections LZ 6 and LZ 7 (which relate to credits for interest on home vendor mortgages)

honorarium is defined in section CW 62B (Voluntary activities) for the purposes of that section

household member [Repealed]

housekeeper [Repealed]

housekeeping payments [Repealed]

ICA means imputation credit account

ICA company means a company that must establish and maintain an imputation credit account,—

(a)

as a New Zealand resident company, under section OB 1 (General rules for companies with imputation credit accounts):

(b)

as an Australian ICA company, because of an election under section OB 2 (Australian companies choosing to have imputation credit accounts)

identical goods, for the purposes of the FBT rules, for any goods, means other goods that are the same in terms of physical characteristics, quality, and reputation, except for minor differences in appearance that do not affect the value of the goods

identical share means a share that confers the same rights and imposes the same obligations on a holder as an original share

IFRS means a New Zealand Equivalent to International Financial Reporting Standard, in effect under the Financial Reporting Act 2013, and as amended from time to time or an equivalent standard issued in its place

IFRS 4 means the IFRS, numbered NZ IFRS 4, that relates to insurance contracts

IFRS designated FX hedge means a FX hedge that is designated, under IFRS rules, as a hedge for a foreign ASAP for which section EW 32(2B) (Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease) applies

IFRSE means an International Financial Reporting Standard approved by the International Accounting Standards Board, as amended from time to time

impaired credit adjustment is defined in section EW 15D(3) (IFRS financial reporting method) for the purposes of that section.

implementation date is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

improvement, for an item of depreciable property, is defined in section EE 67 (Other definitions)

improvements, in sections CB 7 (Disposal: land acquired for purposes of business relating to land) and CB 11 (Disposal within 10 years of improvement: building business), means improvements to land that—

(a)

are not minor; and

(b)

are made—

(i)

by a person erecting a building or otherwise; or

(ii)

by an associated person erecting a building or otherwise

imputation additional tax means an amount of tax arising under section OB 71 (Imputation additional tax on leaving group of companies) or OB 72 (Imputation additional tax on joining wholly-owned group)

imputation credit

(a)

means a credit referred to in section OA 5(2) (Credits):

(b)

is further defined in section CD 16(4) (Certain dividends not increased by tax credits) for the purposes of that section:

(c)

is further defined in section CD 17(4) (Credit transfer notice) for the purposes of that section

imputation credit account means the account referred to in section OA 2(1)(a) (Memorandum accounts)

imputation debit means a debit referred to in section OA 6(2) (Debits)

imputation group means, at a time, an imputation group formed under section FN 7 (Forming imputation groups)

imputation penalty tax means tax payable under section 140B of the Tax Administration Act 1994

imputation ratio means the ratio set out in section OB 60(3) (Imputation credits attached to dividends)

imputation rules means the provisions listed in section FN 2 (Imputation rules)

income, for a person, means income of the person under section BD 1(1) (Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income)

income derived from New Zealand [Repealed]

income from employment

(a)

means salary or wages or an extra pay:

(b)

in sections DA 2(4) (General limitations) and DE 1 (What this subpart does), excludes payments referred to in section RD 5(1)(b)(iii) (Salary or wages) to the extent to which those payments are made to 1 of the following:

(i)

a self-employed person, as defined in section 2 of that Act, under the Accident Compensation Act 1982; or

(ii)

an earner in relation to compensation for loss of earnings other than as an employee, as defined under regulations made under section 167 of that Act, under the Accident Rehabilitation and Compensation Insurance Act 1992; or

(iii)

a self-employed person, as defined in section 13 of that Act, under the Accident Insurance Act 1998, for compensation paid under schedule 1, part 2, clause 7 of that Act; or

(iv)

a self-employed person, as defined in section 6 of the Act, under the Accident Compensation Act 2001, for compensation paid under schedule 1, part 2, clause 32 of that Act:

(c)

in sections DA 2(4) and DE 1, includes salary, wages, or other income to which section RD 3(2) to (4) (PAYE income payments) applies:

(d)

in section DA 2(4), includes excluded income derived by a person from employment

income from forestry is defined in section EH 34 (Meaning of income from forestry)

income from mining [Repealed] 

income from personal exertion is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

income interest,—

(a)

for a foreign company, is defined in sections EX 8 to EX 13 (which relate to the calculation of a person’s income interest):

(b)

in subparts FE (Interest apportionment on thin capitalisation) and OE (Branch equivalent tax accounts (BETA)), and in the imputation rules, means an income interest of 10% or greater under the rules in sections EX 14 to EX 17 (which relate to the 10% threshold and variations in the income interest level)

income statement means a statement issued by the Commissioner to a natural person that contains the information required by section 80E of the Tax Administration Act 1994

income tax means income tax imposed under section BB 1 (Imposition of income tax) except to the extent to which it has a different meaning under section YA 2 (Meaning of income tax varied)

income tax liability

(a)

means, for a person,—

(i)

an income tax liability for the person and a tax year calculated under subpart BC (Calculating and satisfying income tax liabilities), if subparagraph (ii) does not apply; or

(ii)

income tax for the person and a tax year calculated under subpart HM (Portfolio investment entities), if the person is a multi-rate PIE; and

(b)

in sections EF 5 (Use of money interest payable by person) and EF 6 (Different tax years), includes circumstances in which a person has no tax to pay or is entitled to a refund of tax

income year means,—

(a)

for a person who has elected, under section 38 of the Tax Administration Act 1994 and with the Commissioner’s consent, to have a period not ending on 31 March, the elected period (which may be less than a year in some cases):

(b)

for any other person, the tax year

income-tested benefit means any of the following benefits paid or payable under the Social Security Act 1964:

(a)

sole parent support:

(b)

emergency benefit:

(c)
[Repealed]

(d)

supported living payment:

(e)
[Repealed]

(f)

jobseeker support:

(g)
[Repealed]

(h)

young parent payment:

(i)

youth payment

increase in savings [Repealed]

independent living means occupancy of a place under an arrangement that—

(a)

does not have a level of compulsory care:

(b)

has a level of compulsory care that is merely incidental to the occupancy

indirect attributing interest, for a person with an income interest in a FIF, means the income interest that the person has in a second FIF if—

(a)

the FIF has an income interest in the second FIF; and

(b)

the income interest in the second FIF would be an attributing interest for the person if the person held the income interest directly

indirect income interest is defined in section EX 10 (Indirect income interests)

industrial artistic copyright means the copyright in an artistic work, if—

(a)

the artistic work has been applied industrially, as provided by section 75 of the Copyright Act 1994; and

(b)

section 75 of the Copyright Act 1994 provides for a special exception from copyright protection for the copyright in the artistic work; and

(c)

the relevant period for the special exception, in section 75(1)(c) to (e) of the Copyright Act 1994, has not started

industry research co-operative [Repealed]

inflation-indexed instrument means an instrument under which a person lends money and an amount payable for the money lent is determined by a fixed relationship to 1 or more indices of general price inflation in New Zealand

inform, for a mode of communication, has the meaning set out in section 14B of the Tax Administration Act 1994

initial period is defined in section FZ 3(4) (Income of lessor under specified lease) for the purposes of that section

initial provisional tax liability, means—

(a)

for a person who is not a natural person, or a person who is a natural person and a trustee of a trust, a provisional tax liability for a tax year in which the person starts to derive income from a taxable activity when—

(i)

they did not derive income from a taxable activity in any of the 4 previous tax years; and

(ii)

they have residual income tax of $60,000 or more in the tax year; and

(b)

for a person who is a natural person and not a trustee of a trust, a provisional tax liability for a tax year when—

(i)

they did not have residual income tax of more than $2,500 in any of the 4 previous tax years; and

(ii)

they have residual income tax of $60,000 or more in the tax year; and

(iii)

in the tax year, they stopped deriving income from employment and then started to derive income from a taxable activity

initial treatment is defined in section CU 7(3) (Some definitions)

Inland Revenue Acts means the Acts listed in the schedule of the Tax Administration Act 1994

input tax

(a)

is defined in section 3A of the Goods and Services Tax Act 1985; and

(b)

includes, for a supply, GST levied on goods entered for home consumption under the Customs and Excise Act 1996

instalment, in sections FZ 2 to FZ 4 (which relate to specified leases), and in the definitions of instalment period and outstanding balance, means an amount payable by a lessee, under a lease, by way of—

(a)

repayment of some or all of a loan that a lessor is treated as having advanced under section FZ 2(2) (Effect of specified lease on lessor and lessee); or

(b)

payment of interest; or

(c)

both

instalment date means a date for payment of provisional tax for a tax year that is the day and month specified for a person with a provisional tax liability in schedule 3, part A (Payment of provisional tax and terminal tax)

instalment period is defined in section FZ 3(4) (Income of lessor under specified lease) for the purposes of that section

institution [Repealed]

insurance,—

(a)

in section CR 3 (Income of non-resident general insurer) means insurance of a kind described in section CR 3(3):

(b)

in section YD 8 (Apportionment of premiums derived by non-resident general insurers) means insurance of a kind described in section YD 8(4)

insurance contract includes a cover note and a renewal of an insurance contract

insured person, in sections CR 3, HD 16, and YD 8 (which relate to non-resident general insurers),—

(a)

in relation to general insurance as described in sections CR 3(3)(a) and YD 8(4)(a), means a person who is liable to pay a premium to an insurer for the insurance and is entitled by the payment of the premium to make a claim against the insurer:

(b)

in relation to a guarantee against risk as described in sections CR 3(3)(b) and (c) and YD 8(4)(b) and (c), means a person who is liable to pay a premium to an insurer for the guarantee, whether or not the payment of the premium entitles the person to make a claim against the insurer

insurer

(a)

means a person who assumes liability under a contract of insurance:

(b)

in sections CR 3, DW 3, HD 16, HD 17, and YD 8 (which relate to non-resident general insurers),—

(i)

in relation to general insurance as described in sections CR 3(3)(a) and YD 8(4)(a), means a person who provides the insurance and to whom an insured person is liable to pay a premium:

(ii)

in relation to a guarantee against risk as described in sections CR 3(3)(b) and (c) and YD 8(4)(b) and (c), means a person who provides the guarantee and to whom an insured person is liable to pay a premium

intellectual property includes—

(a)

anything that results from research or development (for example, a prototype):

(b)

rights related to intellectual property (for example, a right to distribute an item for which there is a patent):

(c)

intellectual property of a category that is set out in Part 2 of the Agreement on Trade-Related Aspects of Intellectual Property Rights, also known as the TRIPS Agreement

interest,—

(a)

for a person’s income,—

(i)

means a payment made to the person by another person for money lent to any person, whether or not the payment is periodical and however it is described or calculated; and

(ii)

does not include a redemption payment; and

(iii)

does not include a repayment of money lent:

(b)

for the RWT rules and the NRWT rules, includes a redemption payment:

(bb)

for the NRWT rules and a related-party debt,—

(i)

includes an amount that is taken into account under section EW 15 (What is included when spreading methods used) and paid by a person in relation to money lent to the person; and

(ii)

excludes a repayment of the money lent:

(c)

in sections DB 6 (Interest: not capital expenditure), DB 7 (Interest: most companies need no nexus with income), and DB 8 (Interest: money borrowed to acquire shares in group companies),—

(i)

includes expenditure incurred under the financial arrangements rules or the old financial arrangements rules; and

(ii)

does not include interest to which section DB 1(1)(e) (Taxes, other than GST, and penalties) applies:

(cb)

in relation to an amount made available by a foreign bank, includes interest arising under subpart FG (Treatment of notional loans to New Zealand branches of foreign banks):

(d)

in relation to land, interest in land, estate or interest in land, and similar terms are defined under the definition of estate

interest expenditure is defined in section DG 5 (Meaning and treatment of interest expenditure for this subpart) for the purposes of subpart DG (Expenditure related to use of certain assets)

interest instalment date means an instalment date—

(a)

on which an instalment of provisional tax is due and payable under section RC 9 (Provisional tax payable in instalments); and

(b)

after which, except in a case to which section 120KC(1) of the Tax Administration Act 1994 applies, an instalment amount that is overpaid or underpaid attracts use of money interest, a late payment penalty, or a shortfall penalty, as applicable

interested shareholder is defined in section HD 15(9) (Asset stripping of companies) for the purposes of that section

intermediary means a person described in section RP 2 or RP 17 (which relate to PAYE intermediaries and tax pooling intermediaries) for the purposes of subpart RP (Intermediaries)

internal software development [Repealed]

internal software development controller [Repealed]

internal software development group [Repealed]

international aircraft is defined in section EE 67 (Other definitions)

international organisation is defined in section CW 22(3) (Amounts derived by overseas experts and trainees in New Zealand by government arrangement) for the purposes of that section

international tax rules means—

(a)

the following provisions:

(i)
[Repealed]

(ii)
[Repealed]

(iii)

subpart CQ (Attributed income from foreign equity):

(iv)
[Repealed]

(v)

subpart DN (Attributed losses from foreign equity):

(vi)

subpart EX (Controlled foreign company and foreign investment fund rules):

(vii)

section FM 6(4) (Some general rules for treatment of consolidated groups):

(viii)

sections GB 7 to GB 16 (which relate to avoidance arrangements):

(ix)

section GC 4 (Disposals and acquisitions of FIF attributing interests):

(x)

subpart IQ (Attributed controlled foreign company net losses and foreign investment fund net losses):

(xi)

sections LK 1 to LK 7 (which relate to foreign tax credits and CFCs):

(xii)
[Repealed]

(xiii)

section YA 2 (Meaning of income tax varied):

(xiv)
[Repealed]

(xv)
[Repealed]

(xvi)

section YD 3 (Country of residence of foreign companies); and

(b)

section 61 of the Tax Administration Act 1994

investment activity is defined in section MB 3 (When person carries on 1 or more businesses or investment activities) for the purpose of that section

investment society dividend means—

(a)

a dividend declared by a friendly society; or

(b)

a dividend declared by a registered society as defined in section 2 of the Industrial and Provident Societies Act 1908; or

(c)

for a building society,—

(i)

a dividend declared by the society; or

(ii)

some tangible or intangible benefit that a member or a shareholder receives for disposing to the society of a share in the society; the benefit may or may not be relief from an obligation and may or may not be convertible into money

investor means,—

(a)

for a group investment fund, a person who is entitled, by reason of the terms of the trust under which the group investment fund is established, to the income from the money, investments, and other property of the group investment fund:

(b)

for a portfolio investment entity, is defined in section HM 4 (Who is an investor?)

(c)
[Repealed]

investor class, for a portfolio investment entity, is defined in section HM 5 (What is an investor class?)

investor interest,—

(a)

for an investor in a portfolio investment entity, means an interest in the entity that gives the holder an entitlement to a distribution of proceeds from the entity’s investments:

(b)

is defined in section EM 8 (Some definitions) for the purposes of subpart EM (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)

in-work payment [Repealed]

in-work tax credit is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

issue,—

(a)

for a financial arrangement, means the act of creating the financial arrangement:

(b)

is defined in section YZ 1 (Source rule for interest) for the purposes of that section

issuer is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

joint venture agreement, for an airport operator,—

(a)

means an agreement made between an airport authority and the Crown acting by and through the Minister of Transport under section 94 of the Civil Aviation Act 1990; and

(b)

includes any other agreement of a similar nature made between the Crown and an airport authority, whether or not the airport authority was, at the time the agreement was made, an airport authority, and whether or not the agreement was made before the commencement of the Civil Aviation Act 1990

jurisdictional attributed income is defined in section IQ 2B(9) (Effect of attributed CFC net loss and some FIF net loss from before first affected year) for the purposes of that section and section LK 5B (Credits from tax year before first affected year)

jurisdictional BE income is defined in section IQ 2B(9) (Effect of attributed CFC net loss and some FIF net loss from before first affected year) for the purposes of that section and section LK 5B (Credits from tax year before first affected year)

jurisdictional income ratio is defined in section IQ 2B(9) (Effect of attributed CFC net loss and some FIF net loss from before first affected year) for the purposes of that section and section LK 5B (Credits from tax year before first affected year)

KiwiSaver calculation period [Repealed]

KiwiSaver contributions means a contribution required to be deducted under Part 3, subpart 1 of the KiwiSaver Act 2006

KiwiSaver scheme has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

know-how includes trade secrets, confidential information, and information with commercial value

Kyoto unit [Repealed]

land

(a)

includes any estate or interest in land:

(b)

includes an option to acquire land or an estate or interest in land:

(c)

does not include a mortgage:

(d)

is defined in section CB 19(3) (Business exclusion from sections CB 6 to CB 11) for the purposes of that section:

(e)

is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section:

(f)

in the definitions of permit area, petroleum mining asset, prospecting expenditure, and residual expenditure,—

(i)

means all land within the territorial limits of New Zealand; and

(ii)

includes land below the territorial sea of New Zealand or any other waters within the territorial limits of New Zealand; and

(iii)

includes the continental shelf; and

(iv)

includes the seabed and subsoil below any sea that is beyond the territorial sea of New Zealand but that, by New Zealand legislation and under international law, has been or may be designated as an area in which the rights of New Zealand relating to natural resources may be exercised

land investment company means a company that, in a tax year,—

(a)

is not a portfolio investment entity; and

(b)

on 80% or more of the days in the corresponding income year on which the company has property with a market value of $100,000 or more, owns property that—

(i)

consists of interests in land or shares in a land investment company that does not own, directly or indirectly, shares in the company; and

(ii)

has a market value of 90% or more of the market value of all the property of the company; and

(c)

meets the requirements of section HM 12 (Income types)

land loss is defined in section HM 65(3) (Use of land losses of investor classes) for the purposes of that section

land provisions means the following provisions:

(a)

sections CB 7 to CB 11 (which relate to certain land transactions), except CB 8 (Disposal: land used for landfill, if notice of election):

(b)

section CB 15 (Transactions between associated persons):

(bba)

section CC 1B (Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence):

(bbab)

section EE 67 (Other definitions):

(bb)

section EI 4B (Consideration for agreement to grant, renew, extend, or transfer leasehold estate or licence):

(c)

sections FB 3 to FB 5 (which relate to the transfer of land on a settlement of relationship property)

LAQC [Repealed]

large budget film grant means a payment that—

(a)

is in the nature of a large budget screen production grant or post-production digital and visual effects grant; and

(b)

is made in relation to a film or television production; and

(c)

is authorised by the New Zealand Film Commission in relation to a company that—

(i)

is resident in New Zealand:

(ii)

has a permanent establishment in New Zealand

large budget screen production grant [Repealed]

late balance date has the meaning given in section YE 1(7) (References to balance dates and years)

lease

(a)

means a disposition that creates a leasehold estate:

(b)

in sections DZ 9 (Premium paid on land leased before 1 April 1993) and EZ 8 (Premium paid on land leased before 1 April 1993),—

(i)

means a disposition by which a leasehold estate is created; and

(ii)

includes a licence:

(c)

for the purposes of subpart EE (Depreciation), includes a licence to occupy:

(d)

in sections EJ 10 (Personal property lease payments), EX 21(30) and (31) (Attributable CFC amount and net attributable CFC income or loss: calculation rules), FA 6 to FA 11 (which relate to finance leases), FZ 2 to FZ 4 (which relate to specified leases) and in the definitions of cost price (paragraphs (b) to (e)), finance lease, guaranteed residual value, initial period, instalment, lessee (paragraph (b)), lessor (paragraph (b)), operating lease, outstanding balance, personal property lease asset, specified lease, and term of the lease,—

(i)

means an agreement under which a lessor transfers to a lessee for the term of the lease a personal property lease asset or the right to possess a personal property lease asset in consideration for a personal property lease payment; and

(ii)

includes a sublease; and

(iii)

includes a licence to use intangible property; and

(iv)

includes a hire or bailment; and

(v)

includes an arrangement for the leasing of a personal property lease asset to the lessee or an associated person under 2 or more consecutive or successive leases, treated for this purpose as 1 lease, if the entitlement of the lessee or associated person to each consecutive or successive lease is, when the lessee enters the arrangement, essentially unconditional or conditional on the payment of predetermined fees; and

(vi)

does not include a hire purchase agreement, the definition of which applies, for this purpose, as if it did not contain paragraph (f); and

(vii)

does not include an assignment of a hire purchase agreement, the definition of which applies, for this purpose, as if it did not contain paragraph (f):

(e)

is defined in section GC 5(5) (Leases for inadequate rent) for the purposes of that section:

(f)

in the financial arrangements rules, means—

(i)

a lease as described in paragraph (d):

(ii)

an arrangement relating to property that is land, livestock, or bloodstock and that would be a lease as described in paragraph (d) if the property were a personal property lease asset:

(iii)

an occupation right agreement as defined in the Retirement Villages Act 2003

leasehold estate includes any estate, however created, other than a freehold estate

legal and equitable rights is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure)

legal defeasance means a defeasance in which the release of a party to a financial arrangement or an excepted financial arrangement from the primary obligation of the financial arrangement or the excepted financial arrangement is—

(a)

acknowledged formally by the creditor; or

(b)

acknowledged formally by a duly appointed trustee or agent of the creditor; or

(c)

established by legal judgment

legal expenses is defined in section DB 62 (Deduction for legal expenses) for the purposes of that section

legal life is defined in section EE 67 (Other definitions)

less than 10% holder is defined in section YC 15(3) (Directors’ knowledge of failure to meet requirements of continuity provision) for the purposes of that section

lessee,—

(a)

for a lease as described in paragraph (c) of the definition of lease, includes the holder of a licence to occupy:

(b)

for a lease as described in paragraph (d) of the definition of lease,—

(i)

means a person who leases a personal property lease asset from a lessor; and

(ii)

includes a trustee or assignee of the person:

(c)

for a hire purchase agreement, means the person who obtains the use of, or the right to use, the hire purchase asset under the agreement

lessor,—

(a)

for a lease as described in paragraph (c) of the definition of lease, includes the grantor of a licence to occupy:

(b)

for a lease as described in paragraph (d) of the definition of lease,—

(i)

means a person who assembles, manufactures, purchases, or otherwise acquires a personal property lease asset and leases it to a lessee; and

(ii)

includes a trustee or assignee of the person:

(c)

for a hire purchase agreement,—

(i)

means the person who grants to the lessee the use of, or the right to use, a hire purchase asset under the agreement; and

(ii)

includes an assignee of the person in relation to the hire purchase agreement

levy, for a statutory producer board, means a sum payable by a member of the board under a power of the board to require or request the member to pay an amount of levy

liabilities is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure)

licence-specific assets is defined in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section

licensed security holder is defined in section RL 4(8) (How much RLWT?) for the purposes of section RL 4

life financial reinsurance is defined in section EY 12 (Meaning of life reinsurance)

life fund PIE means a separate identifiable fund forming part of a life insurer that—

(a)

meets the requirements of section HM 7 (Requirements); and

(b)

chooses to become a PIE under section HM 71 (Choosing to become PIE); and

(c)

has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and

(d)

holds investment subject to life insurance policies under which benefits are directly linked to the value of the investments held in the fund

life insurance is defined in sections EY 8 (Meaning of life insurance) and EY 14 (Life insurance and life reinsurance: how sections relate)

Life Insurance Fund means a Life Insurance Fund as defined in section 15 of the Life Insurance Act 1908 and, for a life insurer, means the life insurer’s Life Insurance Fund

life insurance policy

(a)

is defined in sections EY 9 (Meaning of life insurance policy) and EY 14 (Life insurance and life reinsurance: how sections relate); and

(b)

when referred to in relation to a life insurer, means a life insurance policy under which the life insurer is the insurer

life insurance rules [Repealed]

life insured means—

(a)

a human being on whose death or survival the payment of a benefit under a life insurance policy is contingent, including the payment of an annuity whose term is contingent on human life; and

(b)

a human being to whom an annuity whose term is not contingent on human life is payable under a life insurance policy

life insurer

(a)

is defined in sections EY 10 (Meaning of life insurer) and EY 14 (Life insurance and life reinsurance: how sections relate):

(b)

is defined in section CX 11(3) (Employment-related loans: loans by life insurers) for the purposes of that section:

(c)

in section YC 17 (Demutualisation of insurers), and in the FBT rules, means a person carrying on a business of providing life insurance

life reinsurance is defined in sections EY 12 (Meaning of life reinsurance) and EY 14 (Life insurance and life reinsurance: how sections relate)

life reinsurance policy

(a)

is defined in sections EY 13 (Meaning of life reinsurance policy) and EY 14 (Life insurance and life reinsurance: how sections relate); and

(b)

when referred to in relation to a life reinsurer, means a life reinsurance policy under which the life reinsurer is the reinsurer

life reinsurer is defined in sections EY 12(4) (Meaning of life reinsurance) and EY 14 (Life insurance and life reinsurance: how sections relate)

life risk means an actuarially determined risk contingent on human life

life risk component

(a)

means—

(i)

for a premium paid under a life insurance policy, the amount of the premium that gives rise to income derived by the life insurer for providing services, including the bearing of life risk:

(ii)

for a claim payable under a life insurance policy, the amount of the claim that gives rise to deductions for the life insurer for providing services, including the bearing of life risk:

(b)

does not include an amount that is a savings component

limitation rule is defined in section DD 1(3) (Entertainment expenditure generally)

limited attribution company is a company that is—

(a)

a building society:

(b)

a co-operative company registered under Part 2 or 3 of the Co-operative Companies Act 1996:

(c)

a listed company:

(d)

a widely-held company:

(e)

a foreign company that is not a closely-held company

limited non-transaction shares is defined in section CD 34B (Distributions to members of co-operative companies)

limited partner means a limited partner of a limited partnership or an overseas limited partnership as defined in section 4 of the Limited Partnerships Act 2008

limited partnership

(a)

means a limited partnership registered under the Limited Partnerships Act 2008; and

(b)

includes an overseas limited partnership as defined in section 4 of that Act; and

(c)

despite paragraph (a) or (b), does not include a listed limited partnership or a foreign corporate limited partnership

limited partnership deduction is defined in section HG 11(12) (Limitations on deductions by partners in limited partnerships) for the purposes of that section

limited partnership net deduction [Repealed]

limited-recourse amount is defined in section GB 48(2) (Defined terms for sections GB 45 and GB 46) for the purposes of sections GB 45 and GB 46 (which relate to arrangements involving money not at risk)

limited-recourse arrangement is defined in section DB 31(5B) (Bad debts) for the purposes of that section

limited-recourse loan is defined in section GB 48(3) (Defined terms for sections GB 45 and GB 46) for the purposes of sections GB 45 and GB 46 (which relate to arrangements involving money not at risk)

lines trust means a trustee of a trust that—

(a)

has had shares allocated or transferred to or vested in it, being shares in—

(i)

an energy company as defined in section 2(1) of the Energy Companies Act 1992 under an approved establishment plan under that Act:

(ii)

a company under section 76 of the Energy Companies Act 1992:

(iii)

a company to which have been transferred assets and liabilities of the Crown under section 16 of the Southland Electricity Act 1993; and

(b)

continues to hold shares described in paragraph (a)

liquidation, for a company,—

(a)

includes—

(i)

removal of the company from the register of companies under the Companies Act 1993; and

(ii)

termination of the company’s existence under any other procedure of New Zealand or foreign law; and

(b)

includes, in references in this Act to anything occurring on liquidation, anything occurring—

(i)

during the period that starts with a step that is legally necessary to achieve liquidation, including the appointment of a liquidator or a request of the kind referred to in section 318(1)(d) of the Companies Act 1993; and

(ii)

for the purpose of enabling liquidation

listed company means, at any time, a company any shares in which are at that time quoted on an official list of a recognised exchange

listed horticultural plant, in sections DO 5 to DO 9 (which relate to deductions relating to horticultural plants),—

(a)

means a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is of a type that is listed in a determination made by the Commissioner under section 91AAB of the Tax Administration Act 1994:

(b)

does not include—

(i)

a tree planted mainly for the purposes of timber production:

(ii)

a tree or other similar plant planted mainly for the purposes of ornamentation:

(iii)

a vine planted mainly for the purposes of producing grapes for wine production

listed industrial mineral is defined in section CU 8 (Meaning of listed industrial mineral)

listed limited partnership means an entity or group of persons that is listed on a recognised exchange, and that entity or group of persons—

(a)

is a limited partnership registered under the Limited Partnerships Act 2008; or

(b)

meets the definition of overseas limited partnership in section 4 of that Act

listed PAYE intermediary means a person which the Commissioner may list as an intermediary under section 15G of the Tax Administration Act 1994

listed PIE means a company that—

(a)

is listed on a recognised exchange in New Zealand or meets the requirements of section HM 18 (Requirements for listed PIEs: unlisted companies); and

(b)

meets the requirements of section HM 7 (Requirements); and

(c)

chooses to become a PIE under section HM 71 (Choosing to become PIE); and

(d)

has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and

(e)

is not a life fund PIE; and

(f)

has not chosen under section HM 2(3) (What is a portfolio investment entity?) to become a multi-rate PIE

listed research provider [Repealed]

livestock on the Chatham Islands means livestock that are on hand on the Chatham Islands at the end of an income year

living alone payment [Repealed]

loan,—

(a)

has the same meaning as money lent:

(b)

in sections CD 27 (Property made available intra-group) and CD 39 (Calculation of amount of dividend when property made available) and in the FBT rules, includes any amount that a person advances or gives as principal under a financial arrangement, but not an excepted financial arrangement:

(c)
[Repealed]

(d)

is defined in section CZ 3(5) (Exchange variations on 8 August 1975) for the purposes of that section

local authority

(a)

means a local authority as defined in the Local Government Act 2002:

(b)

includes—

(i)

the administering body, as defined in the Reserves Act 1977, of any reserve classified under the Act as a recreation reserve or a scenic reserve:

(ii)

an airport authority, other than an airport company, as defined in the Airport Authorities Act 1966:

(iii)

the Aotea Centre Board of Management established by the Auckland Aotea Centre Empowering Act 1985:

(iv)

the council of the Auckland Institute and Museum constituted under the Charitable Trusts Act 1957:

(v)

the Canterbury Museum Trust Board continued in existence by section 5(1) of the Canterbury Museum Trust Board Act 1993:

(vi)

the Otago Museum Trust Board continued in existence by section 5(1) of the Otago Museum Trust Board Act 1996:

(vii)

Auckland Transport (as established by section 38 of the Local Government (Auckland Council) Act 2009):

(viii)

other than for the purposes of section CW 39(4) (Local authorities), Auckland Regional Holdings as established by section 18 of the Local Government (Auckland) Amendment Act 2004:

(ix)

the New Zealand Local Government Funding Agency Limited while it is a council-controlled organisation within the meaning of section 6(1) of the Local Government Act 2002:

(x)

the Auckland Council Independent Maori Statutory Board established by section 81 of the Local Government (Auckland Council) Act 2009

logbook term is defined in section DE 8 (Logbook term)

long-term bailment is defined in section EC 27 (Some definitions) for the purposes of subpart EC (Valuation of livestock)

look-through company means an entity—

(a)

that is described in paragraph (a) of the definition of company; and

(b)

that, treating the entity as a company for the purposes of this definition, is resident in New Zealand under section YD 2 (Residence of companies); and

(c)

that is not treated under, or for the purposes of, a double tax agreement as not resident in New Zealand; and

(d)

for which there are 5 or fewer look-through counted owners, treating look-through counted owners who are relatives, ignoring any later death or dissolution of marriage, union, or relationship, as 1 person; and

(e)

for which all owners have only look-through interests; and

(eb)

for which an owner that is a trustee of a trust does not make a distribution to a company that is directly or indirectly a beneficiary of the trust; and

(ec)

for which no owner is a tax charity, unless the tax charity is a grandparented charity for the entity; and

(ed)

for which an owner that is a trustee of a trust does not make a distribution of income to a tax charity that is a beneficiary of the trust, unless the tax charity has no control or influence in relation to the operation of the entity and no control or influence in relation to the distributions of the trust; and

(ee)

for which no owner is a Maori authority, unless the Maori authority is a grandparented Maori authority for the entity; and

(ef)

for which an owner that is a trustee of a trust does not make a distribution to a Maori authority that is directly or indirectly a beneficiary of the trust, unless the Maori authority is a grandparented Maori authority for the entity; and

(eg)

that, treating the entity as a company for the purposes of this definition, in the case where more than 50% of the total ownership interests in the entity are held by foreign LTC holders, the entity has a foreign-sourced amount for the income year that is not more than—

(i)

$10,000; or

(ii)

if 20% of the entity’s gross income for the year (the 20% gross amount) is greater than $10,000, the 20% gross amount; and

(f)

that is not a flat-owning company; and

(g)

for which an election under section HB 13 (Valid elections) has been received by the Commissioner

look-through company deduction is defined in section HB 11(12) (Limitation on deductions by persons with interests in look-through companies)

look-through counted owner means, for an entity, a person who—

(a)

is a natural person that—

(i)

is not a trustee; and

(ii)

has a look-through interest for the entity:

(b)

is a natural person who has derived, as beneficiary income of a trust, income that arose from a direct or indirect beneficial interest in a look-through interest for the entity for the current income year or 1 of the last 3 income years:

(bb)

is a natural person who,—

(i)

on or after the first day of the 2017–18 income year, receives a distribution (the distribution) from a trust, other than a distribution sourced from income derived by the trust before the 2017–18 income year; and

(ii)

the distribution is received in the current income year, or 1 of the last 3 income years if the relevant year is after the 2016–17 income year; and

(iii)

the trust has a direct or indirect beneficial interest in a look-through interest for the entity in the current income year, or 1 of the last 3 income years if the relevant year is after the 2016–17 income year:

(c)

is a trustee of a trust that—

(i)

has a look-through interest for the entity or has a direct or indirect beneficial interest in a look-through interest for the entity, treating co-trustees as 1 person; and

(ii)

has no beneficiary that is a look-through counted owner:

(d)

is a natural person that has a voting interest or a market value interest in relation to a company that has derived, as beneficiary income from a trust, income that arose from a direct or indirect beneficial interest in a look-through interest for the entity for the current income year or 1 of the last 3 income years

look-through interest means a person’s shares in an entity, or in a look-through company (LTC) treating the look-through company as a company for the purposes of this definition, if—

(a)
[Repealed]

(b)

every other shareholder has the same rights, proportionally, as the person in relation to a distribution by the entity or LTC; and

(c)

the entity or LTC has only shareholders that are natural persons, or corporate trustees

loss

(a)

includes an amount of depreciation loss, except when any of paragraphs (b) to (d) applies:

(b)

means an attributed CFC loss when used in the expression “attributed CFC income or loss”:

(c)

means a net attributable FIF loss when used in the expression “net attributable FIF income or loss”:

(d)

means a FIF loss when used in the expression “FIF income or loss”

loss-attributing qualifying company [Repealed]

loss balance, for a tax year,—

(a)

means the sum of all tax loss components—

(i)

arising in the tax year and included in the tax loss for the tax year under section IA 2(3) and (4) (Tax losses), to the extent not used under section IA 3(1) to (3) or IA 4(1)(a) (which relate to the first use and to particular losses):

(ii)

arising in an earlier tax year and carried forward under section IA 3(4) to the tax year, to the extent not used under section IA 3(1) to (3) or IA 4(1)(a):

(b)

does not include a tax loss component included in a company’s loss balance at the end of the tax year if the requirements of section IA 5 (Restrictions on companies’ loss balances carried forward), as modified by sections IZ 4 to IZ 6 (which relate to tax losses for tax years before 1992), have not been met

loss period is defined in section IQ 7(4) (When group membership lacking in loss period) for the purposes of that section

low-turnover trader is defined in section EB 13(2) (Low-turnover valuation) for the purposes of subpart EB (Valuation of trading stock (including dealer’s livestock))

lump sum payment is defined in section EI 3(6) (Assigning or granting copyright) for the purposes of that section

MACA means Maori authority credit account

main deposit is defined in section EH 36 (Other definitions)

main home means, for a person, the 1 dwelling—

(a)

that is mainly used as a residence by the person (a home); and

(b)

with which the person has the greatest connection, if they have more than 1 home

main income equalisation account is defined in section EH 36 (Other definitions)

main income equalisation deposit, in subpart MB (Adjustment of net income for family scheme), means a payment under section EH 4 (Main deposit) made to the Commissioner on or after 1 April 2011 for which a deduction is allowed under section DQ 1 (Main income equalisation scheme)

main income equalisation refund, in subpart MB (Adjustment of net income for family scheme), means a refund under sections EH 8 to EH 26 (which relate to refunds from main income equalisation accounts), to the extent to which the refund—

(a)

relates to a deposit made on or after 1 April 2011; and

(b)

is not interest payable under section EH 6 (Interest on deposits in main income equalisation account)

main income equalisation scheme means the scheme referred to in section EH 1(2)(a) (Income equalisation schemes)

main maximum deposit is defined in section EH 35 (Meaning of main maximum deposit)

major shareholder, for a close company, means any person who—

(a)

owns, or has the right to acquire, at least 10% of the ordinary shares of the company:

(b)

has the power to control, directly or indirectly, at least 10% of the ordinary shares of the company:

(c)

owns, or has the right to acquire, at least 10% of the voting interests in the company:

(d)

has the power to control, directly or indirectly, at least 10% of the voting interests in the company:

(e)

has, in any other way, 10% or more of the control of the company

Maori authority means a person who has made an election under section HF 11 (Choosing to become Maori authority)

Maori authority credit, for a distribution by a Maori authority, means—

(a)

a credit referred to in section OA 5(8) (Credits):

(b)

the amount treated as attached to the distribution under section RE 24 (When amount of tax treated as Maori authority credit)

Maori authority credit account means the account referred to in section OA 2(1)(g) (Memorandum accounts)

Maori authority credit account return means a return that must be filed under section 70B of the Tax Administration Act 1994

Maori authority credit ratio means the ratio set out in section OK 19 (Maori authority credits attached to distributions)

Maori authority debit means a debit referred to in section OA 6(8) (Debits)

Maori authority rules means the provisions listed in section HF 1(2) (Maori authorities and the Maori authority rules)

Maori incorporation is defined in section 4 of the Maori Land Act 1993

Maori investment company means a company that is incorporated for the purpose of acquiring shares or debentures issued by a forestry company for an unpaid purchase amount for Maori land acquired by the forestry company from the Maori owners

Maori land means Maori freehold land as defined in the Maori Land Act 1993

Maori owners

(a)

means the persons who have a beneficial interest in Maori land acquired by a forestry company; and

(b)

includes every trustee for a Maori owner, the Maori Trustee, and every Maori incorporation that has a beneficial interest in the land

market interest is defined in section RD 35(5) (Employment-related loans: value using market interest rates) for the purposes of that section

market value,—

(a)

for a share or option quoted on the official list of a recognised exchange, at the time, means an amount equal to the middle market quotation at the time for a share or option having the same terms as the share or option to be valued, unless the quotation is not a fair reflection of the market value, having regard at the time to the matters referred to in paragraph (e) of the definition of recognised exchange:

(b)

for a share or option not quoted on the official list of a recognised exchange at the time, means the amount that a willing purchaser would pay to acquire the share or option in an arm’s length acquisition at the time and that is determined using a method that—

(i)

conforms with commercially acceptable practice; and

(ii)

may, in appropriate cases, have regard to the present value at the time of the company’s anticipated income or cash flows and the realisable value at the time of the company’s assets; and

(iii)

results in a valuation that is fair and reasonable:

(bb)

is defined in section DG 3(4) (Meaning of asset for this subpart) for the purposes of subpart DG (Expenditure related to use of certain assets):

(c)

in subpart EB (Valuation of trading stock (including dealer’s livestock)), does not include any GST that would be charged on the disposal by a person of their trading stock if the disposal would be a taxable supply:

(d)

is defined in section EX 70 (Market value of life policy and superannuation entitlements) for certain purposes of sections EX 28 to EX 72 (which relate to the FIF rules):

(e)

is defined in section RD 27(3) (Determining fringe benefit values) for the purposes of that section:

(f)

is defined in section RD 40(3) (Goods) for the purposes of that section

market value circumstance, for a company at any time,—

(a)

means an occasion or situation in which, at the time, the company has on issue a debenture—

(i)

that is not an excluded fixed rate security or pre- 1991 budget security; and

(ii)

to which section FA 2 (Recharacterisation of certain debentures) or FA 2B (Stapled debt securities) applies:

(b)

also means an occasion or situation in which, at the time,—

(i)

the company has on issue a share that is not an excluded fixed rate security or a pre-1991 budget security; and

(ii)

the payment of a dividend is guaranteed or secured to the holder by some person other than the company; and

(iii)

the directors of the company know or could reasonably be expected to know at the time that the payment of a dividend is so guaranteed or secured:

(c)

also means an occasion or situation in which, at the time, an option exists that—

(i)

is not an excluded option; and

(ii)

is to acquire a share in the company; and

(iii)

is granted by the company or a person other than the company:

(d)

also means an occasion or situation in which, at the time, an option exists that—

(i)

is not an excluded option; and

(ii)

is to require a person to acquire a share in the company:

(e)

also means an occasion or situation in which, at the time, an arrangement or a series of related or connected arrangements exists that—

(i)

relates to shares or options over shares in the company issued by the company or any other person; and

(ii)

has a purpose or effect of defeating the intent and application of any provision of this Act whose application is dependent on the measurement of voting and market value interests:

(f)

does not exist under any of paragraphs (a) to (e) if, at the time, no share in the company has a value higher than zero, except for an excluded fixed rate security or a pre-1991 budget security, and no option over a share in the company has a value higher than zero, except for an excluded option:

(g)

also means an occasion or situation in which, at the time,—

(i)

under any of paragraphs (a) to (e), a direct market value circumstance exists for another company (the shareholder company); and

(ii)

the shareholder company is associated with the company; and

(iii)

under section YC 4 (Look-through rule for corporate shareholders), any fraction of any market value interest held, or treated under section YC 4 as held, by the shareholder company in the company is treated as held by any other person

market value interest

(a)

means, for a person and a company and a time, the percentage market value interest that the person is treated as holding in the company at the time under sections YC 2 to YC 20 (which relate to the measurement of company ownership):

(b)

is further defined in section HA 44 (Measuring effective interests) for the purposes of subpart HA (Qualifying companies (QC)) and the definition of effective interest

master fund means—

(a)

a group investment fund that derives category A income; or

(b)

a public unit trust

maturity,—

(a)

in the financial arrangements rules, means,—

(i)

for an agreement for the sale and purchase of property or services or an option, the date on which the agreement or option ends:

(ii)

for any other financial arrangement, the date on which the last payment contingent on the financial arrangement is made:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

maximum account balance is defined in section EK 23 (Other definitions) for the purposes of subpart EK (Environmental restoration accounts)

maximum deficit debit [Repealed]

maximum payment is defined in section EK 22 (Meaning of maximum payment) for the purposes of subpart EK (Environmental restoration accounts)

maximum permitted ratio, for an imputation credit or a Maori authority credit, means a ratio calculated under section OA 18 (Calculation of maximum permitted ratios)

maximum pooling value is defined in section EE 65 (Meaning of maximum pooling value)

measurement period, for an income year of a reporting bank, means 1 of the measurement periods for the income year described in section FE 8 (Measurement dates) for the purposes of subpart FE (Interest apportionment on thin capitalisation)

member,—

(a)

in sections CD 33(1) (Payments corresponding to notional distributions of producer boards and co-operative companies) and OB 73 to OB 75 (which relate to imputation credit accounts of statutory producer boards), and in the definitions of levy and produce transactions, for a statutory producer board and for an income year, means a person who—

(i)

is resident in New Zealand; and

(ii)

carries on in the year a farming or agricultural or other business in relation to which the board has special statutory functions; and

(iii)

is liable to pay a levy to the board for the year or enters into produce transactions with the board during the year:

(b)
[Repealed]

(c)

in subpart HE (Mutual associations) in relation to a statutory producer board and to an income year, means a person who—

(i)

is liable for the year to pay a levy to the statutory producer board; or

(ii)

during the year, supplies produce or goods to the statutory producer board, in terms of the body’s primary statutory functions:

(d)

is defined in section RE 30(10) (When unincorporated bodies hold certificates) for the purposes of that section:

(e)

in the Maori authority rules, means a person, or group of persons, who is—

(i)

a shareholder of a Maori authority that is a company:

(ii)

a beneficiary of a Maori authority that is the trustees of a trust

member credit contribution, for a person, means the total of the following amounts:

(a)

an amount of a superannuation contribution to the person’s KiwiSaver scheme or complying superannuation fund that is subject to the KiwiSaver scheme rules or complying fund rules, as applicable, other than—

(i)

an employer’s superannuation cash contribution made for the person:

(ii)

a contribution withdrawn under a mortgage diversion facility provided for in regulations made under section 229 of the KiwiSaver Act 2006:

(iib)

Crown contribution (as that term is defined in the KiwiSaver Act 2006) for the person:

(iii)

an amount accounted for under paragraph (b):

(iv)

a superannuation contribution that was transferred from an Australian complying superannuation scheme and contributed to a KiwiSaver scheme:

(b)

an amount received and held for the person by the Commissioner that is an amount to which section 73, 74, or 75 of the KiwiSaver Act 2006 applies, other than—

(i)

an employer’s superannuation cash contribution made for the person:

(ii)

an amount received and held by the Commissioner but not paid to the provider of the person’s KiwiSaver scheme in the relevant member credit year unless the amount has not been paid because of the person’s death or because of a refund under section 113 of the KiwiSaver Act 2006

member’s contribution, in relation to a superannuation fund,—

(a)

means a member’s contribution to the fund; and

(b)

includes any return on the contribution

memorandum account means an account listed in section OA 2(1) (Memorandum accounts)

mineral

(a)

means all minerals and metals; and

(b)

includes clay, coal, gravel, kauri gum, precious stones, sand, and stone

mineral miner is defined in section CU 6 (Meaning of mineral miner)

mineral mining asset is defined in section CU 9 (Some definitions)

minibus means a motor vehicle, designed wholly or mainly for the carriage of persons, the interior of which contains—

(a)

3 seats, each of which—

(i)

is designed for the seating of 2 or more adult persons; and

(ii)

is permanently fixed to the motor vehicle; and

(iii)

is neither collapsible nor capable of being folded down; or

(b)

more than 3 seats, of which not less than 3 are each—

(i)

designed for the seating of 2 or more adult persons; and

(ii)

permanently affixed to the motor vehicle; and

(iii)

neither collapsible nor capable of being folded down

minimum family tax credit is defined in section MA8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

minimum market value interest

(a)

is defined in section IA 5(6) (Restrictions on companies’ loss balances carried forward) for the purposes of Part I (Treatment of tax losses):

(b)

is defined in section LP 4(3) (Continuity rules for carrying credits forward) for the purposes of that section

minimum QC interest is defined in section HA 6(5) (Corporate requirements) for the purposes of that section

minimum voting interest

(a)

is defined in section IA 5(6) (Restrictions on companies’ loss balances carried forward) for the purposes of Part I (Treatment of tax losses):

(b)

is defined in section LP 4(3) (Continuity rules for carrying credits forward) for the purposes of that section

mining company [Repealed] 

mining development expenditure is defined in section DU 11 (Meaning of mining development expenditure)

mining exploration expenditure is defined in section DU 10 (Meaning of mining exploration expenditure)

mining holding company [Repealed] 

mining operations is defined in section CU 7(1) (Some definitions)

mining or prospecting right is defined in section CU 9(4) (Some definitions)

mining outgoing excess [Repealed] 

mining permit is defined in section 2 of the Crown Minerals Act 1991

mining permit area [Repealed] 

mining prospecting expenditure is defined in section DU 9 (Some definitions)

mining prospecting information is defined in section DU 9(2) (Some definitions)

mining purposes [Repealed] 

mining rehabilitation expenditure is defined in section DU 12 (Meaning of mining rehabilitation expenditure)

mining share [Repealed] 

mining venture [Repealed] 

Minister means the Minister of Finance

minister of religion is defined in—

(a)

section CE 1E(6) (Exception: accommodation provided to ministers of religion) for the purposes of that section:

(b)

section CZ 33(8) (Transitional exception for accommodation provided to ministers of religion) for the purposes of that section

minor is defined in section HC 35(3) (Beneficiary income of minors) for the purposes of that section and sections HC 36, HC 37, LE 4, and LF 2 (which relate to beneficiary minors)

mixed-ownership enterprise means an entity specified in schedule 36, part B (Government enterprises)

money,—

(a)

in section GB 48 (Defined terms for sections GB 45 and GB 46), in the financial arrangements rules, and in the definition of security payment, includes—

(i)

money’s worth, whether or not convertible into money:

(ii)

the right to money, including the deferral or cancellation of some or all of an obligation to pay money:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

money lent means—

(a)

an amount of money that a person lends in some way, including by depositing it in an account, whether or not the lending is secured or evidenced in writing:

(b)

an amount of credit that a person gives, including by not enforcing a debt, whether or not the giving is secured or evidenced in writing:

(c)

an amount of money that a person lends, or credit that a person gives, under an obligation or arrangement, whether or not secured or evidenced in writing:

(d)

an amount of money that goes from a person (person A) to another person (person B) in consideration for person B’s promise to pay person A an amount of money and that is less than the amount that person B promises to pay person A. For the purposes of this paragraph,—

(i)

money goes from person A when it is paid to person B:

(ii)

person B’s promise is not required to be secured or evidenced in writing:

(iii)

person B includes any other person with whom person B is an associated person:

(e)

for the purposes of the NRWT rules and a related-party debt, when paragraphs (a) to (d) do not apply, an amount that is taken into account under section EW 15 (What is included when spreading methods used) that provides funding to a person

monthly instalment plan is defined in section EZ 30(3) (Base premium for 1998–99 premium year under the Accident Insurance Act 1998) for the purposes of that section

mortality profit [Repealed]

mortality profit formula [Repealed]

mortgage means a mortgage, charge, or other security, whether legal or equitable

motor vehicle,—

(a)

in subpart DE (Motor vehicle expenditure), means a motor vehicle that—

(i)

is a road vehicle, whenever or however used; and

(ii)

is not a trailer; and

(iii)

is of the kind ordinarily used for the carriage of persons or the transport or delivery of goods or animals:

(b)

in the FBT rules, and in the definition of car,—

(i)

is defined in section 2(1) of the Land Transport Act 1998; and

(ii)

does not include a vehicle the gross laden weight of which is more than 3500 kilograms

multi-rate PIE means a company, superannuation fund, or group investment fund that—

(a)

meets the requirements of section HM 7 (Requirements); and

(b)

chooses to become a PIE under section HM 71 (Choosing to become PIE); and

(c)

has not chosen to cancel PIE status under section HM 29 (Choosing to cancel status); and

(d)

is not a benefit fund PIE; and

(e)
[Repealed]

mutual transaction means a transaction of the kind described in section HE 2 (Classes of mutual transaction) entered into between an association and its members, or with members and other persons who are not members

national average market value, for a class of livestock and for an income year, means the national average market value determined under section EC 15 (Determining national average market values) for livestock of the class for the income year

national standard cost scheme means the livestock valuation method specified in section EC 22 (National standard cost scheme)

natural person is defined in section FE 4 (Some definitions) for the purposes of subpart FE (Interest apportionment on thin capitalisation)

natural resource includes—

(a)

land:

(b)

water:

(c)

air:

(d)

soil or subsoil below land, water, or air:

(e)

a mineral:

(f)

a geographic or geological feature:

(g)

a part of the electromagnetic spectrum:

(h)

a form of energy:

(i)

a living organism, whether naturally or artificially generated:

(j)

an ecosystem:

(k)

a right to or interest in an item referred to in any of the preceding paragraphs

net asset balance is defined in section DG 11(7) (Interest expenditure: close companies) for the purposes of subpart DG (Expenditure related to use of certain assets)

net assets is defined in section HR 12 (Non-exempt charities: taxation of tax-exempt accumulation) for the purposes of that section

net attributable CFC income, for a foreign company and for an accounting period, means the amount calculated for the accounting period under section EX 20C(1)(a) (Net attributable CFC income or loss)

net attributable CFC loss, for a foreign company and for an accounting period, means the amount calculated for the accounting period under section EX 20C(1)(b) (Net attributable CFC income or loss)

net attributable FIF income, for a FIF and for an accounting period, means an amount of zero or more calculated for the accounting period under section EX 50(3) (Attributable FIF income method)

net attributable FIF loss, for a FIF and for an accounting period, means an amount of less than zero calculated for the accounting period under section EX 50(3) (Attributable FIF income method)

net family scheme income is defined in section ME 3 (Meaning of net family scheme income) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

net gambling proceeds means net proceeds as defined in section 4 of the Gambling Act 2003

net income means net income for a tax year calculated under section BC 4 (Net income and net loss)

net loss means a net loss for a tax year calculated under section BC 4 (Net income and net loss) and reduced by the amount extinguished by the Commissioner under section MX 5 (Cancellation of R&D tax losses) and section 177C(5) of the Tax Administration Act 1994

net mining loss is defined in section IS 1(3) (General treatment of mineral miners’ net losses) for the purposes of subpart IS (Mineral miners’ and petroleum miners’ tax losses)

new asset is defined in section EZ 24 (Meaning of new asset)

new business is defined in section EY 29 (Shareholder base other profit: profit participation policies that are new business) for the purposes of that section

new company tax rate person,—

(a)

means a person who uses a 28% basic tax rate for the 2011–12 income year or later income years:

(b)

includes, for the purposes of subpart OZ (Terminating provisions), a multi-rate PIE:

(c)

does not include, for the purposes of subpart RZ (Terminating provisions), a multi-rate PIE

new personal tax rate person means a person whose basic rate of income tax is calculated under schedule 1, part A, clause 1 for the 2010–11 income year or a later income year

new reporting standard is defined in section DB 35 (Some definitions) for the purposes of section DB 34 (Research or development)

new start grant [Repealed]

new tax rate person [Repealed]

New Zealand includes—

(a)

the continental shelf:

(b)

the water and the air space above any part of the continental shelf that is beyond New Zealand’s territorial sea, as defined in section 3 of the Territorial Sea, Contiguous Zone, and Exclusive Economic Zone Act 1977, if and to the extent to which—

(i)

any exploration or exploitation in relation to the part, or any natural resource of the part, is or may be undertaken; and

(ii)

the exploration or exploitation, or any related matter, involves, or would involve any activity on, in, or in relation to the water or air space

New Zealand banking group, for a registered bank, means the New Zealand banking group referred to in sections FE 36 and FE 36B (which identify the members of a New Zealand banking group) for the purposes of subpart FE (Interest apportionment on thin capitalisation)

New Zealand business, in relation to a life insurer not resident in New Zealand, means the part of the business of the life insurer that consists of life insurance policies or life reinsurance policies offered or entered into in New Zealand

New Zealand emissions unit means a New Zealand unit as defined in section 4(1) of the Climate Change Response Act 2002

New Zealand net equity, for a New Zealand banking group is the amount referred to in section FE 21 (Banking group’s New Zealand net equity) for the purposes of subpart FE (Interest apportionment on thin capitalisation)

New Zealand-new asset is defined in section EZ 25 (Meaning of New Zealand-new asset)

New Zealand partnership means a partnership that—

(a)

is a limited partnership registered under the Limited Partnerships Act 2008; or

(b)

has 50% or more of its partners’ interests in capital, by value, held by New Zealand residents; or

(c)

has its centre of management in New Zealand ignoring section HG 2

New Zealand repatriation amount [Repealed]

New Zealand resident

(a)

means a person resident in New Zealand under—

(i)

section EY 49 (Non-resident life insurer becoming resident):

(ii)

sections YD 1 to YD 3 (which relate to residence):

(b)

is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

New Zealand superannuation

(a)

means New Zealand superannuation payable under Part 1 of the New Zealand Superannuation and Retirement Income Act 2001; and

(b)

includes—

(i)
[Repealed]

(ii)
[Repealed]

(iii)
[Repealed]

(c)

does not include—

(i)

portable New Zealand superannuation; or

(ii)

a supplement or benefit paid or payable under any of sections 61DB, 61DC, 61DD, 61DE, 61EA, 61G, and 69C of the Social Security Act 1964

New Zealand superannuitant, for a tax year,—

(a)

means a person who receives New Zealand superannuation in the tax year; and

(b)

does not include a person who receives New Zealand superannuation at a rate specified in—

(i)

schedule 1, clause 2 of the New Zealand Superannuation and Retirement Income Act 2001; or

(ii)
[Repealed]

New Zealand tax means income tax imposed by this Act or any earlier Act

New Zealand unit [Repealed]

Niue International Trust Fund means the trust governed by the Deed concerning the Niue International Trust Fund dated 25 October 2006 and signed by Her Majesty the Queen in right of New Zealand and the Governments of Niue and Australia

nominal share is defined in section EW 46C (Consideration when debt forgiven within economic group) for the purposes of that section

nominated company,—

(a)

for a consolidated group, means the company described in section FM 34 (Nominated companies) for the time being nominated as agent of the group under section FM 35 (Forming consolidated group):

(b)

for an imputation group, means the company described in section FN 6 (Nominated companies) for the time being nominated as agent of the group under section FN 7 (Forming imputation groups)

nominee, in sections RE 7 and RE 8 (which relate to resident passive income paid to trustees and nominees) means a person described in section YB 21(2) (Transparency of nominees)

non-attributing active CFC is defined in section EX 21B (Non-attributing active CFCs)

non-attributing Australian CFC is defined in section EX 22 (Non-attributing Australian CFCs)

non-cash dividend means a dividend to the extent to which it does not consist of—

(a)

an unconditional payment in money; or

(b)

an unconditional credit in money to the balance of a shareholder’s current or other form of account with the company

non-complying trust is defined in section HC 12 (Non-complying trusts)

non-concessionary rate of interest, for an employment-related loan made on or before 31 March 1985, means the rate of interest declared by regulations to be the non-concessionary rate of interest for the period of 12 consecutive months, ending on 31 March, in which the loan was made

non-contingent fee means a fee that—

(a)

is for services provided for a person becoming a party to a financial arrangement; and

(b)

is payable whether or not the financial arrangement proceeds

non-creditable dividend [Repealed]

non-discretionary trust is defined in section HC 16(8) (Ordering rule for distributions from non-complying and foreign trusts) for the purposes of that section

non-executive director is defined in section CD 20(4) (Benefits of shareholder-employees or directors)

non-filing taxpayer means—

(a)

a person who meets the requirements of section 33AA(1) or 33D of the Tax Administration Act 1994 and to whom 1 of the following applies:

(i)

they do not receive an income statement for a tax year; or

(ii)

the Commissioner is not required to send them an income statement for a tax year; or

(iii)

the Commissioner is prohibited from sending them an income statement for a tax year; or

(b)

a person whose only income having a source in New Zealand is schedular payments derived in the person’s capacity as a non-resident entertainer and who chooses not to file a return for the relevant tax year; or

(c)

a person who, in the relevant tax year, derives only non-resident passive income referred to in section RF 2(3) (Non-resident passive income)

non-IFRS designated FX hedge means a forward contract for the sale or purchase of foreign currency—

(a)

for which a person uses Determination G14B: forward contracts for foreign exchange and commodities: an expected value approach under the financial arrangements rules; and

(b)

entered into by the person after the start of the first income year for which an election described in section EW 33B(2)(b) (Foreign ASAPs: designated FX hedges) applies; and

(c)

entered into by the person for the sole purpose of hedging the foreign exchange risk of a foreign ASAP for which section EW 32(2C), (2D), or (2E) (Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease) applies, and the person enters into the foreign ASAP after the start of the first income year for which an election described in section EW 33B(2)(b) applies

non-integral fee means a fee or transaction cost that, for the purposes of financial reporting under IFRSs, is not an integral part of the effective interest rate of a financial arrangement

non-Kyoto greenhouse gas unit means a unit that is—

(a)

issued by reference to the sequestration, reduction, or avoidance of emission, of human-induced greenhouse gases; and

(b)

verified to an internationally recognised standard; and

(c)

not an emissions unit

non-listed horticultural plant, in section DO 4 (Improvements to farm land) and schedule 20, part A, item 8 (Expenditure on farming, horticultural, aquacultural, and forestry improvements)—

(a)

means—

(i)

a horticultural plant, tree, vine, bush, cane, or similar plant that is cultivated on land, that is not a listed horticultural plant:

(ii)

a tree or other similar plant planted mainly for the purposes of ornamentation:

(b)

does not include a tree planted mainly for the purposes of timber production

non-participating redeemable share is defined in section CD 22(9) (Returns of capital: off-market share cancellations)

non-refundable tax credit means—

(a)

a tax credit under subpart LC (Tax credits for natural persons):

(ab)

a tax credit under section LD 4 (Tax credits for payroll donations):

(b)

a tax credit under subpart LJ (Tax credits for foreign income tax):

(c)

a tax credit under subpart LK (Tax credits relating to attributed controlled foreign company income):

(d)
[Repealed]

(e)

a tax credit under subpart LR (Tax credits for policyholder income):

(f)

an amount in a person’s branch equivalent tax account that the person chooses, under Part O (Memorandum accounts), to credit in payment of income tax:

(fb)

a tax credit under sections LS 2, LS 3(2), and LS 4(2) (which relate to multi-rate PIEs and certain of their investors), if the person having the tax credit is a natural person not having the tax credit as a beneficiary of a trust:

(g)

a tax credit under sections LS 3(3) and (4) and LS 4(3) and (4) and under section LS 1 (Tax credits for multi-rate PIEs) to the extent to which it arises under section HM 51 (Use of foreign tax credits by PIEs)

non-resident means a person who is not a New Zealand resident

non-resident aircraft operator is defined in section CW 56(3) (Non-resident aircraft operators) for the purposes of that section

non-resident company means a company that is not a New Zealand resident

non-resident contractor, in the PAYE rules, means a person who—

(a)

is not resident in New Zealand under subpart YD (Residence and source in New Zealand); and

(b)

undertakes under a contract, agreement, or arrangement (other than a contract of service or apprenticeship)—

(i)

to perform services of any kind in New Zealand:

(ii)

to supply the use, or right to use, in New Zealand any personal property or services of another person

non-resident crew member is defined in section CW 21(2) (Amounts derived by visiting crew of pleasure craft) for the purposes of that section

non-resident entertainer is defined in section CW 20(4) (Amounts derived by visiting entertainers including sportspersons) for the purposes of that section, and in the PAYE rules, means a person who—

(a)

is not resident in New Zealand under subpart YD (Residence and source in New Zealand); and

(b)

undertakes a Part F activity

(c)
[Repealed]

non-resident financial arrangement income is defined in section RF 2C(2) (Meaning of non-resident financial arrangement income) for the purposes of the NRWT rules

non-resident investment company [Repealed]

non-resident mining operator [Repealed] 

non-resident owning body, for a company and an income year, means a group consisting of 2 or more members who are each a non-resident and who each hold ownership interests in the company or have a linked trustee holding ownership interests in the company such that—

(a)

if the company, for each member of the group, owes money to the member (the member debt), or to the member’s linked trustee (the trustee debt), or to a company (the subsidiary) in which the member or a linked trustee has ownership interests (the subsidiary debt),—

(i)

the member debt for a member, expressed as a fraction of the total member debt for the company, corresponds to the ownership interests or direct ownership interests held by the member, expressed as a fraction of the ownership interests or direct ownership interests held by the members of the group:

(ii)

the requirements of subparagraph (i) would be met if each or 1 or more members of the group were treated as holding the ownership interests in the company held by the member, and by linked trustees, and were treated as being owed the member debt, the trustee debt, and an amount for subsidiary debt equal to the product of the subsidiary debt and the ownership interest held in the subsidiary:

(b)

the company is not a widely-held company and the company is funded for the income year under an arrangement between the members of the group concerning debt (the member-linked funding) under financial arrangements meeting the requirements of section FE 18(3B)(b)(i) to (iii) (Measurement of debts and assets of worldwide group) for the members:

(c)

the company has member-linked funding provided in a way recommended to, or implemented for, the members as a group by a person

non-resident passive income is defined in section RF 2 (Non-resident passive income)

non-resident person is defined in section CW 22(3) (Amounts derived by overseas experts and trainees in New Zealand by government arrangement) for the purposes of that section

non-resident seasonal worker means a non-resident person for whom immigration instructions, certified under section 22 of the Immigration Act 2009, allow them to be employed in New Zealand under—

(a)

the recognised seasonal employer (RSE) instructions; or

(b)

the foreign crew of fishing vessels instructions

non-resident taxpayer is defined in section HD 26(2) (Agency in relation to non-residents generally) for the purposes of sections HD 27 and HD 28 (which relate to employers and certain payments)

non-resident trader means a person who—

(a)

is in New Zealand; and

(b)

carries on business here without having a fixed and permanent place of business or home here

non-residents’ foreign-sourced income is defined in section BD 1(4) (Income, exempt income, excluded income, non-residents’ foreign-sourced income, and assessable income)

non-residents’ foreign-sourced income limitation is defined in section DA 2(6) (General limitations)

non-specified livestock means livestock other than bloodstock, high-priced livestock, and specified livestock

non-standard accounting year has the meaning given in section YE 1(5) (References to balance dates and years)

non-standard balance date has the meaning given in section YE 1(5) (References to balance dates and years)

non-standard income year has the meaning given in section YE 1(5) (References to balance dates and years)

non-taxable bonus issue means a bonus issue that is not a taxable bonus issue

normal retiring age is defined in section DC 15 (Some definitions) for the purposes of sections DC 12 to DC 14 (which relate to share purchase schemes)

notice is defined in section 3(1) of the Tax Administration Act 1994

notice of entitlement means a notice issued under section 80KD(2) of the Tax Administration Act 1994

notice period is defined in section FM 38(6) (Notice requirements on forming or joining consolidated group) for the purposes of that section

notified investor rate, for a multi-rate PIE and an investor, means an investor rate notified under section HM 60 (Notified investor rates) or a notified investor rate under section HM 58 (Transition of rate for certain investors)

notified foreign investor means an investor in a foreign investment PIE who—

(a)

meets the requirements of sections HM 55D(3) and (4) (Requirements for investors in foreign investment PIEs); and

(b)

notifies the PIE under section HM 55D(2) that they wish to be treated as a notified foreign investor

notify

(a)

means to give notice; and

(b)

for a mode of communication, has the meaning set out in section 14C or 14D of the Tax Administration Act 1994, as appropriate

notional offshore investment amount, for a reporting bank, is the amount referred to in section FE 22(2) (Notional offshore investment) for the purposes of section FE 21(14) (Banking group’s New Zealand net equity)

notional sale price is defined in section FA 10(2) (Treatment when lease ends: lessor acquiring asset) for the purposes of that section

novelty [Repealed]

NRFAI due date is defined in section RF 2C(7) (Meaning of non-resident financial arrangement income) for the purposes of sections RF 2C(5)(a)(ii) and RF 12F(3)(b)(ii)

NRWT means non-resident withholding tax and refers to an amount payable as income tax under the NRWT rules

NRWT rules means the provisions listed in section RF 1 (NRWT rules and their application)

NZIAS 2 means New Zealand Equivalent to International Accounting Standard 2, in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 8 means New Zealand Equivalent to International Accounting Standard 8, in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 17 means New Zealand Equivalent to International Accounting Standard 17, in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 23 means New Zealand Equivalent to International Accounting Standard 23, in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 28 means New Zealand Equivalent to International Accounting Standard 28 in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 31 means New Zealand Equivalent to International Accounting Standard 31 in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 32 means New Zealand Equivalent to International Accounting Standard 32, in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 39 means New Zealand Equivalent to International Accounting Standard 39, in effect under the Financial Reporting Act 2013 and as amended from time to time, or an equivalent standard issued in its place

NZIAS 41 is defined in section EB 6(3) (Cost) for the purposes of that section

offered or entered into in New Zealand, for an insurance contract, a reinsurance contract, and a life insurance policy, means a contract or policy offered or entered into in New Zealand, whether or not—

(a)

the contract or policy is executed in New Zealand; or

(b)

the insurer under the contract or policy—

(i)

is resident in New Zealand; or

(ii)

has a fixed establishment in New Zealand; or

(iii)

has an agent in New Zealand

offered or was offered or entered into, in sections EY 12 (Meaning of life reinsurance) and EY 48 (Non-resident life insurers with life insurance policies in New Zealand), has the same meaning as offered or entered into in New Zealand

off-market cancellation means a share cancellation that is not an on-market cancellation

offshore development [Repealed]

offshore permit area is defined in section CW 57 (Non-resident company involved in exploration and development activities) for the purposes of that section

offshore RLWT person means, for the purposes of subpart RL (Residential land withholding tax),—

(a)

a natural person, if—

(i)

the person is a New Zealand citizen who is outside New Zealand and they have not been in New Zealand within the last 3 years:

(ii)

the person holds a residence class visa granted under the Immigration Act 2009, and they are outside New Zealand and have not been in New Zealand within the last 12 months:

(iii)

the person is not a New Zealand citizen and they do not hold a residence class visa granted under the Immigration Act 2009:

(b)

a person that is a trustee of a trust, if—

(i)

more than 25% of the trustees of the trust are offshore RLWT persons:

(ii)

more than 25% of the people that have the power to appoint or remove a trustee of the trust, or to amend the trust deed, are offshore RLWT persons:

(iii)

all natural person beneficiaries and all natural person discretionary beneficiaries of the trust are offshore RLWT persons:

(iv)

all beneficiaries and all discretionary beneficiaries of the trust are offshore RLWT persons:

(v)

a beneficiary, including a discretionary beneficiary (a beneficiary), that is an offshore RLWT person has received a distribution from the trust in 1 of the last 4 years before the relevant disposal of residential land and, if the beneficiary is a natural person, the total distributions to the beneficiary for the relevant year are more than $5,000:

(vi)

the trust has disposed of residential land within 4 years before the relevant disposal of residential land and the trust has a beneficiary, including a discretionary beneficiary, that is an offshore RLWT person:

(c)

a person, if—

(i)

the person is incorporated outside New Zealand:

(ii)

the person is not a natural person and is registered outside New Zealand:

(iii)

the person is constituted under foreign law:

(iv)

the person is a company or a limited partnership and more than 25% of the company’s directors or of the limited partnership’s general partners are offshore RLWT persons:

(v)

the person is a company and more than 25% of the company’s shareholder decision-making rights are held directly or indirectly by offshore RLWT persons:

(vi)

the person is a limited partnership or a look-through company (LTC), and more than 25% of the partnership’s partnership shares or of the LTC’s effective look-through interests are held directly or indirectly by offshore RLWT persons

old company tax rate means a 30% or 33% basic tax rate applying before the 2011–12 income year

old financial arrangements rules means—

(a)

the following provisions:

(i)

sections EZ 33 to EZ 52 (which relate to the old financial arrangements rules):

(ii)

section FF 2 (Financial arrangements) of the Income Tax Act 2004, as that section was before the commencement of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999:

(iii)

sections RA 11 and RA 12 (which relate to adjustments to correct errors); and

(b)

the following provisions of the Tax Administration Act 1994:

(i)

section 60 (as in force before the enactment of section 70 of the Taxation (Accrual Rules and Other Remedial Matters) Act 1999):

old reporting standard is defined in section DB 35 (Some definitions) for the purposes of section DB 34 and subpart MX (which relate to research and development)

on-market cancellation means an acquisition by a company of a share in the company if—

(a)

the company acquires the share in a transaction occurring on a recognised exchange, through a broker or some other similar agent independent of the company; and

(b)

before the transaction, no arrangement existed between the shareholder and the company for the company to acquire the share; and

(c)

the acquisition is not a treasury stock acquisition to which section CD 25 (Treasury stock acquisitions) applies, but this paragraph does not limit the application of section CD 25(2) to (6); and

(d)

it includes an acquisition of the company’s shares on the recognised exchange that is undertaken by an associated person under an arrangement for the associate to acquire the shares in lieu of the company

onshore development [Repealed]

operating lease means, except in section EW 15I(1)(b)(iib) (Mandatory use of yield to maturity method for some arrangements), a lease that—

(a)

is not a finance lease; and

(b)

is entered into on or after 20 May 1999

operational allowance is defined in section CW 23(4) (Income for military or police service in operational area) for the purposes of that section

operational area is defined in section CW 23(4) (Income for military or police service in operational area) for the purposes of that section

operational expenditure is defined in section DU 11(4) (Meaning of mining development expenditure) for the purposes of that section and section IS 2 (Treatment of net losses resulting from certain expenditure)

option, in sections FB 10 (Continuity provisions: shares and options), GB 5 (Arrangements involving trust beneficiaries), and YC 2, YC 3, YC 5, YC 8, and YC 9 (which relate to the measurement of company ownership), and in the definitions of excluded option, market value (paragraphs (a) and (b)), market value circumstance (paragraphs (c) to (f)), pre-1991 budget security, recognised exchange, and shareholder decision-making right, includes an agreement for sale at a time when beneficial ownership of the property sold has not completely passed to the purchaser

ordering rule means the rule set out in section CD 23(1) (Ordering rule and slice rule) for calculating the amount of available subscribed capital per share

original share means a share in a company that is described as the original share in the definition of returning share transfer

other amortisation provision means a provision of this Act that has similar intent and application to sections EE 1 (What this subpart does), EZ 7 (Acquiring patent rights before 1 April 1993), and EZ 8 (Premium paid on land leased before 1 April 1993)

out-of-town secondment is defined in section CW 16B(5) (Accommodation expenditure: out-of-town secondments and projects)

output tax is defined in section 2 of the Goods and Services Tax Act 1985

outstanding balance,—

(a)

in section FA 10 (Treatment when lease ends: lessor acquiring asset), includes principal, interest, and penalties that are owing by the lessee to the lessor on the date that the lease is terminated

(b)

is defined in section FZ 2(9) (Effect of specified lease on lessor and lessee) for the purposes of sections FZ 2 and FZ 3 (which relate to specified leases)

outstanding claims reserve means—

(a)

for an insurer who uses IFRS 4, the amount of the insurer’s outstanding claims liability for general insurance contracts, excluding contracts having premiums to which section CR 3 (Income of non-resident general insurer) applies, as that liability is measured under Appendix D, paragraphs 5.1 to 5.2.12 of IFRS 4 for the insurer’s financial statements less the amount of reinsurance and non-reinsurance recoveries receivable, as measured for the financial statements:

(b)

for a life insurer, the amount that would be the life insurer’s outstanding claims reserve under section EY 24(3) and (4) (Outstanding claims reserving amount: non-participation policies not annuities) for general insurance contracts, excluding contracts having premiums to which section CR 3 applies, if section EY 24(3) and (4) were modified so as to apply to general insurance contracts and reinsurance contracts, instead of to life insurance policies and reinsurance contracts

overseas eligible expenditure [Repealed]

overseas pension is defined in section CW 28(2) (Pensions) for the purposes of that section

overtime is defined in section CW 17C(4) (Payments for overtime meals and certain other allowances) for the purposes of that section

own,—

(a)

for land, means to have an estate or interest in the land, alone or jointly or in common with any other person:

(b)

for the ownership of depreciable property, is defined in sections EE 2 to EE 5 (which relate to depreciation)

ownership interest, in a company,—

(a)

means—

(i)

a voting interest in the company determined by applying section YC 4(2) (Look-through rule for corporate shareholders):

(ii)

a market value interest in the company determined by applying section YC 4(5):

(b)

for the purposes of subpart FE (Interest apportionment on thin capitalisation), is measured under sections FE 38 to FE 41 (which provide for the measurement of ownership interests in companies)

owner’s associate is defined in section HB 11(12) (Limitation on deductions by persons with interests in look-through companies) for the purposes of that section

owner’s interests means the relevant interests in rights and obligations and other property, status, and things that a person who has an effective look-through interest for a look-through company has as a result of applying section HB 1 (Look-through companies are transparent) or otherwise

paid work [Repealed] 

parental entitlement period means the period of time described in section MD 11(1)(b)(i) (Entitlement to parental tax credit)

parental tax credit is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

Part F activity is defined in schedule 4, part F, clause 7 (Standard rates of tax for schedular payments)

partial reinsurance is defined in section EY 12(3) (Meaning of life reinsurance)

participating share is defined in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section

partner, in relation to a partnership,—

(a)

means a person who is a member of the partnership:

(b)

includes—

(i)

a limited partner of a limited partnership:

(ii)

a general partner of a limited partnership:

(iii)

a joint venturer or a co-owner, if they make the relevant choice to be treated as partnership

partner’s associate is defined in section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section

partner’s interests means the relevant interests in rights and obligations and other property, status, and things that a partner has as a result of applying section HG 2 (Partnerships are transparent)

partnership means—

(a)

a group of 2 or more persons who have, between themselves, the relationship described in section 4(1) of the Partnership Act 1908:

(b)

a joint venture, if the joint venturers all choose to be treated as a partnership for the purposes of this Act and the Tax Administration Act 1994:

(c)

co-owners of property, other than persons who are co-owners only because they are shareholders of the same company, or settlors, trustees, or beneficiaries of the same trust, if the co-owners all choose to be treated as a partnership for the purposes of this Act and the Tax Administration Act 1994:

(d)

a limited partnership

partnership share means, for a particular right, obligation, or other property, status, or thing, the share that a partner has in the partnership

patent right means the right to do or authorise anything that would, but for the right, be an infringement of a patent

pay,—

(a)

for an amount and a person, includes—

(i)

to distribute the amount to them:

(ii)

to credit them for the amount:

(iii)

to deal with the amount in their interest or on their behalf, in some other way:

(b)

for a dividend that is a bonus issue, means to issue shares or to give credit for the shares comprising the bonus issue:

(bb)

is defined in section LD 4(7) (Tax credits for payroll donations) for the purposes of that section and section LD 8(1) (Meaning and ranking of payroll donation) and for section 24Q of the Tax Administration Act 1994:

(c)

is defined in section RD 51(6) (Calculation of all-inclusive pay) for the purposes of that section:

(d)

has the meaning set out in section RF 12E (When non-resident financial arrangement income treated as paid) for the purposes of the NRWT rules

pay period, for an employee receiving regular payments of salary or wages, means the period for which any such payment is payable

PAYE means pay-as-you-earn and refers to an amount payable as income tax under the PAYE rules

PAYE income payment is defined in section RD 3 (PAYE income payments)

PAYE income payment form, for an employer, means a form authorised by the Commissioner that shows—

(a)

the period to which the form relates; and

(b)

the name of the employer; and

(c)

the tax file number of the employer; and

(d)

the total amounts of tax withheld and paid; and

(e)

the total amount of child support payments; and

(f)

the total amount of salary or wage deductions made under the Student Loan Scheme Act 2011; and

(g)

the total KiwiSaver contribution deductions made under the KiwiSaver Act 2006, Part 3, subpart 1; and

(h)

the amount of an employer’s superannuation cash contribution and the amount of ESCT withheld and paid; and

(i)

the amount of an employer’s superannuation cash contribution and the amount of tax withheld and paid, other than that described in paragraph (h); and

(j)

other similar information that the Commissioner may require

PAYE income payment form period means the payment period for which an employer must provide a PAYE income payment form under section RD 22(2) (Returns for amounts of tax paid to Commissioner)

PAYE intermediary, for an employer, means—

(a)

a person who—

(i)

is accredited as a PAYE intermediary by the Commissioner under section 15D or 15G of the Tax Administration Act 1994; and

(ii)

has entered an agreement with the employer, applying to employees of the employer, that has been approved by the Commissioner under section 15J of that Act; and

(iii)

has entered into agreements that have been approved by the Commissioner under section 15J of that Act with not less than 10 employers:

(b)

a person who—

(i)

no longer meets the requirements of paragraph (a); and

(ii)

has responsibilities under section RP 2(3) (PAYE intermediaries)

PAYE rules means the provisions listed in section RD 2(1) (PAYE rules and their application)

payer, in the RWT rules, means a person who makes a payment of resident passive income

payment relating to incapacity for work is defined in section CW 34(2) (Compensation payments) for the purposes of that section

payroll donation is defined in section LD 8 (Meaning and ranking of payroll donation)

PCA [Repealed]

PCA company [Repealed]

PCA person [Repealed]

penalties and interest is defined in section HD 15(9) (Asset stripping of companies) for the purposes of that section

pension is defined in section CF 1(2) (Benefits, pensions, compensation, and government grants) for the purposes of that section

period of continuous work

(a)

is defined in section CW 16B(5) (Accommodation expenditure: out-of-town secondments and projects); and

(b)

is given an extended meaning in section CW 16D(4) (Accommodation expenditure: conferences and overnight stays) for the purposes of that section

period of restriction is defined in section DC 15(2) to (4) (Some definitions) for the purposes of sections DC 13 to DC 15 (which relate to share purchase schemes)

permit is defined in section 2 of the Crown Minerals Act 1991

permit area means an area of land, and may include more than 1 area, of, as applicable,—

(a)

a petroleum permit:

(b)

a mining permit or an existing privilege referred to in paragraphs (a) and (b) of the definition of existing privilege in section 2(1) of the Crown Minerals Act 1991

permit-specific asset is defined in section DZ 5(6) (Farm-out arrangements for petroleum mining before 16 December 1991) for the purposes of that section

permitted withdrawal means a withdrawal permitted under the KiwiSaver scheme rules as defined in section 4 of the KiwiSaver Act 2006 or under the complying fund rules

person

(a)

is defined in section EH 3(2) (Persons to whom main income equalisation scheme applies) for the purposes of the main income equalisation scheme:

(b)

is defined in section EH 37(2) (Persons to whom adverse event income equalisation scheme applies) for the purposes of the adverse event income equalisation scheme:

(c)

is defined in section EH 63(2) (Persons to whom thinning operations income equalisation scheme applies) for the purposes of the thinning operations income equalisation scheme

personal injury by accident [Repealed]

personal property, in sections CB 4 (Personal property acquired for purpose of disposal) and CB 5 (Business of dealing in personal property) does not include land

personal property lease asset

(a)

means any personal property subject to a lease; and

(b)

does not include any livestock or bloodstock

personal property lease payment means a payment made by a lessee to a lessor, in money or money’s worth, in relation to, or in consideration for, a personal property lease asset

personal service rehabilitation payment, for a person, means an amount paid for the person’s benefit—

(a)

under section 81(3), 372, or 374 of the Accident Compensation Act 2001; and

(b)

by the Accident Compensation Corporation or an employer that is an accredited employer as defined in section 181 of that Act; and

(c)

in providing to a person—

(i)

a key aspect of rehabilitation referred to in section 81(1)(b), (c), (e), or (g) (relating to attendant care, child care, home help, and training for independence) of that Act:

(ii)

a key aspect of rehabilitation referred to in section 81(1)(h) (relating to transport for independence) of that Act to the extent provided by paragraph (a)(i) of the definition of transport for independence in schedule 1, clause 12 of that Act:

(iii)

similar rehabilitation referred to in an earlier Act corresponding to that Act

petroleum is defined in section 2 of the Crown Minerals Act 1991

petroleum development expenditure

(a)

means expenditure incurred by a petroleum miner that—

(i)

directly concerns a permit area; and

(ii)

is for acquiring, constructing, or planning petroleum mining assets; and

(b)

does not include—

(i)

residual expenditure; or

(ii)

petroleum exploration expenditure; or

(iii)

other expenditure allowed as a deduction under any provision of this Act, other than a provision in subpart DT (Petroleum mining expenditure) or DZ (Terminating provisions), and allocated to the income year in which the expenditure is incurred

petroleum exploration expenditure

(a)

means—

(i)

exploratory well expenditure; and

(ii)

prospecting expenditure; and

(iii)

expenditure to acquire an existing privilege that is a prospecting licence granted under Part 1 of the Petroleum Act 1937, a prospecting permit for petroleum, or an exploration permit for petroleum; and

(b)

does not include—

(i)

residual expenditure; or

(ii)

expenditure that is required by section DT 6 (Expenditure on petroleum mining assets) to be treated as petroleum development expenditure

petroleum miner is defined in section CT 6 (Meaning of petroleum miner)

petroleum mining asset is defined in section CT 7 (Meaning of petroleum mining asset)

petroleum mining company means a company to which sections IZ 2 and IZ 3 (which relate to companies engaged in exploring for, searching for, or mining petroleum) apply

petroleum mining development is defined in section EJ 20 (Meaning of petroleum mining development) for the purposes of sections EJ 12 and EJ 12B (which relate to petroleum development expenditure)

petroleum mining development expenditure is defined in section DZ 3(4) (Petroleum mining: development expenditure from 1 October 1990 to 15 December 1991) for the purposes of that section

petroleum mining operations is defined in section CT 6B (Meaning of petroleum mining operations)

petroleum mining permit is defined in section 2 of the Crown Minerals Act 1991

petroleum permit means—

(a)

an exploration permit for petroleum:

(b)

a prospecting permit for petroleum:

(c)

a petroleum mining permit:

(d)

an existing privilege that is a prospecting licence or mining licence granted under Part 1 of the Petroleum Act 1937

petroleum-related depreciable property is defined in section EE 67 (Other definitions)

PFSI forestry business means the forestry activities carried on by a person who, as landowner, is subject to obligations under a forest sink covenant referred to in section 67X of the Forests Act 1949 in relation to the land specified in the covenant

PFSI forestry income, for a person, means the income from a PFSI forestry business—

(a)

relating to a forest sink covenant entered into by the person; and

(b)

derived by the person from—

(i)

receiving an emissions unit under the covenant; or

(ii)

entering into a transaction in relation to an emissions unit received under the covenant

physical cost of production is defined in section DZ 11(3) (Film reimbursement scheme on or before 30 June 2001) for the purposes of that section

PIE means a portfolio investment entity

PIE rules means—

(a)

the following provisions:

(i)

section BC 7(4) (Income tax liability of person with schedular income):

(ii)

section CB 26 (Disposal of certain shares by portfolio investment entities):

(iii)

section CP 1 (Attributed income of investors in multi-rate PIEs):

(iv)

sections CX 55 to CX 57 (which relate to excluded income of investors in PIEs):

(v)

sections DB 53 to DB 54B (which relate to losses of certain investors in PIEs):

(vb)

section EX 20B(3)(o) (Attributable CFC amount):

(vi)

subpart HM (Portfolio investment entities):

(vii)

section IA 7(10) (Restrictions relating to ring-fenced tax losses):

(viii)

IC 3(2B) to (2D) (Common ownership: group of companies):

(ix)

subpart LS (Tax credits for multi-rate PIEs and investors):

(x)

section OB 9B (ICA attributed PIE income with imputation credit):

(b)

sections 28B, 28D, 31B, 31C, 33(1C), 38(1B), 57B, and 61(1C) of the Tax Administration Act 1994

plant does not include an item that is structural in relation to a building

plant variety rights means proprietary rights granted for a plant variety under the Plant Variety Rights Act 1987 or similar rights given similar protection under the laws of a country or territory other than New Zealand

planting is defined in section DO 8 (Meaning of planting and plot) for the purposes of sections DO 5 to DO 8 (which relate to horticultural plants)

pleasure craft is defined in section CW 21(2) (Amounts derived by visiting crew of pleasure craft) for the purposes of that section

plot is defined in section DO 8 (Meaning of planting and plot) for the purposes of sections DO 5 to DO 8 (which relate to horticultural plants)

policy liabilities is defined in section EY 29(8) (Shareholder base other profit: profit participation policies that are new business) for the purposes of section EY 29

policyholder base means, for a life insurer, the base for policyholder base income and allowable deductions and to which income of a particular source or nature, and tax credits received are apportioned under section EY 4 (Apportionment of income of particular source or nature, and of tax credits)

policyholder base allowable deductions means policyholder base allowable deductions described in section EY 2(2) (Policyholder base)

policyholder base income means policyholder base income described in section EY 2(1) (Policyholder base)

policyholder base income tax liability [Repealed] 

policyholder credit [Repealed] 

policyholder credit account [Repealed] 

policyholder debit [Repealed] 

policyholder FDP ratio [Repealed] 

policyholder income [Repealed] 

policyholder income formula [Repealed] 

policyholder net loss [Repealed] 

policyholder unvested liabilities means benefits that are allocated to policyholders of profit participation policies but are not vested in a specific policyholder

pool is defined in section EE 67 (Other definitions)

pool method is defined in section EE 67 (Other definitions)

poolable property is defined in section EE 66 (Meaning of poolable property)

portable New Zealand superannuation means New Zealand superannuation paid or payable overseas under—

(a)

section 26(2)(a) of the New Zealand Superannuation and Retirement Income Act 2001, or under section 26(2)(b) where the superannuitant is residing in a country to which section 26(1)(a) of that Act applies; or

(b)

section 31 of the New Zealand Superannuation and Retirement Income Act 2001; or

(c)

section 19 of the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990

portable veteran’s pension means a veteran’s pension paid or payable overseas under—

(a)

section 182(1)(a) of the Veterans’ Support Act 2014, or under section 182(1)(b) where the pensioner is residing in a country to which section 181(a) of that Act applies; or

(b)

section 191 of the Veterans’ Support Act 2014; or

(c)

section 19 of the Social Welfare (Reciprocity Agreements, and New Zealand Artificial Limb Service) Act 1990

portfolio allocation period [Repealed] 

portfolio calculation period [Repealed] 

portfolio class fraction [Repealed] 

portfolio class investment value [Repealed] 

portfolio class net income [Repealed] 

portfolio class net loss [Repealed] 

portfolio class taxable income [Repealed] 

portfolio class taxable loss [Repealed] 

portfolio defined benefit fund [Repealed] 

portfolio entity formation loss [Repealed] 

portfolio entity investment [Repealed] 

portfolio entity tax liability [Repealed] 

portfolio investment means an investment of an entity in an item of property of a type to which section HM 11 (Investment types) refers

portfolio investment entity means—

(a)

a multi-rate PIE:

(b)

a listed PIE:

(c)

a benefit fund PIE:

(d)

a life fund PIE:

(e)

a foreign investment PIE that is either a foreign investment zero-rate PIE or a foreign investment variable-rate PIE

portfolio investment-linked life fund means a separate identifiable fund forming part of a life insurer, that—

(a)

holds investments subject to life insurance policies under which benefits are directly linked to the value of the investments held in the fund; and

(b)

has become a portfolio investment entity under section HL 13 (Becoming portfolio investment entity); and

(c)

has not ceased to be a portfolio investment entity under section HL 15 (Ceasing to be portfolio investment entity)

portfolio investor allocated income [Repealed] 

portfolio investor allocated loss [Repealed] 

portfolio investor class [Repealed] 

portfolio investor exit period [Repealed] 

portfolio investor interest [Repealed] 

portfolio investor interest fraction [Repealed] 

portfolio investor proxy [Repealed] 

portfolio investor rate [Repealed] 

portfolio land company [Repealed] 

portfolio listed company [Repealed] 

portfolio tax rate entity [Repealed] 

possession includes a use that is in fact or effect substantially exclusive

post-1989 forest land means post-1989 forest land as defined in section 4(1) of the Climate Change Response Act 2002

post-1989 forest land emissions unit, for a person, means an emissions unit transferred under section 64 of the Climate Change Response Act 2002 for growing trees on post-1989 forest land—

(a)

to the person and held continuously by the person from the transfer:

(b)

to another person (the recipient), who at the time of the transfer is a party to a forestry rights agreement as defined in the Forestry Rights Registration Act 1983 with the person, and—

(i)

transferred by the recipient to the person, under a provision of the forestry rights agreement relating to the allocation of income or emissions units between the recipient and the person; and

(ii)

held continuously by the person from the transfer by the recipient

post-1989 forest land unit [Repealed] 

post-treaty tax rate means the rate of tax, after taking into account the overriding effect of a relevant double tax agreement, if there is one, as provided by section BH 1 (Double tax agreements)

pre-1983 investments is defined in section HR 3(8) (Definitions for section HR 2: group investment funds) for the purposes of section HR 2 (Group investment funds)

pre-1990 forest land means pre-1990 forest land as defined in section 4(1) of the Climate Change Response Act 2002

pre-1990 forest land emissions unit, for a person, means an emissions unit transferred under Part 4, subpart 2 of the Climate Change Response Act 2002 in relation to pre-1990 forest land—

(a)

to the person and held continuously by the person from the transfer:

(b)

to another person (the appointee), as a person appointed under section 73 of that Act or as a person representing iwi that are claimants under a Treaty of Waitangi settlement, and—

(i)

transferred by the appointee to the person, as a person (the claimant) who at the time of the transfer to the appointee is a claimant under a Treaty of Waitangi settlement involving the pre-1990 forest land or as an agent for the claimant; and

(ii)

held continuously by the person, as the agent or the claimant, from the transfer by the appointee:

(c)

to another person (the recipient), who at the time of the transfer is a party to a forestry rights agreement as defined in the Forestry Rights Registration Act 1983 with the person, and—

(i)

transferred by the recipient to the person, under a provision of the forestry rights agreement relating to the allocation of income or emissions units between the recipient and the person; and

(ii)

held continuously by the person from the transfer by the recipient

pre-1990 forest land unit [Repealed] 

pre-1991 budget security means a fixed-rate share, or a debenture to which section FA 2 (Recharacterisation of certain debentures) applies, that—

(a)

was itself issued by the company before 8.00 pm New Zealand Standard Time on 30 July 1991 (the specified time), or was issued under a binding contract entered into before the specified time no term of which is altered at any time after the specified time; and

(b)

is not a share or debenture any term of which is altered at any time after the specified time, whether under a provision for roll-over or extension or under an option held at the specified time by the shareholder or debenture holder or the company or both or by any other person or otherwise, except when the term is altered under a binding contract entered into before the specified time no term of which is altered at any time after the specified time

pre-imputation income year means an income year that started before the 1987–88 income year

premium,—

(a)

for life insurance,—

(i)

means any consideration, however described, payable under a life insurance policy to a life insurer; and

(ii)

does not include interest on an unpaid premium:

(iii)

does not include consideration received by a life insurer for the transfer of life insurance business:

(b)

in sections CR 3, HD 16, HD 17, and YD 8 (which relate to non-resident general insurers), for general insurance or guarantee against risk, means an amount payable in relation to the contract of insurance or guarantee, as applicable, entered into by the insured person:

(c)

in section EZ 8 (Premium paid on land leased before 1 April 1993) and for the purposes of section DZ 9 (Premium paid on land leased before 1 April 1993),—

(i)

includes a payment in the nature of a fine, a payment for goodwill attaching to the land, and a payment in consideration of the grant, transfer, or renewal of the lease; and

(ii)

does not include rent

premium loading [Repealed] 

premium loading formula [Repealed] 

premium payback amount means an amount of life risk component premium refunded in accordance with the terms and conditions of the relevant life insurance policy or the discretion of the life insurer

prepaid expenditure means expenditure to which section EA 3 (Prepayments) applies

prescribed means—

(a)

prescribed by regulations under this Act; or

(b)

prescribed by the Commissioner

prescribed amount [Repealed] 

prescribed interest is defined in section RD 34(3) (Employment-related loans: value using prescribed interest rates) for the purposes of that section

prescribed investor rate, for a multi-rate PIE and an investor, means an applicable tax rate set out in schedule 6, tables 1 and 1B (Prescribed rates: PIE investments and retirement scheme contributions), modified as necessary by section HM 56(2) (Prescribed investor rates: schedular rates) or HM 57B (Prescribed investor rates for new residents)

prescribed period [Repealed] 

prescribed proportion [Repealed] 

prescribed rate of interest means the rate of interest declared by regulations made under section RA 21(3) (Regulations) to be the rate applying to employment-related loans

present value (gross) means—

(a)

a present value calculated using the risk-free rate of return as the discount rate, gross of tax; but

(b)

face value, if the whole discount period is less than a year

present value (net) means—

(a)

a present value calculated using the risk-free rate of return as the discount rate, net of tax; but

(b)

face value, if the whole discount period is less than a year

price

(a)

is defined in section RD 40(3) (Goods) for the purposes of that section:

(b)

is defined in section RD 41(4) (Services) for the purposes of that section:

(c)

in sections RD 42 and RD 43 (which relate to goods provided with staff discount), for a registered person who may claim input tax for goods provided to an employee, means the GST-inclusive price

primary producer co-operative company is defined in section CZ 7(4) (Primary producer co-operative companies: 1987–88 income year) for the purposes of that section

principal caregiver is defined in section MC 10 (Principal caregiver) for the purposes of the child tax credit, WFF tax credit, in-work tax credit, and parental tax credit

principal settlor is defined in section CB 16A (Main home exclusion for disposal within 2 years) for the purposes of that section

private domestic worker means a person employed by any other person if—

(a)

the employer is the occupier, or 1 of the occupiers, of a dwellinghouse or other premises used exclusively for residential purposes; and

(b)

the employment is for the performance of work in or about the dwellinghouse or premises or the garden or grounds belonging to the dwellinghouse or premises; and

(c)

the employment is not for a business carried on by the employer or an occupation or calling of the employer; and

(d)

the employment is not regular full-time employment

private limitation is defined in section DA 2(2) (General limitations)

private or domestic agreement for the sale and purchase of property is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

private use

(a)

for a motor vehicle, is defined in section CX 36 (Meaning of private use):

(b)

for the purposes of subpart DG (Expenditure related to use of certain assets), is defined in section DG 4 (Meaning of private use for this subpart)

pro rata cancellation, for shares of the same class in a company, means the cancellation of—

(a)

all the shares in the class; or

(b)

part only of the shares in the class if the cancellation does not alter any person’s voting interest, or market value interest, if a market value circumstance exists at the time in relation to the company, in the company, determined as if no other class of shares existed; or

(c)

part only of the shares in the class if the cancellation results from an offer from the company to all shareholders in the class and the resulting cancellation would have met paragraph (b) if each shareholder who received the offer accepted it in full

produce transactions,—

(a)

in section CD 33 (Payments corresponding to notional distributions of producer boards and co-operative companies), subpart HE (Mutual associations), and sections OB 73 and OB 74 (which relate to imputation credit accounts of statutory producer boards), and in the definition of member (paragraph (a)), means transactions that—

(i)

are between a statutory producer board and its members; and

(ii)

involve the acceptance by the board from its members, in terms of the board’s primary statutory functions, of produce that is trading stock or goods that are trading stock:

(b)

in sections CD 33, OB 78, and OB 79 (which relate to imputation credit accounts of co-operative companies), and in the definition of shareholder (paragraph (c)), means transactions that—

(i)

are between a co-operative company and its shareholders; and

(ii)

involve the acceptance of produce that is trading stock or goods that are trading stock; and

(iii)

are purchases or other acquisitions of the produce or goods by the company from its shareholders, if a principal activity of the company involves the acceptance of such produce or goods from its shareholders:

(c)

in sections CD 33, OB 78, OB 79, and OB 82, and in the definition of shareholder (paragraph (c)), also means transactions that—

(i)

are between a co-operative company and its shareholders; and

(ii)

involve the supply of produce that is trading stock or goods that are trading stock; and

(iii)

are sales or other disposals of the produce or goods by the company to its shareholders, if a principal activity of the company involves the supply of such produce or goods to its shareholders

producer board has the same meaning as statutory producer board

profit is defined in section DB 28(6) (Amount from land affected by change and not already in income) for the purposes of that section

profit distribution plan

(a)

means a scheme comprising 1 or more steps undertaken by a company by which it—

(i)

notifies some or all of its shareholders that shares are to be issued on a particular date; and

(ii)

gives the notified shareholders an option to have some or all of the shares issued to them repurchased by the company:

(b)

does not include an issue of shares under a share purchase agreement or a share purchase scheme

profit participation policy

(a)

means a class of life insurance policy—

(i)

that has an asset base; and

(ii)

in which each policy provides that the policyholder’s entitlement is to an actuarially determined share of the profits of the life insurer’s business, relating to the class, that are available to the life insurer for allotment to shareholders or policyholders; and

(iii)

in which each policy provides for the transfer from the available profits, for the benefit of the life insurer’s shareholders, of an amount equal to a proportion, calculated using a formula, of the policyholder’s entitlement to the profits referred to in subparagraph (ii):

(b)

includes a class of life insurance policy that substantially meets the requirements of paragraph (a) and that has a guarantee by the life insurer that capital invested will be returned or that a minimum return on capital will be paid, if—

(i)

the life insurer has irrevocably chosen that the class be treated as a profit participation policy; and

(ii)

the Commissioner receives a notice of the election before the start of the first income year to which it relates:

(c)

does not include a life insurance policy that covers life risk and is—

(i)

life reinsurance:

(ii)

a multiple life policy, as defined in section EY 30(14) (Transitional adjustments: life risk):

(iii)

a workplace group policy, as defined in section EY 30(15)

profit-related debenture is defined in section FA 2(4) (Recharacterisation of certain debentures)

profit-sharing arrangement means an arrangement under which—

(a)

a person (person A) makes specified livestock available, without specifying a fee for doing so, to another person (person B) who carries on a business in which the livestock are used; and

(b)

any return or compensation that person A receives for making the livestock available depends on the profits of the business; and

(c)

person A participates in the profits and losses of the business; and

(d)

if a partnership between person A and person B arises, person A is bound by the requirements of the Partnership Act 1908 for third parties

project of limited duration is defined in section CW 16B(5) (Accommodation expenditure: out-of-town secondments and projects)

projected transactions shareholding is defined in section CD 34B (Distributions to members of co-operative companies)

property,—

(a)

in subpart EE (Depreciation), includes consents granted in or after the 1996–97 tax year under the Resource Management Act 1991:

(ab)

in subpart FB (Transfers of relationship property), is defined in section FB 1B(b) (Meaning of settlement of relationship property and property):

(ac)

in subpart FC (Distribution, transmission, and gifts of property), is defined in section FC 1(2) (Disposals to which this subpart applies):

(b)

in the financial arrangements rules, and in the definitions of agreement for the sale and purchase, forward contract, right, short-term agreement for sale and purchase, short-term option, and specified option does not include a financial arrangement or foreign exchange:

(c)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

proportional debt ratio is defined in section EW 46C (Consideration when debt forgiven within economic group) for the purposes of that section

proportional ownership ratio is defined in section EW 46C (Consideration when debt forgiven within economic group) for the purposes of that section

proportional-stapling company means a company if—

(a)

each share in the company that is not a stapled debt security and not a fixed-rate share (a participating share) is stapled to a stapled debt security; and

(b)

for each participating share in the company, the amount payable for the issue of its stapled debt security is the same proportion of the available subscribed capital calculated under the slice rule of the participating share as it is for each other participating share

prospecting expenditure

(a)

means expenditure to identify land likely to contain exploitable petroleum deposits or occurrences; and

(b)

includes prospecting for petroleum by electrical, geochemical, gravimetric, magnetic, radioactive, seismic, or other geological methods; and

(c)

does not include residual expenditure

prospecting permit is defined in section 2 of the Crown Minerals Act 1991

protected family support [Repealed] 

protected family tax credit, for a person, means an amount of family scheme income derived in the way set out in section MD 14 (Person receiving protected family tax credit)

protective right is defined in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section

provisional rate is defined in section EE 67 (Other definitions)

provisional tax means an amount payable as provisional tax under the provisional tax rules

provisional tax rules means the provisions listed in section RC 2 (Provisional tax rules and their application)

PSR period is defined in section EY 23 (Reserving amounts for life insurers: non-participation policies)

public authority

(a)

means every department or instrument of the Executive Government of New Zealand; and

(b)

includes the Public Trust and the Maori Trustee; and

(c)

includes the Christmas Island Phosphate Commission, incorporated in Australia by the Christmas Island Agreement Act 1949 of the Parliament of Australia and continued under the Christmas Island Agreement Act 1958; and

(d)

is further defined in section CW 38(6) (Public authorities) for the purposes of that section; and

(e)

does not include a mixed-ownership enterprise

public entertainer is defined in section CW 19(3) (Amounts derived during short-term visits) for the purposes of that section

public official [Repealed] 

public unit trust means—

(a)

a unit trust that has 100 or more unit holders, treating all associated persons as 1 person, who are—

(i)

unit trust managers who hold units in the ordinary course of their activities in relation to the unit trust; or

(ii)

persons with an interest of 25% or less in the unit trust, treating all associated persons as 1 person; or

(iii)

persons with an interest of 25% or more in the unit trust, treating all associated persons as 1 person, if their interest is 25% or more because of unusual or temporary circumstances, such as the recent establishment or forthcoming termination of the unit trust, and if the unit trust would meet the requirements of any of paragraphs (b), (c), (d), and (e); or

(b)

a unit trust whose unit holders are any 1 or more of the following:

(i)

a public unit trust as described in paragraph (a) or this paragraph:

(ii)

a group investment fund:

(iii)

a life insurance company:

(iv)

a superannuation fund:

(v)

a unit trust manager, trustee, or person nominated by the manager or the trustee who holds units in the ordinary course of management activities in relation to the unit trust:

(vi)

a person with an interest of 5% or less in the unit trust, treating all associated persons as 1 person:

(vii)

a person with an interest of 5% or more in the unit trust, treating all associated persons as 1 person, if their interest is 5% or more because of unusual or temporary circumstances, such as the recent establishment or forthcoming termination of the unit trust, and if the unit trust would meet the requirements of any of paragraphs (a), (c), (d), and (e); or

(c)

a unit trust that has less than 100 unit holders if it could reasonably be regarded as a widely-held investment vehicle for direct investment by members of the public despite its number of unit holders or investors; or

(d)

a unit trust that has less than 100 unit holders if it has less than 100 unit holders or investors because of unusual or temporary circumstances, such as its recent establishment or forthcoming termination, and if it would otherwise meet the requirements of any of paragraphs (a), (b), (c), and (e); or

(e)

a unit trust that has less than 100 unit holders if it could reasonably be regarded as a vehicle mainly for investment by widely-held vehicles for direct investment that are 1 or more of the following:

(i)

unit trusts; or

(ii)

group investment funds; or

(iii)

life insurance companies; or

(iv)

superannuation funds

QC continuity period is defined in section HA 6(5) (Corporate requirements) for the purposes of that section

QCP transitional process is defined in section HZ 4B(7) (Qualifying companies: transition into partnership)

QCST transitional process is defined in section HZ 4D(4) (Qualifying companies: transition into sole traderships)

qualifying asset is defined in section EZ 28 (Meaning of qualifying asset)

qualifying capital value is defined in section EZ 26 (Meaning of qualifying capital value)

qualifying company is defined in section HA 2 (Meaning of qualifying company)

qualifying company election tax means the amount described in section HA 40 (Liability for qualifying company election tax)

qualifying debenture means—

(a)

a debenture issued by a forestry company for an unpaid purchase amount for land acquired by the forestry company from the Crown or the Maori owners or a holding company of the forestry company; or

(b)

a debenture issued by a forestry company for capitalised interest derived from a debenture described in paragraph (a); or

(c)

a debenture issued by a forestry company for money lent to the forestry company by a holding company for any of the following purposes:

(i)

financing expenditure by the forestry company on planting or maintaining trees; or

(ii)

meeting administrative overheads, rates, rent, insurance premiums, or other expenses of the same kind; or

(iii)

paying interest on money borrowed for the purposes of the forestry business and employed as capital in the business; or

(d)

a debenture issued by a forestry company for capitalised interest derived from a debenture described in paragraph (c); or

(e)

a debenture issued by a forestry company for capitalised interest derived from a debenture described in paragraph (b) or (d); or

(f)

a debenture issued by a Maori investment company to a shareholder of the company or a trustee for a shareholder

qualifying electoral candidate means a qualifying electoral candidate as defined in section 5 of the Members of Parliament (Remuneration and Services) Act 2013

qualifying event [Repealed] 

qualifying foreign equity investor is defined in section CW 12(4) (Proceeds of share disposal by qualifying foreign equity investor) for the purposes of that section

qualifying improvement is defined in section EZ 27 (Meaning of qualifying improvement)

qualifying resident foreign trustee is defined in section 3(1) of the Tax Administration Act 1994

qualifying share premium is defined in section CD 43(28) (Available subscribed capital (ASC) amount) for the purposes of that section

quarantined amount means the amount described in section LK 1(3) (Tax credits relating to attributed CFC income) for the purposes of Part L (Tax credits and other credits)

quarter means a period of 3 consecutive calendar months that ends with the last day of March, June, September, or December

quarterly FDR hedging ratio is defined in section EM 8 (Some definitions) for the purposes of subpart EM (Hedging of currency movements in Australian non-attributing shares and attributing FDR method interests)

R&D expenditure, for a person, means expenditure incurred by the person for goods and services to the extent to which the goods and services relate to research or development and the intellectual property and know-how resulting from the research or development vests in the person, solely or jointly, but does not include—

(a)

expenditure for goods and services to the extent to which they relate to an activity described in schedule 22 (Proscribed R&D activities):

(b)

expenditure for goods and services used by the person to—

(i)

provide a service of research or development to a person who is in the business of providing services of research or development:

(ii)

further another person’s research or development activities:

(c)

expenditure for which no deduction is available for the income year:

(d)

expenditure for or under a financial arrangement:

(e)

expenditure for the acquisition or transfer of intangible property, core technology, intellectual property, or know-how

R&D group means a group of entities that meets the requirements of section MX 1(2) (When this subpart applies)

R&D loss tax credit means a credit of tax under subpart MX (Tax credits for R&D tax losses)

R&D material, for a person, means goods or services provided to the person, to the extent to which the goods and services are provided to the person as part of a service of research or development and the intellectual property and know-how resulting from the research or development will vest in the person, solely or jointly, but does not include goods and services to the extent to which they—

(a)

relate to activity described in schedule 22 (Proscribed R&D activities):

(b)

are used by the person to—

(i)

provide a service of research or development:

(ii)

further another person’s research or development activities

R&D repayment tax means a tax liability payable under section MX 7 (Reinstatement of R&D tax losses and R&D repayment tax)

Railways assets is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure)

Railways assets and liabilities is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure)

Railways liabilities is defined in section EZ 68 (Definitions) for the purposes of sections EZ 64 to EZ 67 (which relate to New Zealand Railways Corporation restructure)

Railways vesting is defined in section EZ 68 (Definitions) for the purposes of sections CW 65, EZ 64 to EZ 67, and YC 18C (which relate to New Zealand Railways Corporation restructure)

ratio instalment date means an instalment date of a person who uses a GST ratio for a tax year, and is an instalment date for a payment in relation to which no amount of use of money interest or penalties apply other than a late payment penalty or a shortfall penalty

real property includes a permit as defined in the Crown Minerals Act 1991

rebuilding is defined in section CZ 29(5) (Accommodation expenditure: Canterbury earthquake relief) for the purposes of that section

recognised exchange, at any time,—

(a)

means a recognised exchange market in New Zealand or anywhere else in the world that at the time has the features described in paragraphs (c) to (e); and

(b)

includes a recognised exchange market that at the time is approved for the purposes of this definition by the Commissioner, having had regard to the features described in paragraphs (c) to (e); and

(c)

for the purposes of paragraphs (a) and (b), the first feature is that the exchange market brings together buyers and sellers of shares or options over shares; and

(d)

for the purposes of paragraphs (a) and (b), the second feature is that the exchange market involves the listing of prices, whether by electronic media or other means, at which persons are willing to buy or sell shares or options; and

(e)

for the purposes of paragraphs (a) and (b), the third feature is that the exchange market provides a medium for the determination of arm’s length prices likely to prove fair and reasonable, having regard to—

(i)

the number of participants in the market or having access to the market; and

(ii)

the frequency of trading in the market; and

(iii)

the nature of trading in the market, including how prices are determined and transactions are effected; and

(iv)

the potential or demonstrated capacity of a person or persons significantly to influence the market; and

(v)

any significant barriers to entry to the market; and

(vi)

any discrimination on the basis of quantity bought and sold unless based on the risks involved, the transaction costs, or economies of scale

recognised seasonal employer (RSE) instructions means the recognised seasonal employer (RSE) instructions, certified under section 22(1) of the Immigration Act 2009

recognised seasonal employment scheme [Repealed]

recourse property is defined in—

(a)

section HB 11(12) (Limitation on deductions by persons with interests in look-through companies) for the purposes of that section:

(b)

section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section

recovery is defined in section CZ 29(5) (Accommodation expenditure: Canterbury earthquake relief) for the purposes of that section

redemption payment means the amount by which a payment made on the redemption of a commercial bill by the person who issued it is more than the money lent to the person, issue, in this definition, having the meaning given to it by section 2 of the Bills of Exchange Act 1908

reduced deficit debit [Repealed]

redundancy payment [Repealed]

refundable tax credit means—

(a)

a tax credit under subpart LB (Tax credits for payments, deductions, and family payments):

(b)
[Repealed]

(bb)
[Repealed]

(c)

a tax credit under subpart LO (Tax credits for Maori authority credits):

(d)

a tax credit under sections LS 2, LS 3(2), and LS 4(2) (which relate to multi-rate PIEs and certain of their investors), if the person with the tax credit is not a natural person or is a natural person having the tax credit as a beneficiary of a trust:

(e)

a tax credit under section LS 1 (Tax credits for multi-rate PIEs) to the extent to which it arises under section HM 53 or HM 55 (which relate to the use of tax credits other than foreign tax credits)

registered as a charitable entity [Repealed]

registered bank means a registered bank as defined in section 2 of the Reserve Bank of New Zealand Act 1989

registered person is defined in section 2 of the Goods and Services Tax Act 1985

registered security is defined in section 86F of the Stamp and Cheque Duties Act 1971

regulatory value is defined in section FE 20(2) (Financial value and regulatory value) for the purposes of section FE 19 (Banking group’s equity threshold)

reinsurance contract includes—

(a)

a cover note:

(b)

a renewal of a reinsurance contract

reinsurance grandparenting start day is defined in section EZ 62 (Reinsurance transition: life financial reinsurance may be life reinsurance)

reinvestment profit [Repealed] 

related activity is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

related by employment is defined in section EY 11(14) (Superannuation schemes providing life insurance) for the purposes of that section

related company is defined in section GC 5(5) (Leases for inadequate rent) for the purposes of that section

related employer is defined in section RD 51(6) (Calculation of all-inclusive pay) for the purposes of that section

related-party debt is defined in section RF 12H (Meaning of related-party debt) for the purposes of the NRWT rules

related person is defined in section CZ 9B (Available capital distribution amount: 1988 to 2010) for the purposes of that section

relationship agreement, for a person, means—

(a)

an agreement for the purpose of Part 6 of the Property (Relationships) Act 1976 that is made on or after 28 July 1983 by the person with another person:

(b)

an order under section 25 of the Property (Relationships) Act 1976 that is made by a court on or after 28 July 1983 in relation to the person and another person

relationship period is defined in section MC 11(1) (Relationship periods and entitlement periods) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

relative,—

(a)

for the purposes of only this Act, other than in section HC 36 (Trusts and minor beneficiary rule) and the definition of look-through company, means a person connected with another person by—

(i)

being within the second degree of blood relationship to the other:

(ii)

being in a marriage, civil union, or de facto relationship with the other:

(iii)

being in a marriage, civil union, or de facto relationship with a person who is within the second degree of blood relationship to the other:

(iv)

being adopted as a child of the other or as a child of a person who is within the first degree of relationship to the other:

(v)

being the trustee of a trust under which a relative has benefited or is eligible to benefit:

(b)

is defined in section HC 36(5) for the purposes of only that section:

(bb)

in the definition of look-through company, means a person connected with another person by any of the means described in paragraph (a)(i) to (iv):

(c)
[Repealed]

relevant balance date is defined in section GB 45 (Arrangements involving money not at risk) for the purposes of that section

relevant period is defined in section YC 13(3) (Corporate spin-outs) for the purposes of that section

relinquishment,—

(a)

for a petroleum permit, means the abandonment, expiry, forfeiture, revocation, or surrender of the permit otherwise than for a replacement permit; and

(b)

for an existing privilege applying to a mining licence under the Petroleum Act 1937, includes the expiry of the initial term without an extension of the initial term or an extension of a specified term

remaining deduction

(a)

is defined in section EJ 4(6) (Expenditure incurred in acquiring film rights in feature films) for the purposes of that section:

(b)

is defined in section EJ 5(4) (Expenditure incurred in acquiring film rights in films other than feature films) for the purposes of that section:

(c)

is defined in section EJ 8(5) (Film production expenditure for films other than New Zealand films) for the purposes of that section

removal or restoration operations, for a petroleum miner, means removing petroleum mining assets of the kind described in section CT 7(1)(b) or (c) (Meaning of petroleum mining asset), or restoring the site of petroleum mining operations, because of the relinquishment of the petroleum permit relating to the assets or the operations

rent is defined in section GC 5(5) (Leases for inadequate rent) for the purposes of that section

repairs, in sections CC 2 (Non-compliance with covenant for repair) and DB 21 (Amounts paid for non-compliance with covenant for repair), includes painting and general maintenance

replaced area fraction is defined in section DO 9 (Meaning of replaced area fraction and diminished value) for the purposes of sections DO 5 and DO 6 (which relate to horticultural plants)

replacement ETS unit [Repealed]

replacement forest land emissions unit means an emissions unit acquired by a person if—

(a)

the person has previously disposed of a post-1989 forest land emissions unit or forest sink emissions unit other than by—

(i)
(ii)

transfer to the Crown under a forest sink covenant under section 67Y of the Forests Act 1949; and

(b)

the person has not since the disposal acquired another emissions unit that replaces the post-1989 forest land emissions unit or forest sink emissions unit

replacement payment, for a returning share transfer, means a payment to a person of an amount that is—

(a)

economically equivalent to a dividend or part of a dividend for an original share:

(b)

increased by an imputation credit attached to the payment

replacement permit

(a)

means a petroleum permit obtained in whole or part exchange for another petroleum permit over the same or part of the same area; and

(b)

includes a sequential series of replacement permits to the extent to which each permit in the series replaces the previous permit in the series

replacement plant, in sections DO 6, DO 7, and DO 9 (which relate to horticultural plants) means a listed horticultural plant that replaces a listed horticultural plant, whether or not it is of the same type of listed horticultural plant

reporting bank is defined in section FE 4 (Some definitions) for the purposes of subpart FE (Interest apportionment on thin capitalisation)

reporting standard [Repealed]

request, for a mode of communication, has the meaning set out in section 14B of the Tax Administration Act 1994

required interest [Repealed]

research is defined in section DB 35 (Some definitions) for the purposes of that section, section DB 34, and subpart MX (which relate to research and development)

research and development activities [Repealed]

research and development project [Repealed]

resident foreign trustee is defined in section 3(1) of the Tax Administration Act 1994

resident group member is defined in section IQ 2B(9) (Effect of attributed CFC net loss and some FIF net loss from before first affected year) for the purposes of that section and section LK 5B (Credits from tax year before first affected year)

resident imputation subgroup has the meaning given in section FN 8(2) (Trans-Tasman imputation groups and resident imputation subgroups)

resident in Australia, for a company, means being resident under section YD 2(1) (Residence of companies) if Australia were treated as being New Zealand for the purposes of that section

resident in New Zealand and resident of New Zealand have the same meaning as New Zealand resident

resident mining operator [Repealed] 

resident passive income

(a)

is defined in section RE 2(1) (Resident passive income); and

(b)

unless the context otherwise requires, includes RWT required to be withheld under the RWT rules

residential land,—

(a)

means—

(i)

land that has a dwelling on it:

(ii)

land for which the owner has an arrangement that relates to erecting a dwelling:

(iii)

bare land that may be used for erecting a dwelling under rules in the relevant operative district plan; but

(b)

does not include land that is—

(i)

used predominantly as business premises:

(ii)

farmland

residential land purchase amount means, in relation to residential land located in New Zealand, an amount paid or payable for the disposal of the land, but excludes a deposit or part payment (the part-amount) if deposits and part payments, including the part-amount, total, in aggregate, less than 50% of the purchase price for the land

residential mortgage backed security means a security that is backed by New Zealand-originated first mortgages on New Zealand residential property

residential purposes is defined in section CB 18(3) (Residential exclusion from section CB 14) for the purposes of that section

resident’s restricted amalgamation is defined in section FO 3(1) (Resident’s restricted amalgamations) for the purposes of the amalgamation rules

residual expenditure means—

(a)

expenditure for which a person is allowed a deduction under section DB 33 (Scientific research):

(b)

expenditure incurred for—

(i)

an application fee payable to the Crown for a petroleum permit, exploration permit, mining permit, or prospecting permit; or

(ii)

insurance premiums, royalties paid under the Petroleum Act 1937 or the Crown Minerals Act 1991, land tax under the Land Tax Act 1976, or rates; or

(iii)

a lease of land or buildings; or

(iv)

a financial arrangement to which the old financial arrangements rules apply:

(c)

interest

residual income tax, for a person and for a tax year, means the positive amount, if any, that remains after subtracting from the person’s income tax liability for the tax year, the following amounts

(a)

the amount of any credit allowed against the income tax liability for tax paid by—

(i)

a trustee for the person as a beneficiary; or

(ii)

an agent for the person as a principal:

(b)

the amount of any credit allowed against the income tax liability under—

(i)

section LB 1 (Tax credits for PAYE income payments):

(ii)

section LB 3 (Tax credits for resident withholding tax):

(iii)

section LB 5 (Tax credits for non-resident withholding tax):

(iiib)

section LB 6 (Tax credits for RSCT):

(iiibb)

section LB 6B (Tax credits for RLWT):

(iiic)

section LC 13 (Tax credits for independent earners):

(iv)

section LE 1 (Tax credits for imputation credits):

(v)
[Repealed]

(vb)
[Repealed]

(vi)

section LJ 2 (Tax credits for foreign income tax):

(vii)

section LK 1 (Tax credits relating to attributed CFC income):

(viii)

section LK 6 (Use of tax credits by group companies):

(ix)

section LO 1 (Tax credits for Maori authority credits):

(c)

the amount of any credit allowed against the income tax liability arising under subpart LP (Tax credits for supplementary dividends), other than through section LP 3(3) (Use of remaining credits)

(d)
[Repealed]

(e)
[Repealed]

resource consent means a resource consent as defined in section 2 of the Resource Management Act 1991

restitution is defined in section DB 44(3) (Restitution of stolen property) for the purposes of that section

retained earnings [Repealed]

retirement savings scheme for a person means an entity eligible under section RH 3 (Retirement savings schemes)

retirement scheme contribution is defined in section RH 2 (Retirement scheme contributions)

retirement scheme contributor means an entity eligible under section RH 4 (Retirement scheme contributors)

retirement scheme prescribed rate, for a person and a retirement scheme contribution made for the person at a time in an income year, means a rate set out in schedule 6, table 2 (Prescribed rates: PIE investments and retirement scheme contributions)

return, for a person’s income, has the same meaning as return of income

return of income means a return of income required under section 33 of the Tax Administration Act 1994

returning share transfer means an arrangement—

(a)

under which—

(i)

a share (the original share) listed on an official list of a recognised exchange is transferred from a share supplier to a share user; and

(ii)

it is conditionally or unconditionally agreed that the share user or an associated person pays a replacement payment to the share supplier or an associated person, if a dividend is payable on the original share; and

(iii)

it is conditionally or unconditionally agreed that the original share or an identical share may be transferred from the share user to the share supplier or an associated person; and

(b)

that is not a warrant or instalment receipt

revenue account property, for a person, means property that—

(a)

is trading stock of the person:

(b)

if disposed of for valuable consideration, would produce income for the person other than income under section EE 48 (Effect of disposal or event), FA 5 (Assets acquired or disposed of after deductions of payments under lease), or FA 9 (Treatment when lease ends: lessee acquiring asset):

(c)

is an emissions unit of the person:

(d)

is a non-Kyoto greenhouse gas unit

right, in sections EW 32 (Consideration for agreement for sale and purchase (ASAP) of property or services, hire purchase agreement, specified option, or finance lease) and EW 34 (Consideration in foreign currency), and in the definitions of short-term agreement for sale and purchase and short-term option,—

(a)

means—

(i)

a right to possess the property; or

(ii)

a right to income derived from the property; or

(iii)

a right to control or influence the disposal of income derived from the property; or

(iv)

a right, directly or indirectly, to make a decision about the property; or

(v)

a right, directly or indirectly, to influence a person making a decision about the property; or

(vi)

any other right of a substantially similar nature; and

(b)

does not include the mere right to enforce an agreement for the sale and purchase of property or services or a specified option

right in the specified property is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

right to take timber includes an easement or licence or right of taking profits or produce from the land to the extent to which the easement, licence, or right relates to timber

rights date means, for an agreement for the sale and purchase of property or services, the date on which the first right in the property is transferred or the services are provided

ring-fenced tax loss means an amount referred to in section IA 7 (Restrictions relating to ring-fenced tax losses)

RLWT means residential land withholding tax and refers to an amount payable under the RLWT rules

RLWT certificate of exemption means a certificate of exemption issued by the Commissioner under section 54E of the Tax Administration Act 1994

RLWT rules means—

(a)

sections LA 4, LA 6, and LB 6B (which relate to tax credits for RLWT); and

(b)

subpart RL (Residential land withholding tax); and

(c)

sections 54B, 54C, 54D, and 54E, and Part 9 of the Tax Administration Act 1994

RMBS special purpose vehicle [Repealed]

rolling average value is defined in section EZ 4(5) (Valuation of livestock bailed or leased as at 2 September 1992) for the purposes of that section

routine government action [Repealed] 

royalty is defined in section CC 9(2) and (3) (Royalties)

RSCT means retirement scheme contribution tax

RSCT rules is defined in section RH 1 (RSCT rules and their application)

RWT means resident withholding tax and refers to an amount payable as income tax under the RWT rules

RWT exemption certificate means a certificate described in section 32E of the Tax Administration Act 1994

RWT proxy is defined in section 15N of the Tax Administration Act 1994

RWT rules means the provisions listed in section RE 1(1) (RWT rules and their application)

RWT substitution payment means an RWT substitution payment described in section RE 2(7) (Resident passive income)

RWT withholding certificate means a form provided under section 25 of the Tax Administration Act 1994

salary or wages

(a)

is defined in section RD 5 (Salary or wages):

(b)

is further defined in schedule 28, clause 7 (Requirements for complying fund rules) for the purposes of that schedule

savings component means,—

(a)

for a premium paid under a life insurance policy, the actuarially determined amount of the premium that is like the policyholder making an investment and is accounted for as increasing policyholder liabilities:

(b)

for a claim payable under a life insurance policy, the actuarially determined amount of the claim that is like the policyholder withdrawing an investment and is accounted for as reducing policyholder liabilities

savings product policy means a life insurance policy, other than an annuity, that may or may not have a life risk component and that has or will have a surrender value which—

(a)

is greater than zero; and

(b)

does not arise wholly from the payback of a some or all of a policyholder’s premiums relating to life risk

schedular income means income of any of the following types:

(a)

schedular policyholder base income:

(b)
[Repealed]

(c)
[Repealed]

(d)

category A income derived by a trustee of a group investment fund:

(db)

income derived by a multi-rate PIE:

(e)

income derived by a portfolio tax rate entity:

(f)

non-resident passive income of the kind referred to in section RF 2(3) (Non-resident passive income):

(g)

income to which section YD 6 (Apportionment of income from sea transport) applies:

(h)
[Repealed]

(i)

income to which section YD 8 (Apportionment of premiums derived by non-resident general insurers) applies

schedular income tax liability means the amount determined under section BC 7 (Income tax liability of person with schedular income)

scheduled overhaul period, for an aircraft engine and an aircraft and an operator of the aircraft, means the maximum permitted interval between successive aircraft engine overhauls of the aircraft engine that the operator is required to perform

schedular payment is defined in section RD 8 (Schedular payments)

schedular policyholder base income means schedular policyholder base income described in section EY 2(3) (Policyholder base)

schedular taxable income, for a tax year and a person who has schedular income of a particular kind for the tax year, means the amount of taxable income that the person has in calculating the schedular income tax liability for the kind for the tax year

scientific or technological uncertainty [Repealed]

seal and abandonment means the seal and abandonment of an exploratory well when a petroleum miner files a statutory declaration with the Commissioner stating that the miner has no intention of utilising the well in petroleum mining operations or of applying for a petroleum mining permit in relation to the area in which the well is located

second payment period means the period starting on the 16th day of a month and ending with the last day of the month

section 200 is defined in section CZ 7(4) (Primary producer co-operative companies: 1987–88 income year) for the purposes of that section

secured amounts

(a)

is defined in section HB 11(12) (Limitation on deductions by persons with interests in look-through companies) for the purposes of that section:

(b)

is defined in section HG 11(12) (Limitation on deductions by partners in limited partnerships) for the purposes of that section

secured arrangement,—

(a)

in the financial arrangements rules, and in the definitions of security arrangement and security payment, means an arrangement whose non-performance is secured against by a financial arrangement:

(b)

is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

security arrangement,—

(a)

except in the old financial arrangements rules, means a financial arrangement that secures a party against another person failing to perform the person’s obligations under a secured arrangement:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

security payment,—

(a)

in the financial arrangements rules, means money received by a party to a security arrangement to the extent to which—

(i)

the money is received for a loss incurred because of non-performance of the secured arrangement; and

(ii)

the money is income of the party:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

segment of foreign-sourced income is defined in section LJ 4 (Meaning of segment of foreign-sourced income) for the purposes of Part L (Tax credits and other credits)

selected period is defined in section MF 1(3) (Application for payment of tax credit by instalment) for the purposes of that section

self-assessed adverse event, for a person and a farming, agricultural, or fishing business of the person, means an event that—

(a)

is 1 of the following:

(i)

drought, fire, flood, or some other natural event:

(ii)

disease or sickness of livestock; and

(b)

materially affects the business; and

(c)

is described, together with the effect on the business, by the person in a statutory declaration given to the Commissioner

self-remission means, for a person,—

(a)

for the purposes of section EW 31(11) (Base price adjustment formula), a remission amount for a financial arrangement under which, and to the extent to which, because of the operation of section HB 1 or HG 2 (which relate to LTCs and partnerships), the person is also liable as debtor in their capacity of owner or partner:

(b)

for the purposes of section EW 39(4) (Consideration affected by unfavourable factors), the amount by which the consideration for the disposal of a financial arrangement is affected by a factor described in section EW 39(1)(d), to the extent to which:

(i)

the disposal occurs under section HB 4(3) or (6) or HG 4 (which relate to cessation of an LTC and dissolution of a partnership); and

(ii)

immediately before the disposal, the person is also liable as debtor in their capacity of owner or partner because of the operation of section HB 1 or HG 2

separated person, in subparts MA to MF and MZ (which relate to tax credits for families), and in the definitions of spouse and civil union partner, means a person who is separated and living apart from their spouse or civil union partner, whether under an agreement for separation, or under a court order, or otherwise

services,—

(a)

in sections CD 5 (What is a transfer of value?) and EA 3 (Prepayments), and subpart MX (Tax credits for R&D tax losses), means anything that is not goods, money, or a chose in action:

(b)

in sections CX 1 (Goods and services tax), DB 2 (Goods and services tax), subpart MX, and in the definitions of R&D expenditure and R&D material, means anything that is not goods or money, as each of those terms is defined in section 2 of the Goods and Services Tax Act 1985

settlement

(a)

means—

(i)

an act or failure to act on the part of a person that has the effect of making the person a settlor; or

(ii)

a transaction or series of transactions that a person enters into and that has the effect of making the person a settlor; and

(b)

includes a settlement that a person is treated as making because the person is treated as being a settlor of the settlement; but

(c)

in the definition of principal settlor in section CB 16A(3) (Main home exclusion for disposal within 2 years), does not include either services provided to a trust for less than market value, or a transfer of value except if that value is transferred by 1 or more of the following:

(i)

a beneficiary:

(ii)

a trustee:

(iii)

a person with power of appointment or removal of trustees:

(iv)

a person with a contingent interest in the trust property, in the case that the trust fails:

(v)

a decision-maker under the trust

settlement of relationship property is defined in section FB 1B(a) (Meaning of settlement of relationship property and property) for the purposes of subpart FB (Transfers of relationship property)

settlement of relationship property is defined in section FB 1B (Meaning of settlement of relationship property) for the purposes of subpart FB (Transfers of relationship property)

settlement of relationship property is defined in section FB 1(3) (What this subpart does) for the purposes of subpart FB (Transfers of relationship property)

settlor,—

(a)

is defined in section HC 27 (Who is a settlor?):

(b)

in sections HC 36 and HC 37 (which relate to minor beneficiaries), has the meaning given in paragraph (a), with the following qualifications:

(i)

in section HC 27(2) if the transfer of value is the provision of financial assistance by way of a loan for less than market value, it means loans existing on or after 1 April 2002 for which the interest rate on the amount borrowed is at any time during a tax year less than the interest rate set out in the Income Tax (Fringe Benefit Tax, Interest on Loans) Regulations on 31 March of the previous tax year; and

(ii)

in section HC 27(2) the transfer of value does not include the provision of financial assistance by way of a guarantee that was not called on or the provision of security that was not called on; and

(iii)

in section HC 27(2) the transfer of value does not include services that are incidental to the operation of the trust, such as bookkeeping or accounting services or those provided in being a trustee:

(c)

has the meaning given in paragraph (a) modified by section YB 10 (Who is a settlor?) for the purposes of sections YB 7 to YB 9 (which relate to associated persons)

share

(a)

includes any interest in the capital of a company:

(b)

includes a debenture to which section FA 2 (Recharacterisation of certain debentures) applies:

(bb)

includes a stapled debt security to which section FA 2B(2) (Stapled debt securities) applies:

(c)

includes a unit in a unit trust:

(d)

includes an investor’s interest in a group investment fund if—

(i)

the fund is not a designated group investment fund; and

(ii)

the interest does not result from an investment from a designated source; and

(iii)

the investor’s interest does not result from an investment made in the fund on or before 22 June 1983, including an amount treated as invested at that date as pre-1983 investments under section HR 3(8) (Definitions for section HR 2: group investment funds):

(e)

does not include a withdrawable share in a building society, except in the definitions of investment society dividend and withdrawable share:

(f)

is further defined in section CE 6 (Meaning of share: when share acquired) for the purposes of sections CE 2 to CE 4 and CE 7 (which relate to share purchase agreements):

(g)

is further defined in section DC 15 (Some definitions) for the purposes of sections DC 12 to DC 15 (which relate to share purchase schemes)

share-lending arrangement means an arrangement, entered into on or after 1 July 2006, that is a returning share transfer, and—

(a)

the agreed term of the arrangement is 1 year or less; and

(b)

the terms and conditions of the arrangement, including the share-lending collateral, are ordinary commercial terms and conditions consistent with those that would apply between parties negotiating at arm’s length; and

(c)

the amount of tax calculated under section RE 17 (Replacement payments under share-lending arrangements) for a replacement payment, if any, is paid; and

(d)

the share user disposes of the original share or an identical share to the share supplier during the agreed term of the arrangement, or within a further period allowed by the Commissioner; and

(e)

the share user—

(i)

agrees to issue, and issues, a credit transfer notice in relation to a dividend paid for the original share:

(ii)

establishes and maintains an imputation credit account, if a dividend is payable for the original share during the agreed term of the arrangement

share-lending collateral means an amount, or an adjustment to the amount, that—

(a)

is related to the market value of an original share under a share-lending arrangement, and the amount is paid to a person,—

(i)

by a share user or an associated person to secure the transfer of the original share to the share user:

(ii)

by a share supplier or an associated person for the re-transfer of the original share or an identical share to them; and

(b)

is not a replacement payment

share-lending right means, for a share supplier under a share-lending arrangement, a conditional or unconditional right to acquire the original share or an identical share under the share-lending arrangement

share purchase agreement is defined in sections CE 7 (Meaning of share purchase agreement) and CZ 1 (Share purchase agreement income before 19 July 1968) for the purposes of sections CE 1 to CE 4 (which relate to employment income), EX 38 (Exemption for employee share purchase scheme of grey list company), HC 27B(3B) (Who is a settlor?), and the definition of profit distribution plan

share purchase scheme means a scheme approved for the time being by the Commissioner for the purposes of section DC 12 (Loans to employees under share purchase schemes)

share reorganisation, in the FIF rules and for a person and an attributing interest in a FIF, means an action of the FIF that causes an increase or reduction, other than for consideration, of the attributing interests held by persons, including the person, who hold attributing interests in the FIF immediately before the action

share supplier means a person, described as a share supplier, in the definition of returning share transfer, from whom a share user acquires an original share under a returning share transfer

share user means a person, described as a share user in the definition of returning share transfer, who acquires an original share under a returning share transfer

shareholder

(a)

includes—

(i)

a holder of a share; and

(ii)

a member of a company, whether the company’s capital is divided into shares or not:

(b)

does not include a holder of a withdrawable share in a building society, except in the definitions of investment society dividend and withdrawable share:

(c)

in subparts HA (Qualifying companies (QC)) and OE (Branch equivalent tax accounts (BETA)) and the imputation rules, and in the definition of shareholder dividend statement, includes a sharemilker (as defined in section 2 of the Sharemilking Agreements Act 1937), to the extent to which the sharemilker derives payment for produce transactions directly from a co-operative dairy or milk company

shareholder agreement, for a company,—

(a)

includes an arrangement to which the shareholders of the company are parties, in their capacity as shareholders; but

(b)

does not include an arrangement that is—

(i)

the company’s constitution:

(ii)

the terms of a debt security:

(iii)

the terms of the company’s shares

shareholder base, for a life insurer, means the base for shareholder income and allowable deductions and to which income of a particular source or nature, and tax credits received are apportioned under section EY 4 (Apportionment of income of particular source or nature, and of tax credits)

shareholder base allowable deductions means shareholder base allowable deductions described in section EY 3(2) (Shareholder base)

shareholder base income means shareholder base income described in section EY 3(1) (Shareholder base)

shareholder decision-making right means a right, carried by a share issued by a company or an option over a share issued by a company, to vote or participate in any decision-making concerning—

(a)

a dividend or other distribution to be paid or made by the company, whether on a liquidation of the company or otherwise, excluding decision-making undertaken by directors acting only in their capacity as directors; or

(b)

the constitution of the company; or

(c)

a variation in the capital of the company; or

(d)

the appointment of a director of the company

shareholder dividend statement means a statement required by section 29 of the Tax Administration Act 1994 to be given by a company to a shareholder to whom is paid a dividend referred to in that section

shareholder-employee,—

(a)

in sections EA 4 (Deferred payment of employment income) and EI 9 (Matching rule for employment income of shareholder-employee), and in the FBT rules and section 177A of the Tax Administration Act 1994, means a person who receives or is entitled to receive salary, wages, or other income to which section RD 3(2) to (4) (PAYE income payments) applies

(b)
[Repealed]
(c)
[Repealed]

shareholder FDP ratio [Repealed]

shareholder portion is defined in section GB 52 (Arrangements involving residential land: companies’ shares) for the purposes of that section

shareholding is defined in—

(a)

section EX 52(15) (Fair dividend rate annual method) for the purposes of that section:

(b)

section EX 53(17) (Fair dividend rate periodic method) for the purposes of that section:

(c)

section EX 56(19) (Cost method) for the purposes of that section

shares of the same class means any 2 or more shares of a company—

(a)

that carry the same shareholder decision-making rights; and

(b)

that carry the same rights, in terms of priority, amount payable per share, and otherwise, to be paid profits distributed by the company and distributions of assets of the company on a cancellation of its shares; and

(c)

for which either the owner, or the amount paid for the issue, of each share is the same if—

(i)

the company gives notice to the Commissioner in a form approved by the Commissioner, that the company chooses to treat the shares as a separate class; and

(ii)

the company can at all times from the time of issue of each share identify and distinguish the share from any other shares in the company

shearer means a person who—

(a)

undertakes the shearing of sheep, other than in the carrying on of a business by the person; and

(b)

is not a person permanently employed on the premises where the shearing shed is situated

shearing shed hand means a person who—

(a)

is employed in or about the shearing shed, other than in the carrying on of a business by the person; and

(b)

is not—

(i)

a shearer:

(ii)

a wool classer:

(iii)

a person permanently employed on the premises where the shearing shed is situated

short term agreement for the sale and purchase of property is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

short term trade credit is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

short-term agreement for sale and purchase means an agreement for the sale and purchase of property or services of 1 of the following classes:

(a)

an agreement under which settlement must take place or the services must be performed on or before the 93rd day after the date on which the agreement is entered into:

(b)

if the date on which the agreement is entered into cannot be established, an agreement under which settlement must take place or the services must be performed on or before the 93rd day after the earlier of—

(i)

the date on which the buyer first makes a payment to the seller; and

(ii)

the date on which the first right in the property is transferred or the services are performed:

(c)

if the agreement is continuous and the seller renders periodic invoices for the property or services, an agreement under which settlement must take place or the services must be performed on or before the 93rd day after the date on which each invoice is rendered

short-term bailment is defined in section EC 27 (Some definitions) for the purposes of subpart EC (Valuation of livestock)

short-term charge facility is defined in section CX 25(3) (Benefits provided by charitable organisations) for the purposes of the FBT rules

short-term option,—

(a)

in the financial arrangements rules, means a specified option of 1 of the following classes:

(i)

an option under which settlement must take place or the services must be performed on or before the 93rd day after the date on which the option is entered into:

(ii)

if the date on which the option is entered into cannot be established, an option under which settlement must take place or the services must be performed on or before the 93rd day after the earlier of the date on which the buyer first makes a payment to the seller and the date on which the first right in the property is transferred or the services are performed:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

shortfall penalty is defined in section 3(1) of the Tax Administration Act 1994

sickness, accident, or death benefit fund means a sickness, accident, or death benefit fund that is—

(a)

established for the benefit of—

(i)

employees; or

(ii)

the members of an incorporated society; or

(iii)

the surviving spouses and dependants of those employees or members; and

(b)

approved by the Commissioner

significant capital activity, in section DO 1(1)(g) (Enhancements to land) and schedule 20 (Expenditure on farming, horticultural, aquacultural, and forestry improvements) and in relation to a farming or agricultural business on land in New Zealand,—

(a)

means an activity that enables a change in the nature or character of a farming activity from that undertaken on the land immediately before the change; and

(b)

excludes an activity that enables a change in the intensity of a farming practice employed in a farming activity on the land

significant financial hardship [Repealed]

slice rule means the rule set out in section CD 23(3) (Ordering rule and slice rule) for calculating the amount of available subscribed capital per share

small-business person is defined in section RC 40 (Some definitions) for the purposes of subpart RC (Provisional tax)

small partnership means a partnership that is not a limited partnership and has 5 or less partners, none of whom are companies or partnerships

small passenger service vehicle has the same meaning as in section 2(1) of the Land Transport Act 1998

social assistance payment is defined in section MA 8 (Some definitions for family scheme) for the purposes of subparts MA to MF and MZ (which relate to tax credits for families)

social assistance suspensory loan is defined in section EZ 48 (Definitions) for the purposes of the old financial arrangements rules

sound commercial reason is defined in section EW 26(7) (Change of spreading method) for the purposes of that section.

sound recording is defined in the Copyright Act 1994

source in New Zealand, for income, means a source described in section YD 4 (Classes of income treated as having New Zealand source) and section YZ 1 (Source rule for interest)

special account [Repealed]

special corporate entity means—

(a)

a Crown Research Institute:

(b)

a group investment fund:

(c)

a Life Insurance Fund:

(d)

an entity that has not issued shares and is engaged mainly in the business of providing life insurance or other insurance to the public:

(e)

a local authority:

(f)

a public authority:

(g)

a State enterprise:

(h)

a statutory producer board other than a body that derives only exempt income:

(i)

any other statutory body that does not issue shares, if—

(i)

the statutory body is established by an Act of the Parliament of New Zealand or by a statute of the legislature, whether federal or state or provincial, of any territory outside New Zealand; and

(ii)

the Commissioner, having regard to the terms of the statute by which the body is established, is satisfied that it would be appropriate to treat the body as a special corporate entity for the purposes of those provisions of this Act whose application is dependent on the measurement of voting and market value interests:

(j)

any body incorporated under the Incorporated Societies Act 1908, for an income year in which the body on no day in the income year has shares on issue to the members of the body

special excluded depreciable property is defined in section EE 67 (Other definitions)

special home ownership account [Repealed]

special rate is defined in section EE 67 (Other definitions)

specified activity is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

specified activity net income is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

specified activity net loss is defined in section IZ 1(12) (Use of specified activity net losses) for the purposes of that section

specified base cost for 1983 income year property means the greater of—

(a)

the cost price or acquisition value of the property; and

(b)

the market value of the property on the last day of the 1982–83 income year

specified insurance premium is defined in section CX 16(3) (Contributions to life or health insurance)

specified lease means a lease of a personal property lease asset if—

(a)

the lease is entered into in the period starting on 6 August 1982 and ending on 19 May 1999 and the lease has a guaranteed residual value, or has a term of the lease that is more than 36 consecutive months, or has a term of the lease that is the economic life of the asset because the Commissioner considers that the asset has an economic life of less than 36 months, and—

(i)

the lessee becomes the owner of the asset at the end of the term of the lease:

(ii)

the lessee has the option to repurchase the asset at the end of the term of the lease at a price that the Commissioner considers will be significantly lower than the market value of the asset at the end of the term of the lease:

(iii)

the total of all personal property lease payments and the guaranteed residual value is more than or equal to, or to a small extent less than, the cost price of the asset:

(iv)

the lessor and the lessee agree that the lessee is liable for the payment of all, or nearly all, expenditure incurred for the costs of repair and maintenance of the asset and any other incidental costs arising during the term of the lease for the use of the asset:

(b)

the lease is entered into in the period starting on 6 August 1982 and ending on 19 May 1999 and the lessee acquires ownership of the asset by any means, whether from the lessor or another person:

(c)

the lease is entered into in the period starting on 28 October 1983 and ending on 19 May 1999 and—

(i)

a person other than the lessee acquires the asset; and

(ii)

the lessee and the person who acquires the asset are associated

specified livestock

(a)

means an animal of a type specified in schedule 17, column 1 (Types and classes of livestock); and

(b)

does not include an animal that is high-priced livestock, except as provided in section EC 37 (Bailment)

specified living allowance means—

(a)

an income-tested benefit; or

(b)

a veteran’s pension; or

(c)

New Zealand superannuation; or

(d)

a basic grant or an independent circumstances grant, made under regulations made under section 193 of the Education Act 1964, section 303 of the Education Act 1989, or an enactment substituted for those sections; or

(e)

compensation described in section RD 5(1)(b)(iii) (Salary or wages) if the compensation relates to a day forming part of a continuous period of eligibility for such compensation and the day falls after the earlier of—

(i)

the day having the same date as the first day of the continuous period of eligibility for compensation and occurring in the third calendar month after that first day; and

(ii)

the last day of the third calendar month after the first day of the continuous period of eligibility for compensation

specified mineral [Repealed] 

specified option,—

(a)

in the financial arrangements rules,—

(i)

means an option to acquire or dispose of property or services; and

(ii)

includes an agreement for the sale and purchase of property or services entered into as a result of the exercise of the option:

(b)

in the old financial arrangements rules, is defined in section EZ 48 (Definitions)

specified period,—

(a)

is defined in section EH 36 (Other definitions) for the purposes of the main income equalisation scheme:

(b)

is defined in section EH 62 (Other definitions) for the purposes of the adverse event income equalisation scheme:

(c)

is defined in section EH 79 (Other definitions) for the purposes of the thinning operations income equalisation scheme

spouse, in subparts MA to MF and MZ (which relate to tax credits for families), and in the definitions of entitlement period, full-time earner, and separated person, does not include a separated person

spreading method means a method listed in section EW 14(2) (What spreading methods do)

stallion means a stallion that is bloodstock

standard accounting year has the meaning given in section YE 1(4) (References to balance dates and years)

standard balance date has the meaning given in section YE 1(4) (References to balance dates and years)

standard-cost household service means a service that is a standard-cost household service under a determination made by the Commissioner under section 91AA of the Tax Administration Act 1994

standard dividend means a dividend derived from a company by a shareholder in the form of—

(a)

money; or

(b)

the release of an obligation to repay an amount lent; or

(c)

a distribution of property of the company; or

(d)

a taxable bonus issue

standard income year is defined in section YE 1(4) (References to balance dates and years)

standard value, for non-specified livestock, means the value set under section EC 29 (Determining standard values)

standing timber includes trees that would be standing timber if they were mature trees

stapled, for a debt security and a share, is defined in section FA 2B(5) (Stapled debt securities)

stapled debt security means a debt security that is stapled to a share, if the share is not a fixed-rate share

starting date [Repealed]

State enterprise means a person specified in schedule 36, part A (Government enterprises)

statutory producer board means—

(a)

a body specified in schedule 37 (Statutory producer boards):

(b)

a marketing authority as defined in the Primary Products Marketing Act 1953 that is established by regulations made under that Act:

(c)

a primary producer board or marketing board established by an Act

statutory trustee company is defined in section 2 of the Trustee Companies Act 1967

straight-line method, for depreciation, is defined in section EE 67 (Other definitions)

straight-line rate is defined in section EE 67 (Other definitions)

subsidised transport means the provision of transport or an entitlement to transport to an employee by the employer, or by a company (the group company) in the same group of companies as the employer, in a quarter, or an income year if section RD 60 (Close company option) applies, if—

(a)

the employer or group company carries on a business consisting of, or including, transporting the public for hire or reward; and

(b)

the employer or group company provides the transport or the entitlement to the employee in the course of transporting the public; and

(c)

the transport or entitlement is not transport in a motor vehicle; and

(d)

the amount, if any, the employee pays is less than the highest amount the employer or group company charges the public, in the quarter or income year in which the provision to the employee occurs, for transport that is equivalent in terms of class, extent, and occasion to the transport or entitlement the employer or group company provides to the employee

subsidy claim form means a form that a listed PAYE intermediary must provide to the Commissioner in an electronic format prescribed by the Commissioner showing,—

(a)

the tax file number of the listed PAYE intermediary; and

(b)

the tax file number and name of each employer in relation to which a subsidy is claimed; and

(c)

the tax file number and name of each employee of each employer in relation to whom a subsidy is claimed under sections RP 4 (Payment of subsidies to certain PAYE intermediaries) and 15M of the Tax Administration Act 1994; and

(d)

the period to which the form relates; and

(e)

the number of PAYE income payments made by the listed PAYE intermediary to each employee in the period to which the form relates; and

(f)

the amount of subsidy that the listed PAYE intermediary claims for the period to which the form relates

substantial business assets is defined in section GB 28(6) (Interpretation of terms used in section GB 27) for the purposes of section GB 27 (Attribution rule for income from personal services)

substituting debenture [Repealed] 

superannuation category 1 scheme means a scheme or fund that was at the relevant time a superannuation category 1 scheme under the Income Tax Act 1976

superannuation category 2 scheme means a scheme or fund that was at the relevant time a category 2 scheme under the Income Tax Act 1976

superannuation category 3 scheme means a scheme or fund that was at the relevant time a superannuation category 3 scheme under the Income Tax Act 1976

superannuation contribution

(a)

means a disposition of property to or for the benefit of a superannuation scheme in consideration for which fully adequate consideration in money or money’ worth does not pass from the scheme to a person; and

(b)

does not include a benefit that may pass from the scheme to a person under the terms of the scheme

superannuation fund means—

(a)

a retirement scheme (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013); and

(b)

for a retirement scheme that is a trust, the trustees of the retirement scheme

superannuation policy is defined in section DZ 2(3) (Life insurers acquiring property before 1 April 1988) for the purposes of that section and section EZ 1 (Life insurers acquiring property before 1 April 1988)

superannuation savings scheme means all the entitlements and tax credits arising under subpart MK (Tax credits for KiwiSaver schemes and complying superannuation funds)

superannuation scheme

(a)

means—

(i)

a trust or unit trust established by its trust deed mainly for the purposes of providing retirement benefits to beneficiaries who are natural persons or paying benefits to superannuation funds; or

(ii)
[Repealed]

(iii)

a company that is not a unit trust, is not resident in New Zealand, and is established mainly for the purpose of providing retirement benefits to members or relatives of members who are natural persons; or

(iv)

an arrangement constituted under an Act of the Parliament of New Zealand, other than the New Zealand Superannuation and Retirement Income Act 2001, mainly for the purpose of providing retirement benefits to natural persons; or

(v)

an arrangement constituted under the legislation of a country, territory, state, or local authority outside New Zealand mainly for the purpose of providing retirement benefits to natural persons other than retirement benefits resembling New Zealand superannuation; and

(b)

for a superannuation scheme that is a trust, means the trustees of the scheme

supplement, for a provision in Part D (Deductions) means to allow a person a deduction without requiring them to satisfy the general permission

supplementary dividend, for a company and for a person deriving a dividend (the first dividend) from the company, means a dividend that—

(a)

is paid by the company in the same income year as the first dividend; and

(b)

is paid in relation to the first dividend; and

(c)

is derived by the person; and

(d)

is equal in amount to the tax credit calculated, for the first dividend, under section LP 2(2) (Tax credits for supplementary dividends)

supplementary dividend holding company [Repealed]

supply is defined in section GC 14 (Definitions for sections GC 6 to GC 13) for the purposes of sections GC 6, GC 9 and GC 10 (which relate to transfer pricing arrangements)

supporting asset base is defined in section EY 17 (Policyholder base income: profit participation policies)

surrender, for an emissions unit, means surrender as defined in section 4(1) of the Climate Change Response Act 2002

surrender value means the amount paid (the surrender amount) when a life insurance policy is cancelled before it reaches the maturity or expiry date contracted for under the policy, excluding an amount that is the repayment of unexpired premiums. There is no netting off against the surrender amount of unpaid premiums, outstanding loans, or interest balances (the debt obligations) owed by an insured unless the policy is terminated by the insurer and the debt obligations are greater than the surrender amount

systematic, investigative, and experimental activities [Repealed]

tax means income tax, but in the provisions in which the term “income tax” has an extended or limited meaning, “tax” has a corresponding meaning

tax account with the Commissioner, for a person, means an account dealing with the person’s transactions with the Commissioner in relation to income tax

tax advantage, in sections GB 35 and GB 36 (which relate to imputation arrangements to obtain a tax advantage), GB 42 and GB 43 (which relate to Maori authority credit arrangements to obtain a tax advantage) and sections OB 61, OC 28, OD 21, and OK 20 (which relate to memorandum accounts), means—

(a)

the allowance, wholly or partly, of a tax credit under section LE 1 (Tax credits for imputation credits):

(b)
[Repealed]

(c)
[Repealed]

(d)

the allowance, wholly or partly, of a tax credit under section LO 1 (Tax credits for Maori authority credits):

(e)

the arising of a credit to an imputation credit account under sections OB 4 to OB 29 (which relate to credits arising to imputation credit accounts):

(f)
[Repealed]

(g)

the arising of a credit to a Maori authority credit account under sections OK 2 to OK 9 (which relate to credits arising to Maori authority credit accounts)

tax agent means a person—

(a)

who prepares the annual returns required to be filed for 10 or more persons; and

(b)

who—

(i)

carries on a professional public practice; or

(ii)

carries on any business in which annual returns required to be filed are prepared; or

(iii)

is the Maori Trustee

tax avoidance includes—

(a)

directly or indirectly altering the incidence of any income tax:

(b)

directly or indirectly relieving a person from liability to pay income tax or from a potential or prospective liability to future income tax:

(c)

directly or indirectly avoiding, postponing, or reducing any liability to income tax or any potential or prospective liability to future income tax

tax avoidance arrangement means an arrangement, whether entered into by the person affected by the arrangement or by another person, that directly or indirectly—

(a)

has tax avoidance as its purpose or effect; or

(b)

has tax avoidance as 1 of its purposes or effects, whether or not any other purpose or effect is referable to ordinary business or family dealings, if the tax avoidance purpose or effect is not merely incidental

tax-base property is defined in section FC 1(2) (Disposals to which this subpart applies) for the purposes of subpart FC (Distribution, transmission, and gifts of property)

tax charity is defined in section CW 41(5) for the purposes of that section and sections CW 42 and CW 43

tax code, for an employee, means the employee’s tax code under section 24B of the Tax Administration Act 1994

tax credit

(a)

is defined in section LA 10 (Meaning of tax credit):

(b)

is defined in section GA 1(7) (Commissioner’s power to adjust) for the purposes of that section

tax credit advantage

(a)

is defined in section GB 36(5) (Reconstruction of imputation arrangements to obtain tax advantage) for the purposes of that section:

(b)

is defined in section GB 43(5) (Reconstruction of Maori authority credit arrangements to obtain tax advantage) for the purposes of that section

tax file number means an identification number that the Commissioner has allocated to a person—

(a)

generally for the purposes of this Act; or

(b)

specifically for the purpose of the issue to the person of an RWT exemption certificate under section RE 27 (RWT exemption certificates)

tax loss means an amount described in section IA 2(1) (Tax losses) and includes unused tax loss components arising in the current tax year or in an earlier tax year

tax loss component is defined in section IA 2(7) (Tax losses)

tax pooling account is defined in section RP 17B (Tax pooling accounts and their use)

tax position is defined in section 3(1) of the Tax Administration Act 1994

tax situation means, for the purposes of sections HZ 4B and HZ 4D (which relate to the transition of a qualifying company into a partnership or sole tradership), a status, right, obligation, liability, asset, or other thing authorised or arising under, required or imposed by, or necessary to comply with an Inland Revenue Act, and debts payable to the Commissioner

tax withheld means an amount of tax—

(a)

withheld from a PAYE income payment under the PAYE rules to the extent to which it is a tax credit under section LB 1 (Tax credits for PAYE income payments):

(b)

withheld and paid to the Commissioner under the RWT and NRWT rules to the extent to which it is a tax credit under section LB 3 or LB 5 (which relate to tax credits for passive income):

(c)

paid under regulations made under section 225 of the Tax Administration Act 1994

tax year

(a)

means a period starting on 1 April and ending on 31 March:

(b)

is defined in section IW 1(6) (Shortfall penalties) for the purposes of that section

taxable activity,—

(a)

in the provisional tax rules, the RWT rules, and the NRWT rules, is defined in section 6 of the Goods and Services Tax Act 1985, except that section 6(3)(d) does not apply:

(b)

is defined in section DB 3(3) (Determining tax liabilities) for the purposes of that section

taxable bonus issue means—

(a)

a bonus issue in lieu:

(b)

a bonus issue that a company chooses to treat as a dividend under section CD 8 (Elections to make bonus issue into dividend):

(c)

in the case of a bonus issue made before the enactment of this Act, a bonus issue that the company chose to treat as a dividend under a provision of an earlier Act corresponding to section CD 8:

(d)

a bonus issue that is a dividend under section CD 10 (Bonus issue by foreign unit trust instead of money or property):

(e)

a bonus issue that is a share issued under a profit distribution plan

taxable distribution, for a non-complying trust or a foreign trust, is defined in section HC 15 (Taxable distributions from non-complying and foreign trusts)

taxable income means taxable income for a tax year calculated under section BC 5 (Taxable income)

taxable Maori authority distribution is defined in section HF 7 (Taxable Maori authority distributions)

taxable period has the meaning given in section 2(1) of the Goods and Services Tax Act 1985

taxable supply has the meaning given in section 2(1) of the Goods and Services Tax Act 1985

taxation law, in sections EZ 52 (References to new rules include old rules), ZA 3 (Transitional provisions), ZA 4 (Saving of binding rulings), and ZA 5 (Saving of accrual determinations), means—

(a)

a provision that is a taxation law under section 91B of the Tax Administration Act 1994:

(b)

taxed CFC connection, for a CFC and a country or territory (the host country), means a relationship meeting the following requirements:

(a)

the CFC is resident in the host country under section YD 3 (Country of residence of foreign companies); and

(b)

there is no other country or territory for which the CFC is—

(i)

a resident under the domestic law of the country or territory:

(ii)

liable to income tax because of the CFC’s domicile, residence, place of incorporation, or centre of management:

(iii)

treated as a resident under an agreement with the host country that would be a double tax agreement if it were an agreement between New Zealand and the host country; and

(c)

the CFC has no presence outside the host country that is—

(i)

a fixed establishment:

(ii)

a permanent establishment under an agreement, between another country or territory and the host country, that would be a double tax agreement if it were between New Zealand and the host country; and

(d)

the CFC is liable in the host country to tax on its income because of the CFC’s domicile, residence, place of incorporation, or centre of management, or there is another foreign company (the parent company) that—

(i)

wholly owns the CFC under the laws of New Zealand and the host country; and

(ii)

has a relationship with the host country meeting the requirements of paragraphs (a) to (c); and

(iii)

because of the parent company’s domicile, residence, place of incorporation, or centre of management, is liable in the host country to tax on the CFC’s income in the same period that the CFC would be liable on its income if it were a company liable for tax

taxed FIF connection, for a FIF and a country or territory (the host country), means a relationship meeting the following requirements:

(a)

the FIF is resident in the host country under section YD 3 (Country of residence of foreign companies); and

(b)

there is no other country or territory for which the FIF is—

(i)

a resident under the domestic law of the country or territory:

(ii)

liable to income tax because of the FIF’s domicile, residence, place of incorporation, or centre of management:

(iii)

treated as a resident under an agreement with the host country that would be a double tax agreement if it were an agreement between New Zealand and the host country; and

(c)

the FIF has no presence outside the host country that is—

(i)

a fixed establishment:

(ii)

a permanent establishment under an agreement, between another country or territory and the host country, that would be a double tax agreement if it were between New Zealand and the host country; and

(d)

the FIF is liable in the host country to tax on its income because of the FIF’s domicile, residence, place of incorporation, or centre of management, or there is a foreign company (the parent company) that—

(i)

wholly owns the FIF under the laws of New Zealand and the host country; and

(ii)

has a relationship with the host country meeting the requirements of paragraphs (a) to (c); and

(iii)

because of the parent company’s domicile, residence, place of incorporation, or centre of management, is liable in the host country to tax on the FIF’s income in the same period that the FIF would be liable on its income if it were a company liable for tax

taxi [Repealed]

taxicab [Repealed]

taxpayer means a person who is, or may be, liable to perform or comply with an obligation imposed by this Act

technology [Repealed]

telecommunications service means a service, relating to information of any kind including pictures, sound, and data, that is—

(a)

the transmission, emission, or reception of such information in analogue or digital code by a technical system using any equipment, including a cable or satellite and associated equipment, for the transmission through any medium of energy in any form, including electric current or electromagnetic radiation:

(b)

the transfer or assignment of the right to transmit, emit, or receive such information by a system referred to in paragraph (a):

(c)

the provision of access to a global network for the transmission, emission, or reception of such information

temporary building means—

(a)
[Repealed]

(b)

a building that—

(i)

is erected at a construction site; and

(ii)

is to be demolished or removed on or before the completion of the construction; or

(c)

a building that—

(i)

was erected, and is used, to house specific plant or machinery; and

(ii)

will have to be demolished to remove or replace the plant or machinery

ten percent capital reduction is defined in section CD 22(9) (Returns of capital: off-market share cancellations) for the purposes of that section

term of the lease

(a)

means the period of time from the date on which a lease starts until it ends: