New Zealand Legislation: Bills

10B What is a transfer of value?

• (1) After section CD 5(2), the following is added:

  “When shares are cancelled

  • “(2B) The market value of any transfer from the shareholder to the company on the cancellation of a share of the shareholder's rights as a shareholder is zero.”

  (2) In section CD 5, in the list of defined terms, “market value”, “share”, and “shareholder” are inserted.

  (3) Subsection (1) applies for the 2008–09 and later income years.