New Zealand Legislation: Bills

18 Available capital distribution amount

• (1) After section CD 44(10) the following is inserted:

  “Associated persons transactions

  • “(10B) No capital gain amount is derived or capital loss amount incurred by a company after 31 March 2010 on disposing of property under an arrangement with an associated person. This subsection is overridden by subsection (10C).

  “Close company liquidations

  • “(10C) Subsection (10B) does not apply if—

    • “(a) the company is a close company; and

    • “(b) the associated person is not a company; and

    • “(c) the disposal is on the liquidation of the company.”

  (2) Section CD 44(11) and (12) is repealed.

  (3) After section CD 44(14), the following is inserted:

  “Relationship with section CZ 9B

  • “(14B) For capital gain amounts derived or capital loss amounts incurred between 1 April 1988 and 31 March 2010, see section CZ 9B (Available capital distribution amount: 1988 to 2010).”

  (4) Section CD 44(15) to (17) is repealed.

  (5) Subsections (1) to (4) apply for the 2010–11 and later income years.