This note is not part of the regulations, but is intended to indicate their general effect.
These regulations, which come into force on 30 September 2002, amend the Fishing Industry Board (Dissolution) Regulations 2002, which come into force on the same day.
Clause 3 amends regulation 4 of the principal regulations to make it clear that it is subject to regulations 5A and 5B.
Clause 4 substitutes a new regulation 5 and inserts new regulations 5A and 5B into the principal regulations.
The main changes to regulation 5 are—
•income tax on taxable income of the Board does not become payable by The New Zealand Seafood Industry Council (SeaFIC); and
•liabilities for income tax on taxable income of the Board do not become SeaFIC's liabilities; and
•the transfer to SeaFIC of deeds, leases, and instruments entered into by the Board, and notices and undertakings given to or by the Board, is clarified.
Regulation 5A clarifies the effect of the dissolution of the Board and the vesting of its assets and liabilities in SeaFIC.
Regulation 5B deals with taxation implications. In summary,—
•for the purposes of the Income Tax Act 1994, the vesting of the assets and liabilities is treated as having occurred immediately before the Board's dissolution. The vesting is treated as if it were an arm's length sale and purchase at market value:
•for the purposes of the Goods and Services Tax Act 1985 and the Estate and Gift Duties Act 1968, the Board and SeaFIC are treated as the same person in respect of the vesting of the assets and liabilities.