Fishing Industry Board (Dissolution) Amendment Regulations 2002

2002/309

Fishing Industry Board (Dissolution) Amendment Regulations 2002


Note

These regulations are administered in the Ministry of Fisheries.


Pursuant to section 35(1) of the Fishing Industry Board Act 1963, Her Excellency the Governor-General, acting on the advice and with the consent of the Executive Council, makes the following regulations.

1 Title
2 Commencement
  • These regulations come into force on 30 September 2002.

3 Dissolution of Board
  • Regulation 4 of the principal regulations is amended by inserting, as subclause (2), the following subclause:

    • (2) This regulation is subject to 5A and 5B.

4 New regulations 5 to 5B substituted
  • The principal regulations are amended by repealing regulation 5, and substituting the following regulations:

    5 Vesting of assets and liabilities of Board
    • (1) On and from the commencement of these regulations,—

      • (a) all property belonging to the Board vests in SeaFIC; and

      • (b) all money payable to or by the Board (other than income tax on taxable income of the Board) becomes payable to or by SeaFIC; and

      • (c) all liabilities (other than liabilities for income tax on taxable income of the Board), contracts, engagements, rights, and authorities of the Board become liabilities, contracts, engagements, rights, and authorities of SeaFIC; and

      • (d) all deeds, leases, and instruments entered into by the Board become deeds, leases, and instruments entered into by SeaFIC; and

      • (e) all notices and undertakings given to or by the Board become notices and undertakings given to or by SeaFIC; and

      • (f) all proceedings by or against the Board may be continued, completed, or enforced by or against SeaFIC.

      (2) This regulation is subject to regulations 5A and 5B.

    5A Effect of dissolution and vesting
    • Nothing in, or done under, regulation 4 or regulation 5—

      • (a) places the Board, SeaFIC, or any other person in breach of contract or confidence, or makes any of them liable for a civil wrong; or

      • (b) entitles a person to terminate or cancel a contract or arrangement, to accelerate the performance of an obligation, or to impose a penalty or an increased charge; or

      • (c) places the Board, SeaFIC, or any other person in breach of an enactment, a rule of law, or a provision of a contract that prohibits, restricts, or regulates the assignment or transfer of property or the disclosure of information; or

      • (d) releases a surety from an obligation; or

      • (e) invalidates or discharges a contract or surety.

    5B Taxation
    • (1) For the purposes of the Income Tax Act 1994,—

      • (a) the vesting of property and liabilities in SeaFIC by regulation 5 must be treated as having occurred immediately before the dissolution of the Board; and

      • (b) SeaFIC must be treated as having paid to another person who is not an associated person, and the Board must be treated as having received from another person who is not an associated person, consideration for the property equal to its market value at the time of its vesting under paragraph (a).

      (2) For the purposes of the Goods and Services Tax Act 1985 and the Estate and Gift Duties Act 1968, the Board and SeaFIC must be treated as if they were the same person in relation to anything done by, or as a result of, regulation 5.

Marie Shroff,

Clerk of the Executive Council.

Explanatory note

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.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 26 September 2002.


  • 1 SR 2002/211