Section BH 1 — Income Tax Act 2007: Double tax agreements

BH 1 Double tax agreements Meaning (1) Double tax agreement means an agreement that— (a) has been negotiated for 1 or more of the purposes set out in subsection (2); and (b) has been agreed between— (i) the government of any territory outside New Zealand and the government of New Zealand; or (ii) the Taipei Economic and Cultural Office in New Zealand and the New Zealand Commerce and Industry Office; and (c) has entered into force as a result of a declaration by the Governor-General by Order in Council under subsection (3). Purposes (2) The following are the purposes for which a double tax agreement may be negotiated: (a) to provide relief from double taxation: (b) to provide relief from tax: (c) to tax the income derived by non-residents from any source in New Zealand: (d) to determine the income to be attributed to non-residents or their agencies, branches, or establishments in New Zealand: (e) to determine the income to be attributed to New Zealand residents who have special relationships with non-residents: (f) to prevent fiscal evasion: (g) to facilitate the exchange of information: (h) to assist in recovering unpaid tax. Entry into force (3) An agreement to which subsection (1)(a) and (b) apply enters into force on the date specified by the Governor-General by Order in Council. Overriding effect (4) Despite anything in this Act, except subsection (5), or in any other Inland Revenue Act or the Official Information Act 1982 or the Privacy Act 1993 , a double tax agreement has effect in relation to— (a) income tax: (b) any other tax imposed by this Act: (c) the exchange of information that relates to a tax, as defined in paragraphs (a)(i) to (v) of the definition of tax in section 3 of the Tax Administration Act 1994. Agreement for recovery of tax (5) An agreement that provides for the recovery of unpaid tax is subject to Part 10A of the Tax Administration Act 1994 . Reference to profits (6) A reference in a double tax agreement to the profits of an activity or business is to be read, if possible, as a reference to the amount that would be a person's net income if that activity or business were their only activity or business. Reference to unrelated persons (7) A reference in a double tax agreement to 2 persons being unrelated is to be read, if possible, as a reference to 2 persons being not associated. Defined in this Act: associated , business , double tax agreement , income , income tax , Inland Revenue Acts , net income , New Zealand , New Zealand resident , non-resident , pay , source in New Zealand , tax Compare: 2004 No 35 s BH 1 Section BH 1(7) heading: added, on 8 December 2009, by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section BH 1(7): added, on 8 December 2009, by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section BH 1 list of defined terms associated : inserted, on 8 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).