Section CR 3 — Income Tax Act 2007: Income of non-resident general insurer

CR 3 Income of non-resident general insurer What this section applies to (1) This section applies to a premium that is treated as having a source in New Zealand under section YD 8 (Apportionment of premiums derived by non-resident general insurers) if— (a) an insured person pays the premium to an insurer for insurance of any of the kinds described in subsection (3); and (b) the premium meets all 3 conditions in subsection (4); and (c) the premium is not excluded from the application of this section by section YD 8(6) . Amount of income (2) Ten percent of the gross premium derived by the insurer is income of the insurer. Kinds of insurance (3) The kinds of insurance referred to in subsection (1)(a) are— (a) general insurance: (b) a guarantee against risk given by an insurer to an insured person if— (i) the insured person is liable to pay a premium to the insurer for the guarantee; and (ii) the insured person is associated with the insurer: (c) a guarantee against risk given by an insurer to an insured person if— (i) the insured person is liable to pay a premium to the insurer for the guarantee; and (ii) the risk arises from money lent to the insured person; and (iii) the amounts the insured person is liable to pay for the money are significantly less than they would otherwise have been because of the guarantee; and (iv) the effect of the guarantee on the amounts payable is more than an incidental effect, or comes about as more than an incidental purpose, of the insurer’s giving the guarantee. Conditions for premium (4) The premium referred to in subsection (1)(b) is— (a) a premium derived by an insurer who is not resident in New Zealand when they derive it: (b) a premium that is not attributable to a fixed establishment of the insurer in New Zealand through which they carry on business in New Zealand: (c) a premium to which at least 1 of the following applies: (i) the insured person from whom the premium is derived is resident in New Zealand; or (ii) the insurance contract from which the premium is derived is offered or entered into in New Zealand; or (iii) the insurance contract from which the premium is derived is entered into for the purposes of a business carried on by the insured person in New Zealand through a fixed establishment in New Zealand. Defined in this Act: amount , business , fixed establishment , general insurance , gross , income , insurance , insurance contract , insured person , insurer , money lent , New Zealand , non-resident , offered or entered into in New Zealand , pay , premium , resident in New Zealand , source in New Zealand Compare: 2004 No 35 ss FC 13 , FC 14(2) Section CR 3(1): amended, on 21 December 2010, by section 32(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section CR 3 list of defined terms derived from New Zealand : repealed, on 21 December 2010, by section 32(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section CR 3 list of defined terms source in New Zealand : inserted, on 21 December 2010, by section 32(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).