Section CW 6 — Income Tax Act 2007: Payments of interest: farm mortgages

CW 6 Payments of interest: farm mortgages Exempt income (1) Fifty percent of the interest that a person derives from a mortgage securing a loan made by a seller of a farm is exempt income, if— (a) the Rural Banking and Finance Corporation of New Zealand approves the mortgage; and (b) the Corporation gives the Commissioner notice of the approval and each variation. Exclusions (2) This section does not apply if the person is— (a) an absentee; or (b) a company; or (c) a Maori authority; or (d) a public authority; or (e) a trustee liable for income tax under subpart HC (Trusts) and section HZ 2 (Trusts that may become complying trusts); or (f) an unincorporated body. Relationship with sections LZ 6 to LZ 8 (3) A person who derives interest that is exempt income under this section is not entitled to a tax credit for the interest under sections LZ 6 to LZ 8 (which relate to interest on home vendor mortgages). Defined in this Act: absentee , Commissioner , company , exempt income , income tax , interest , Maori authority , mortgage , notice , public authority , trustee , Compare: 2004 No 35 s CW 6