Section CW 8 — Income Tax Act 2007: Money lent to government of New Zealand

CW 8 Money lent to government of New Zealand What this section applies to (1) This section applies to— (a) interest derived from money lent under a binding contract entered into on or after 29 July 1983; and (b) a redemption payment made on a commercial bill to which both the following apply; issue is defined in section 2 of the Bills of Exchange Act 1908: (i) it was issued on or after 29 July 1983; and (ii) it was not issued under a binding contract entered into before that date. Exempt income (2) Interest or a redemption payment that is payable outside New Zealand is exempt income if— (a) it is derived by a person who is a non-resident; and (b) it is derived from or in relation to money lent to— (i) the government of New Zealand; or (ii) a local authority or a public authority; and (c) in the case of money lent to a local or public authority,— (i) it is lent for the purposes of a non-commercial activity carried on in New Zealand by the local or public authority; and (ii) the government of New Zealand has approved the exempt status of the interest or redemption payment. Defined in this Act: commercial bill , exempt income , interest , local authority , money lent , New Zealand , non-resident , pay , public authority , redemption payment , Compare: 2004 No 35 s CW 8