Section CX 11 — Income Tax Act 2007: Employment-related loans: loans by life insurers

CX 11 Employment-related loans: loans by life insurers When fringe benefit treated as arising (1) A life insurer provides a benefit that is treated as an employment-related loan if— (a) the life insurer makes a loan to a person who holds a life insurance policy ( person A ) or to a person associated with person A; and (b) the life insurance policy is offered or entered into in New Zealand; and (c) either— (i) the loan is made because of the capacity or status of person A as a policyholder; or (ii) the interest charged on the loan depends on the capacity or status of person A as a policyholder. Life insurer as employer (2) For the purposes of the FBT rules, the life insurer is treated as an employer and person A or the person associated with them is treated as an employee. Meaning of life insurer (3) In this section, life insurer — (a) means a person who is the insurer under the life insurance policy: (b) includes— (i) a person associated with the life insurer: (ii) a person with whom the life insurer has entered into an arrangement relating to the making of the loan. Defined in this Act: arrangement , associated person , employee , employer , employment-related loan , FBT rules , fringe benefit , interest , life insurance policy , life insurer , offered or entered into in New Zealand Compare: 2004 No 35 s CX 10