Section EK 16 — Income Tax Act 2007: Transfer on death, bankruptcy, or liquidation

EK 16 Transfer on death, bankruptcy, or liquidation When this section applies (1) This section applies when a person— (a) has an environmental restoration account; and (b) does 1 of the following: (i) dies: (ii) becomes bankrupt: (iii) is put into liquidation. Transfer to other person (2) Subsection (3) applies if the Commissioner is informed, by the administrator of the person’s estate, the Official Assignee, or the person’s liquidator, that the obligation to which the balance in the person’s environmental restoration account relates has been transferred to another person. Transfer by Commissioner (3) The Commissioner must transfer the amount referred to in subsection (4) to an environmental restoration account of the person to whom the obligation has been transferred. Amount of transfer (4) The Commissioner must transfer under subsection (3) the amount that is in the person’s environmental restoration account on the date on which— (a) the person dies, if subsection (1)(b)(i) applies: (b) the person becomes bankrupt, if subsection (1)(b)(ii) applies: (c) the person is put into liquidation, if subsection (1)(b)(iii) applies. Relationship with section EK 17 (5) Section EK 17 overrides subsection (4). Transfer treated as payment (6) A transfer to the environmental account of a person under subsection (3) is treated as a payment by the person to their environmental account. Year of income (7) The amount of a transfer under this section is income, under section CB 28 (Environmental restoration accounts), derived by the person on the day before the day on which the amount of the transfer is determined under subsection (4). Defined in this Act: amount , Commissioner , environmental restoration account , income , liquidation , pay , Compare: 2004 No 35 s EK 16