Section EW 3 — Income Tax Act 2007: What is a financial arrangement?

EW 3 What is a financial arrangement? Meaning (1) Financial arrangement means an arrangement described in any of subsections (2) to (4). Money received for money provided (2) A financial arrangement is an arrangement under which a person receives money in consideration for that person, or another person, providing money to any person— (a) at a future time; or (b) on the occurrence or non-occurrence of a future event, whether or not the event occurs because notice is given or not given. Examples of money received for money provided (3) Without limiting subsection (2), each of the following is a financial arrangement: (a) a debt, including a debt that arises by law: (b) a debt instrument: (c) the deferral of the payment of some or all of the consideration for an absolute assignment of some or all of a person’s rights under another financial arrangement or under an excepted financial arrangement: (d) the deferral of the payment of some or all of the consideration for a legal defeasance releasing a person from some or all of their obligations under another financial arrangement or under an excepted financial arrangement. Excepted financial arrangement ceasing to be excepted (4) For sections EW 7 and EW 8 ,— (a) an excepted financial arrangement that ceases to be an excepted financial arrangement through the operation of section EW 7 is a financial arrangement: (b) an excepted financial arrangement that ceases to be an excepted financial arrangement for a party through the operation of section EW 8 is a financial arrangement for the party. Defined in this Act: consideration , excepted financial arrangement , financial arrangement , legal defeasance , money , pay , Compare: 2004 No 35 s EW 3