Section EW 30 — Income Tax Act 2007: When calculation of base price adjustment not required

EW 30 When calculation of base price adjustment not required Cash basis person who ceases to be temporary New Zealand resident (1) A cash basis person who ceases to be a New Zealand resident before the first day of the fourth income year following the income year in which they first became a New Zealand resident does not calculate a base price adjustment for a financial arrangement to which they— (a) were a party before first becoming a New Zealand resident; and (b) are a party on the date on which they cease to be a New Zealand resident. Other party who ceases to be New Zealand resident (2) A party to a financial arrangement who ceases to be a New Zealand resident does not calculate a base price adjustment to the extent to which the arrangement relates to a business the party carries on through a fixed establishment in New Zealand. Creditor when legal defeasance occurs (3) A party who has a right to receive money under a financial arrangement the obligations of which are the subject of a legal defeasance does not calculate a base price adjustment on the date of the defeasance if the defeasance requires another person to meet the remaining obligations of the arrangement. Debtor when legal defeasance occurs (4) A party to a financial arrangement does not calculate a base price adjustment if— (a) their obligations under the arrangement are the subject of an absolute legal defeasance; and (b) some or all of the consideration for the defeasance is deferred. Creditor when assignment occurs (5) A party to a financial arrangement does not calculate a base price adjustment if— (a) their rights under the arrangement are the subject of an absolute assignment; and (b) some or all of the consideration for the assignment is deferred. Defined in this Act: business , cash basis person , consideration , financial arrangement , fixed establishment , income year , legal defeasance , money , New Zealand , New Zealand resident , Compare: 2004 No 35 s EW 30