Section EW 38 — Income Tax Act 2007: Consideration when disposal for no, or inadequate, consideration

EW 38 Consideration when disposal for no, or inadequate, consideration When this section applies (1) This section applies when— (a) a person is a party to a financial arrangement; and (b) the person has an accrued entitlement under the arrangement; and (c) the person disposes of the arrangement; and (d) the disposal of the accrued entitlement— (i) is not for monetary consideration; or (ii) is for a consideration that is less than the market value of the entitlement on the date of the disposal. Consideration is market value (2) The person is treated as having been paid the market value that the accrued entitlement had on the date of the disposal. Defined in this Act: accrued entitlement , consideration , financial arrangement , pay , Compare: 2004 No 35 s EW 38