Section EW 45 — Income Tax Act 2007: Consideration when debtor released from obligation

EW 45 Consideration when debtor released from obligation When this section applies (1) This section applies when— (a) a person is released from the obligation to pay an amount owing under a financial arrangement; and (b) the release occurs under— (i) section 304 of the Insolvency Act 2006; or (ii) any of the Inland Revenue Acts; or (iii) a loan described in subsection (2). Social assistance suspensory loan (2) A loan referred to in subsection (1)(b)(iii) is a loan that— (a) is made by a department or instrument of the executive government of New Zealand; and (b) provides for the person’s liability to pay to be wholly or partly remitted if they meet conditions intended to promote a social policy objective of the government of New Zealand; and (c) is of a class declared by the Governor-General by Order in Council to be a social assistance suspensory loan. Declaration as social assistance suspensory loan (3) The Governor-General may make an Order in Council declaring a class of loan that meets the criteria in subsection (2) to be a social assistance suspensory loan. Consideration (4) The person is treated as having paid the amount owing on the date on which they are released from the obligation to pay it. Defined in this Act: amount , consideration , financial arrangement , Inland Revenue Acts , New Zealand , pay , Compare: 2004 No 35 s EW 47