Section EX 42 — Income Tax Act 2007: New resident’s accrued superannuation entitlement exemption

EX 42 New resident’s accrued superannuation entitlement exemption Exemption (1) The rights of a natural person to benefit, as a beneficiary or a member, from a foreign superannuation scheme at any time are not an attributing interest in a FIF— (a) to the extent to which the requirements of subsection (2) are met at the time; and (b) if the requirements of subsections (5) to (9) are met at the time. Requirements for accrual of rights (2) The rights must have accrued— (a) when the person is not a New Zealand resident: (b) during a period for which the person is a New Zealand resident that— (i) begins when the person becomes a New Zealand resident; and (ii) ends before the first day of the fifth income year following the income year in which the person becomes a New Zealand resident: (c) as a result of rights that satisfy paragraph (a) or (b). Calculation of rights accruing [Repealed] (3) [Repealed] Definition of items in formula [Repealed] (4) [Repealed] Employee scheme or self-employed (5) Either— (a) the scheme must be one where the person’s rights can be acquired only through the person’s employment; or (b) the person must be wholly or mainly self-employed, either when the person first acquired the rights or at the relevant time for applying this section. Contributions or benefits: link to income (6) The amount contributed to the scheme by or for the person must be calculated— (a) by some fixed relationship to the person’s income from employment or self-employment; or (b) to provide benefits that bear a fixed relationship to the person’s income from employment or self-employment, except to the extent to which the benefits are adjusted by reference to an objective measure of inflation. Contributions by person, employer, or other scheme (7) Contributions to the scheme for the person’s benefit must be made only by or for— (a) the person; or (b) the person’s employer, or a person associated with the employer; or (c) the representatives of another superannuation scheme— (i) as a transfer of the person’s benefit rights in the other scheme; and (ii) if those benefit rights would have qualified for the exemption in this section. Restricted rights to assign or cash in (8) The person’s future benefits under the scheme must not be able to be assigned, or exchanged for a current receipt of cash, or other property, except— (a) if the person becomes physically incapacitated; or (b) if the person is transferring the benefit rights into another, similar, scheme; or (c) when or after the person retires at normal retiring age; or (d) if the person is assigning the benefit rights to a spouse under a relationship agreement; or (e) at the cost of a substantial decrease in the present value of the benefits. Relationship property assignment (9) When the person has obtained the rights by their being assigned under a relationship agreement, the exemption in this section applies if the assignor spouse would have been entitled to it. Defined in this Act: amount , associated person , attributing interest , employer , FIF , foreign superannuation scheme , income , income from employment , market value , New Zealand resident , relationship agreement , superannuation scheme , Compare: 2004 No 35 s EX 36 Section EX 42(1)(a): amended, on 7 May 2012, by section 30(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 42(2) heading: replaced, on 7 May 2012, by section 30(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 42(2): replaced, on 7 May 2012, by section 30(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 42(3) heading: repealed, on 7 May 2012, pursuant to section 30(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 42(3): repealed, on 7 May 2012, by section 30(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 42(4) heading: repealed, on 7 May 2012, pursuant to section 30(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 42(4): repealed, on 7 May 2012, by section 30(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).