Section EX 45 — Income Tax Act 2007: Exclusion of amounts of death benefit

EX 45 Exclusion of amounts of death benefit No FIF income (1) When this section applies, a person is treated as not deriving FIF income to the extent to which the income arises solely from receiving a death benefit under a life insurance policy. Application of this section: contract before becoming resident (2) This section applies if— (a) the person or the deceased (the contracting party ), when not a New Zealand resident, entered into a binding contract that gave rise to the benefit; and (b) at the time the contract was entered into, the contracting party either had not previously been a New Zealand resident or had not been a resident for at least the previous 10 years; and (c) the benefit was not increased by a voluntary action taken after the contracting party became a resident. Application of this section: pre-1992 contracts (3) This section also applies if— (a) before 2 July 1992 the person or the contracting party entered into a binding contract giving rise to the benefit; and (b) the benefit was not increased by a voluntary action taken on or after 2 July 1992. Defined in this Act: amount , FIF income , life insurance policy , New Zealand resident , year , Compare: 2004 No 35 s EX 39