Section EX 67 — Income Tax Act 2007: FIF rules first applying to interest on or after 1 April 2007

EX 67 FIF rules first applying to interest on or after 1 April 2007 When this section applies (1) This section applies when a person has rights in a FIF that— (a) for the period ending on a day (the preceding day ) are— (i) not an attributing interest: (ii) an attributing interest for which the person does not have FIF income or loss: (iii) rights for which the person is a share supplier in a returning share transfer; and (b) for the period beginning on the day (the application day ) following the preceding day are an attributing interest for which the person has FIF income or loss. Treatment as disposal and acquisition (2) The person is treated as having— (a) disposed of the interest immediately before the application day to an unrelated person; and (b) reacquired it immediately at the start of the application day; and (c) received for the disposal and paid for the reacquisition an amount equal to the market value of the interest at the time of the disposal. Payment of tax liability arising from transition (3) A person who is liable to pay an amount of income tax (the amount of tax ) because of the disposals in an income year, and related acquisitions, treated as occurring under this section— (a) may satisfy the liability by paying the Commissioner at least— (i) one third of the amount of tax in the income year following the income year in which the disposals are treated as occurring; and (ii) one half of the balance of the amount of tax remaining owing after payment made under subparagraph (i), in the second income year following the income year in which the disposals are treated as occurring; and (iii) the balance of the amount of tax remaining owing after payments made under subparagraphs (i) and (ii), in the third income year following the income year in which the disposals are treated as occurring: (b) is not liable to pay any penalty or interest for which the person would otherwise be liable for an inaccuracy in an estimate, or shortfall in the payment, of provisional tax to the extent to which the inaccuracy or shortfall arises because of the disposals. Defined in this Act: amount , attributing interest , Commissioner , FIF , FIF income , FIF loss , income tax , income year , loss , market value , New Zealand , pay , tax , Compare: 2004 No 35 s EX 54B Section EX 67(1) heading: substituted, on 1 April 2008, by section 400(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 67(1): substituted, on 1 April 2008, by section 400(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 67(3): amended, on 1 April 2008, by section 400(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 67(3)(a)(i): amended, on 1 April 2008, by section 400(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 67(3)(a)(ii): amended, on 1 April 2008, by section 400(2)(c) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 67(3)(a)(iii): amended, on 1 April 2008, by section 400(2)(d) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 67(3)(b): amended, on 1 April 2008, by section 400(2)(e) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).