Section EZ 52D — Income Tax Act 2007: Base price adjustment: financial arrangements to which Determination G22 and Determination G22A applied

EZ 52D Base price adjustment: financial arrangements to which Determination G22 and Determination G22A applied How and when this section applies (1) This section does not alter or affect a person's tax position in relation to Determination G22 or the person's litigation of their tax position in relation to Determination G22 . It does not alter or affect the Commissioner's assessment of, or litigation of, that tax position. It applies after Determination G22 has applied for a person's financial arrangement, and only if, for the financial arrangement,–– (a) section EZ 52C applied; and (b) Determination G22A applies when the person is required to calculate a base price adjustment for the financial arrangement. Consideration adjustment (2) For the financial arrangement, the consideration referred to in section EW 31(7) (Base price adjustment formula) is adjusted in accordance with subsections (3) to (6). Issuer (3) If the person is the issuer of the financial arrangement, an amount calculated under subsections (5) and (6) is added to all consideration that has been paid, and all consideration that is or will be payable, by the issuer for or under the financial arrangement. Holder (4) If the person is a holder of the financial arrangement, an amount, referrable to the person's holding, calculated under subsections (5) and (6) is added to all consideration that has been paid, and all consideration that is or will be payable, to the holder for or under the financial arrangement. Calculation (5) For the purposes of subsections (3) and (4) the amount is calculated using the following formula: X − Z. Definition of items in formula (6) In the formula,–– (a) X is, for the financial arrangement, an amount equal to the item s in Determination G22 , clause 6(1), if that item were calculated in accordance with that Determination at the time immediately before the change of spreading method described in section EZ 52C(2) : (b) Z is, for the financial arrangement, an amount equal to the item s in Determination G22 , clause 6(1), if that item were calculated in accordance with that Determination at the time when it first applied. Defined in this Act: amount , consideration , financial arrangement Section EZ 52D: inserted, on 26 September 2010, by section 51 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).