Section HC 26 — Income Tax Act 2007: Foreign-sourced amounts: resident trustees

HC 26 Foreign-sourced amounts: resident trustees Exempt income (1) A foreign-sourced amount that a New Zealand resident trustee derives in an income year is exempt income under section CW 54 (Foreign-sourced amounts derived by trustees) if— (a) no settlor of the trust is at any time in the income year a New Zealand resident who is not a transitional resident; and (b) the trust is not— (i) a superannuation fund; or (ii) a testamentary trust or an inter vivos trust of which a settlor died resident in New Zealand (whether or not they died in the income year). When subsection (3) applies (2) Subsection (3) applies for an income year to a resident foreign trustee of a foreign trust to which sections 22(2)(fb) and (m) , and 59B of the Tax Administration Act 1994 applies. When knowledge offence committed (3) Subsection (1) does not apply if the trustee— (a) is not a qualifying resident foreign trustee for the income year; and (b) is convicted of an offence under section 143A of the Tax Administration Act 1994; and (c) has committed the offence in connection with information relating to the income year. Exception (4) Subsection (3) does not apply to an offence under section 143A(1)(b) of that Act if the information is supplied to the Commissioner after the conviction is entered. Defined in this Act: Commissioner , exempt income , foreign-sourced amount , foreign trust , income year , New Zealand resident , qualifying resident foreign trustee , resident foreign trustee , settlor , superannuation fund , transitional resident , trustee , Compare: 2004 No 35 s HH 4(3B), (3BB), (3BC) Section HC 26(4): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).