Section HR 3 — Income Tax Act 2007: Definitions for section HR 2: group investment funds

HR 3 Definitions for section HR 2: group investment funds Category A income (1) Category A income , for a group investment fund other than a designated group investment fund in an income year, means the amount of income derived from the investments and funds of the group investment fund that is calculated using the formula— last day value − designated source investments − pre-1983 investments × income. last day value Definitions for items in formula (2) In the formula,— (a) last day value is the current value of all investments and funds of the group investment fund on the last day of the income year: (b) designated source investments is the current value of the designated source investments in the group investment fund on the last day of the income year: (c) pre-1983 investments is the current value of the pre-1983 investments in the group investment fund on the last day of the income year: (d) income is the total income derived from all investments and funds of the group investment fund in the income year. Category B income (3) Category B income , for a group investment fund other than a designated group investment fund, means the income derived from investments and funds of the group investment fund that is not category A income for the income year. Current value (4) Current value , for a group investment fund and a day in an income year, means the capital value, as defined by the Trustee Companies Act 1967 or the Public Trust Act 2001 , of the investments and funds of the group investment fund that is— (a) either— (i) last determined before the day under section 31 of the Trustee Companies Act 1967 or section 66 of the Public Trust Act 2001; or (ii) determined on the day, if that day is the day on which the capital value is determined; and (b) for the purposes of the definition of designated source investments in subsection (7), and pre-1983 investments in subsection (8), determined as if those investments and funds comprised all the investments and funds in the group investment fund at the time. Designated sources (5) Designated sources , for a group investment fund, means a trust, other than the trust under which the fund is established, whose trustee is a trustee of the group investment fund, that— (a) is created— (i) by will or codicil, or by order of court varying or modifying the provisions of a will or codicil; or (ii) on intestacy, including a partial intestacy, or by an order of court varying or modifying, in relation to an estate, the application of the law relating to the distribution of intestate estates; or (iii) by an order of court; or (iv) by an enactment; or (v) to administer funds that are compensation or other money arising from the death of, or injury to, a person; or (vi) to vary the terms of a will or codicil or, in relation to an estate, to vary the application of the law relating to the distribution of intestate estates, in either case for the sole purpose of effecting a settlement out of court of an application made, or proposed to be made, under the Family Protection Act 1955 or a claim, or a proposed claim, to be made under the Law Reform (Testamentary Promises) Act 1949 , if the terms are mainly the same as those likely to have been ordered by the court: (b) is not carried on for the private benefit of an individual whose funds are applied entirely or mainly for benevolent, philanthropic, cultural, or public purposes in New Zealand. Designated group investment fund (6) Designated group investment fund means a group investment fund whose investments and funds are invested wholly— (a) in investments authorised under section 4(1)(a) to (j) of the Trustee Act 1956, which is interpreted as if the Trustee Amendment Act 1988 had not been enacted, and are not investments authorised solely by the instrument creating the trust under which the fund is established; or (b) in, and for the purposes of, the carrying on of a forestry business on land in New Zealand, to the extent to which the investments and funds are invested in the land that the fund owned or otherwise held on 22 June 1983 for the purposes of the forestry business. Designated source investments (7) Designated source investments , for a group investment fund at any time, means investments and funds from designated sources invested at the time in the group investment fund. Pre-1983 investments (8) Pre-1983 investments , for a group investment fund at any time, means investments and funds that were invested in the group investment fund at 22 June 1983, other than designated source investments, as if those investments and funds had continued to be invested at the time, including— (a) money deposited between 15 June and 23 June 1983 with the trustee of the group investment fund for investment in the fund; and (b) money deposited between 22 June and 16 July 1983 with the trustee of the group investment fund for investment in the fund, which, on or before 22 June 1983, was subject to a binding commitment to deposit that money. Defined in this Act: amount , business , category A income , category B income , Commissioner , current value , designated group investment fund , designated source investments , designated sources , group investment fund , income , income year , New Zealand , pre-1983 investments , trustee , Compare: 2004 No 35 ss HE 2(2), (3) , OB 1 “ category A income ” , “ category B income ” , “ current value ” , “ designated group investment fund ” , “ group investment fund ”