Section HZ 2 — Income Tax Act 2007: Trusts that may become complying trusts

HZ 2 Trusts that may become complying trusts When this section applies (1) This section applies in relation to a settlement made on a trust on or before 17 December 1987, whether or not further settlements have been made on the trust after that date, when a settlor, trustee, or beneficiary of the trust chose under section 228(7) of the Income Tax Act 1976 on or before 31 May 1989 to pay income tax on trustee income derived in the 1988–89 tax year and later tax years. Trustee income derived in earlier tax years (2) Trustee income having a source outside New Zealand, or having a source in New Zealand only as non-resident passive income in relation to which the income tax obligations have been satisfied, in the 1987–88 tax year and earlier tax years when no trustee was resident in New Zealand is treated as liable to income tax, other than only as non-resident passive income. Trustee’s obligations (3) The trustee’s obligations in relation to their income tax liability on the trustee income are treated as having been satisfied. Defined in this Act: complying trust , income tax , income tax liability , New Zealand , non-resident passive income , pay , resident in New Zealand , settlement , source in New Zealand , settlor , tax year , trustee , trustee income , Compare: 2004 No 35 s HZ 2 Section HZ 2(2): amended, on 21 December 2010, by section 103(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HZ 2 list of defined terms derived from New Zealand : repealed, on 21 December 2010, by section 103(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HZ 2 list of defined terms source in New Zealand : inserted, on 21 December 2010, by section 103(2)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).