Section YF 1 — Income Tax Act 2007: General rules for currency conversion

YF 1 General rules for currency conversion When this section applies (1) This section applies when— (a) an amount is paid or payable in a currency other than New Zealand currency; and (b) a provision in this Act requires the amount to be taken into account in New Zealand currency, whether expressly or by necessary implication; and (c) this Act does not contain a specific currency conversion rule that requires the conversion of the amount into New Zealand currency under a method other than those in this section. Use of spot exchange rate (2) The amount must be converted into New Zealand currency by applying the close of trading spot exchange rate on the date at which the amount is required to be measured or calculated. Alternative use of monthly average rates (3) Despite subsection (2), the amount may be converted into New Zealand currency by applying the average of the close of trading spot exchange rates for the 15th day of each complete month that falls in the relevant period if— (a) the Commissioner allows it: (b) a provision in this Act specifically allows it. Particular cases in which monthly average rate permitted [Repealed] (4) [Repealed] General conversion rates and calculation methods approved by Commissioner (5) Despite subsection (2), the amount may be converted into New Zealand currency by applying a rate— (a) set by the Commissioner for general use for the purposes of this section: (b) calculated using a method approved by the Commissioner for general use for the purposes of this section. Specific conversion rates and calculation methods approved by Commissioner (6) Despite subsection (2), a person may convert the amount into New Zealand currency by applying a rate— (a) approved by the Commissioner for use in the circumstances of the person: (b) calculated using a method approved by the Commissioner for use in the circumstances of the person. Defined in this Act: amount , close of trading spot exchange rate , Commissioner , New Zealand , pay , Section YF 1(1)(c): substituted (with effect on 1 April 2008), on 6 October 2009, by section 575(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section YF 1(3) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 575(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section YF 1(3)(b): substituted (with effect on 1 April 2008), on 6 October 2009, by section 575(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section YF 1(4) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 575(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section YF 1(4): repealed (with effect on 1 April 2008), on 6 October 2009, by section 575(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section YF 1(5) heading: added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section YF 1(5): added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section YF 1(6) heading: added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section YF 1(6): added (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 118(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).