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Technical tax area
Ngā tūmomo whakataunga me ngā aratohu

Accrual determinations

The Commissioner may determine certain matters relating to financial arrangements. A taxpayer may wish to apply for a determination to ascertain the tax treatment of a particular financial arrangement.

Accrual determination fees

This sets out the application and processing fees for applications received on or after 1 October 1999.

Special Determination S60: Spreading of income and expenditure under deferred payment arrangement

This determination applies to the applicants in relation to a deferred payment arrangement. Under the arrangement, a company assigned its rights to future cashflows to the applicants, in partial satisfaction of existing debts owed by the company to the applicants.

Special Determination S59: Equity Subordinated Notes in respect of a Limited Partnership Interest in a Public–Private Partnership

This determination relates to the issue of equity subordinated notes (ESNs) by a limited partnership to two of its limited partners (the Subscribers). The ESNs will be deemed to be repaid at a single, or several, nominated date(s) in the future, with the proceeds used to satisfy the Subscribers’ obligation to contribute a total of 60% of the required capital of Holdings LP.

Special Determination S58: Application of the financial arrangement rules to a public-private partnership

This determination relates to an arrangement involving the finance, design, construction and on-going provision of asset management and facilities maintenance services in respect of a Facility by a limited partnership under a public-private partnership agreement with the Crown.

Special Determination S57: Valuation of shares issued by Bank on Conversion of Notes

This determination relates to a funding transaction involving the issue of Notes by Bank to Group Member pursuant to a Deed Poll. The Notes will contain a conversion mechanism to allow them to be recognised as Tier 2 capital for the purposes of the Reserve Bank of New Zealand framework relating to the capital adequacy of banks.

Special Determination S37A: Application of the financial arrangements rules to the D&C Phase of a public-private partnership agreement

This determination varies and replaces Special Determination S37: Application of the financial arrangements rules to the D&C Phase of a public-private partnership agreement following a change of partners in the limited partnership.

Special Determination S36A: Application of the financial arrangements rules to a public-private partnership agreement

Determination S36A (26 Jan 2018) varies and replaces S36: Application of the financial arrangements rules to a PPP agreement following a change of partners.

Special Determination S56: Treatment of prepayments for services using IFRS

Determination S56 (9 Oct 2017) considers the treatment of prepayments for services received and made by a limited partnership under the financial arrangements rules.

Special Determination S55: Valuation of Shares Issued by Bank on Conversion

Determination S55 (8 Sep 2017) relates to a funding transaction involving the issue of notes by a bank to a parent company, and their valuation on conversion.

Special Determination S54: Application of financial arrangements rules to Investors in the Lifetime Income Fund

Determination S54 (18 Aug 2017) considers the application of financial arrangements rules to investors in the Lifetime Income Fund.

Special Determination S53: Application of the financial arrangements rules to a public-private partnership agreement

Determination S53 (Apr 2017) relates to an arrangement involving the finance, design, construction and on-going provision of operational services under a PPP.

Special Determination S52: Valuation of Shares Issued by Bank following a Non-Viability Trigger Event

Determination S52 (20 Mar 2017) relates to the valuation of shares issued by a bank following a non-viability trigger event.

Special Determination S51: Subordinated Convertible Note in respect of a Limited Partnership Interest in a Public–Private Partnership

Determination S51 (31 Oct 2016) relates to the issue of subordinated convertible notes by a limited partnership to two of its limited partners.

Special Determination S50: Application of the financial arrangements rules to the D&C Phase of a Public-Private Partnership

Determination S50 (31 Oct 2016) relates to the application of the financial arrangement rules to the design and construction phase of a PPP.

Special Determination S49: Application of the financial arrangements rules to a Public–Private Partnership

Determination S49 (Oct 2016) relates to an arrangement involving the construction and provision of services for a facility by a limited partnership under a PPP.

Special Determination S48: Spreading Method to be applied by Bank, valuation of shares issued by Bank on Conversion and solely attributable

Determination S48 (18 Oct 2016) relates to a funding transaction covering the issue of notes by a bank to its parent company pursuant to a deed poll.

Special Determination S47: Valuation of shares issued by Bank and HoldCo following a non-viability trigger event

This determination relates to a funding transaction involving the issue of Notes by the Bank to the public pursuant to a Deed Poll. The Notes will contain an exchange mechanism, to allow them to be recognised as Tier 2 capital for the purposes of the Reserve Bank of New Zealand and Australian Prudential Authority frameworks relating to the capital adequacy of banks. This determination applies where shares are issued by Bank and HoldCo following a non-viability trigger event, to determine the value of the shares for the purposes of the financial arrangements rules.

Special Determination S46: Valuation of shares issued by bank on conversion of notes

Determination S46 (30 May 2016) relates to a funding transaction and value of shares when notes issued by a Bank to the NZ branch of its Australian parent company.

Special Determination S45: Spreading of income and expenditure under varied intra-group debt arrangements

Determination S45 (21 Dec 2015) relates to spreading of income and expenditure under varied intra-group debt arrangements.

Special Determination S44: Spreading of income and expenditure under varied participants' debt arrangements

Determination S44 (21 Dec 2015) relates to the spreading of income and expenditure under varied participants' debt arrangements.

Special Determination S43: Valuation of shares issued by Bank and NZHoldCo following a non-viability trigger event

Determination S43 (5 Nov 2015) relates to the valuation of shares issued by a bank and its NZ holding company following a non-viability trigger event.

Special Determination S29A: Application of the financial arrangements rules to a public-private partnership

Determination S29A (8 Sep 2015) replaces S29: Application of the financial arrangements rules to a PPP following a change of partners in the limited partnership.

Special Determination S28A: Application of the financial arrangements rules to the D&C phase in a public-private partnership

Determination S28A (8 Sep 2015) replaces S28: Application of the financial arrangements rules to the D&C Phase in a PPP following a change of partners.

Special Determination S27A: Convertible notes in respect of a limited partnership interest

Determination S27A (8 Sep 2015) relates to convertible notes in respect of a limited partnership interest.

Special Determination S42: Application of the financial arrangements rules to the D&C Phase of a public-private partnership agreement.

Determination S42 (4 Sep 2015) relates to payments received by a limited partnership for the design and construction of a prison under a PPP.

Special Determination S41: Application of the financial arrangements rules to a public-private partnership agreement

Determination S41 (4 Sep 2015) relates to the finance, design, build and ongoing services to a prison by a limited partnership under a PPP.

Special Determination S40: Spreading method to be used by Infrastructure Provider in respect of the Provision of Services Agreement and valuation of shares issued under that Agreement

Determination S40 (10 Aug 2015) relates to a company share incentive scheme where a customer commits to increase the volume of throughput processed by the company.

Special Determination S39: Valuation of shares issued by bank following a non-viability trigger event

This determination relates to a funding transaction involving the issue of Notes by Bank to Parent. The notes will contain a conversion mechanism, in order to allow them to be recognised as Tier 2 capital for the purposes of the Reserve Bank of New Zealand framework relating to the capital adequacy of banks. This determination applies in the situation that shares are issued by Bank to Parent following a Non-Viability Trigger Event, to determine the value of the shares for the purposes of the financial arrangement rules.

Special Determination S38: Application of financial arrangements rules to loans by NZ Dairy Farming Trusts to New Zealand resident farmers

Determination S38 (15 May 2015) relates to the financial arrangements rules as applied to loans from NZ dairy farming trusts to NZ resident famers.

Special Determination S37: Application of the financial arrangements rules to the D&C Phase of a public-private partnership agreement

Determination S37 (28 Apr 2015) relates to payments received by a limited partnership for the design and construction of facilities under a PPP agreement.

Special Determination S36: Application of the financial arrangements rules to a public-private partnership agreement

Determination S36 (28 Apr 2015) relates to operation and maintenance services of a facility by a limited partnership under a PPP. Replaced by S36A (26 Jan 2018).

Special Determination S35: Valuation of Shares issued by Bank following a conversion event.

Determination S35 (9 Apr 2015) relates to the valuation of shares issued by a bank, where the Notes issued contain a conversion mechanism.

Special Determination S34: Spreading Method to Be Used by Bank in Respect of the Notes and Valuation of Shares Issued by Bank and NZHoldCo On Conversion

Determination S34 (19 Feb 2015) relates to a funding transaction involving the issue of notes by a bank to the public under a notes deed poll.

Special Determination S33 : Application of the financial arrangements rules to the long term incentive plan established for senior executives of New Zealand Company Limited

Determination S33 (Feb 2015) prescribes amounts under a company incentive plan that are solely attributable to excepted financial arrangements.

Special Determination S32: Spreading method to be used by bank in respect of the notes and the value of shares issued by bank on conversion.

Determination S32 (22 Jan 2015) relates to a funding transaction involving the issue of notes by a bank to the NZ branch of its Australian parent company.

Special Determination S31: Application of financial arrangements rules to investors in the Lifetime Income Fund

Determination S31 (24 Dec 2014) considers application of the financial arrangements rules to investors in the Lifetime Income fund.

Special Determination S30: Spreading method to be used by a company and growers for a share incentive scheme and valuation of shares issued under the scheme

Determination S30 (Nov 2014) relates to a share scheme in which produce growers supply produce in return for an entitlement to receive shares in the company.

Special Determination S29: Application of the financial arrangements rules to a public-private partnership

Determination S29 (25 Jul 2014) relates to finance, build and ongoing services of a facility by a limited partnership under a PPP. Replaced by s29A on 8 Sep 2015.

Special Determination S28: Application of the financial arrangements rules to the D&C Phase in a public-private partnership

Determination S28 (25 July 2014) relates to application of the FA rules to the design and construction phase of a PPP. Replaced by Determination S28A on 8 Sep 2015.

Special Determination S27: Convertible Notes in respect of a limited partnership interest

This determination relates to the subordinated convertible notes issued by the Holding Partnership to Limited Partner A. They are being issued to provide equity funding to the Holding Partnership as part of an arrangement involving the finance, design, construction and ongoing operation of the facility by the Partnership under a public-private partnership agreement with the Crown. This determination was varied and replaced by Determination s27A on 8 September 2015. It therefore applies for the period from 25 July 2014 to 8 September 2015.

Special Determination S26: Valuation of Shares Issued by Bank Following a Trigger Event

Determination S26 (15 Apr 2014) relates to the valuation of shares issued by a bank following a non-viability trigger event.

Special Determination S25: Valuation of Shares Issued by Bank and HoldCo Following a Non-Viability Trigger Event

Determination S25 (10 Mar 2014) relates to a funding transaction involving the issue of notes by a bank to the public pursuant to a deed poll.

Special Determination S24: Application of the financial arrangements rules to the sale of shares in Meridian by the Crown

Determination S24 (19 Sep 2013) relates to the application of the financial arrangements rules to the sale of shares in Meridian by the Crown.

Special Determination S23: Transfer of acquired bad debts by a certain New Zealand company to another New Zealand company in the same consolidated group and the utilisation of a profit emerging basis by the transferee company

This determination relates to the transfer of acquired bad debts from New Zealand Company Limited (NZC) to a newly incorporated company, New Zealand Company (2) Limited (NZC-2). NZC and NZC-2 are members of the same consolidated group at the time the acquired bad debts are transferred.

Special Determination S22: Application of the financial arrangements rules to a public-private partnership

Determination S22 (27 Aug 2012) relates to the design, construction and provision of services to a prison by a certain company under a PPP agreement.

Special Determination S21: Spreading of acquisition cost of agreements for the sale and purchase of services

Determination S21 (3 May 2012) relates to the spreading of expenditure arising on the acquisition of agreements for the provision of property maintenance services.

Special determination S20: Convertible redeemable notes and preference shares

Determination S20 (12 Dec 2011) relates to convertible redeemable notes issued by one company to another and preference shares issued by a third company.

Special Determination S19: Mandatory conversion convertible notes with consumer price index adjustments to face value

Determination S19 (10 Oct 2011) relates to mandatory conversion convertible issued by a wholly owned special purpose subsidiary of a company, to a third company.

Determination S18: Issue of perpetual non-cumulative shares by NZ Co, and related transactions

Determination S18 (17 Mar 2011) relates to an arrangement involving the issue of perpetual non-cumulative shares by a NZ company to its parent company.

Special Determination S17: Utilisation of a profit emerging basis for purchased debt ledgers by a certain New Zealand Company Limited

Determination S17 (17 Dec 2010) considers the utilisation of a profit emerging basis for purchased debt ledgers by a NZ company.

Determination S16: Financial arrangement income or expenditure from certain retirement village arrangement

Determination S16 relates to an Occupation Right Agreement or financial arrangement between the operator and a resident of a retirement village.

Determination S15: Issue of perpetual non-cumulative shares by BNZIS 2, and related transactions

Determination S15 relates to the issue of perpetual non-cumulative shares to the public and to National Equities Limited, and is fully described in BR Prd 09/12.

Cancellation of Determination G30

Determination G30 withdrawn 1 Oct 2009 – G30 was intended to eliminate volatility on financial arrangements resulting from IFRS tax rules.

Determination E12: Persons excused from complying with section EA 3 of the Income Tax Act 2007

Determination E12 (Mar 2009) determines the extent to which a person is excused from complying with section EA 3 of the Income Tax Act 2007.

Determination S14: Issue of perpetual non-cumulative shares by BNZIS, and related transactions

This determination covers an arrangement involving the issue of perpetual non-cumulative shares by BNZ Income Securities Limited to the public and to National Equities Limited. The arrangement is fully described in product ruling BR Prd 09/02.

Determination G30: Debt securities, finance leases and hire purchase agreements denominated in New Zealand dollars

Determination G30 (30 Mar 2006) allows financial institutions that adopt IFRS to mostly continue the same methods of calculating income and expenditure.