New Zealand Legislation: Bills

18 Available capital distribution amount

• (1) Section CD 44(11) and (12) are replaced by the following:

  “Associated person transactions

  • “(11) No capital gain amount is derived or capital loss amount is incurred by a company after 31 March 1988 on disposing of property under an arrangement with an associated person. This subsection is overridden by subsection (12).

  “Close company liquidations

  • “(12) Subsection (11) does not apply if—

    • “(a) the company is a close company; and

    • “(b) the associated person is not a company; and

    • “(c) the disposal is on the liquidation of the company.”

  (2) Section CD 44(15) to (17) are repealed.

  (3) In section CD 44, in the list of defined terms, “related person” and “relative” are omitted.

  (4) Subsections (1) to (3) apply for the 2009–10 and later income years.