Foreign Superannuation Funds

Question 1

The new rules apply to interests in a foreign superannuation scheme that are not _________________s. A ___________________ is an interest in a foreign superannuation scheme where either the person has applied the FIF rules to the interest in a return filed before 20 May 2013 and continues to apply those rules, or the interest was acquired when the person was resident in New Zealand.

MTG

Answer 1

FIF superannuation interest

Question 2

The new rules apply to interests in a foreign superannuation scheme that are not FIF superannuation interests. A FIF superannuation interest is an interest in a foreign superannuation scheme where either the person has applied the FIF rules to the interest in a return filed before __________ and continues to apply those rules, or the interest was acquired when the person was resident in New Zealand.

MTG

Answer 2

20 May 2013

Question 3

The new rules apply to interests in a foreign superannuation scheme that are not FIF superannuation interests. A FIF superannuation interest is an interest in a foreign superannuation scheme where either the person has applied the FIF rules to the interest in a return filed before 20 May 2013 and _______________, or the interest was acquired when the person was resident in New Zealand.

MTG

Answer 3

continues to apply those rules

Question 4

The new rules apply to interests in a foreign superannuation scheme that are not FIF superannuation interests. A FIF superannuation interest is an interest in a foreign superannuation scheme where either the person has applied the FIF rules to the interest in a return filed before 20 May 2013 and continues to apply those rules, or the interest was acquired when the person ___________________.

MTG

Answer 4

was resident in New Zealand

Question 5

When a New Zealand resident person acquires an interest when they are ______________ or treated under a double taxation agreement as being resident in another country, the foreign superannuation rules rather than the FIF rules apply.
MTG

Answer 5

non-resident

Question 6

When a New Zealand resident person acquires an interest when they are non-resident or treated __________________ as being resident in another country, the foreign superannuation rules rather than the FIF rules apply.

MTG

Answer 6

under a double taxation agreement

Question 7

When a New Zealand resident person acquires an interest when they are non-resident or treated under a double taxation agreement ___________________, the foreign superannuation rules rather than the FIF rules apply.
MTG

Answer 7

as being resident in another country

Question 8

When a New Zealand resident person acquires an interest when they are non-resident or __________________________, the foreign superannuation rules rather than the FIF rules apply.
MTG

Answer 8

treated under a double taxation agreement as being resident in another country

Question 9

When a New Zealand resident person acquires an interest when they are non-resident or treated under a double taxation agreement as being resident in another country, _______________ rather than the FIF rules apply.
MTG

Answer 9

the foreign superannuation rules

Question 10

When a New Zealand resident person acquires an interest when they are non-resident or treated under a double taxation agreement as being resident in another country, the foreign superannuation rules ___________________.
MTG

Answer 10

rather than the FIF rules apply

Question 11

When a New Zealand resident person acquires an interest when they are non-resident or treated under a double taxation agreement as being resident in another country, the ________________________.
MTG

Answer 11

foreign superannuation rules rather than the FIF rules apply

Question 12

The assessable period for foreign superannuation funds begins when the person _______________ and is not treated under any double tax agreement as resident in a foreign country.
MTG

Answer 12

first becomes New Zealand resident

Question 13

The assessable period for foreign superannuation funds begins when the person first becomes New Zealand resident and is not treated under any double tax agreement as _______________.
MTG

Answer 13

resident in a foreign country

Question 14

The ___________________ for foreign superannuation funds begins when the person first becomes New Zealand resident and is not treated under any double tax agreement as resident in a foreign country.
MTG

Answer 14

assessable period

Question 15

The assessable period for foreign superannuation funds _________ when the person first becomes New Zealand resident and is not treated under any double tax agreement as resident in a foreign country.
MTG

Answer 15

begins

Question 16

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and ________________ to the scheme while New Zealand resident, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest between he two set of rules).
MTG

Answer 16

continues to contribute

Question 17

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute _______________ while New Zealand resident, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest between the two set of rules).
MTG

Answer 17

to the scheme

Question 18

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme ___________________, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest between the two set of rules).
MTG

Answer 18

while New Zealand resident

Question 19

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and ________________________________, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest between the two set of rules).
MTG

Answer 19

continues to contribute to the scheme while New Zealand resident

Question 20

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed ________________, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest between the two set of rules).
MTG

Answer 20

under the superannuation rules

Question 21

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed under the superannuation rules, _________________, in relation to the whole interest (ie there is no need to apportion their interest between the two set of rules_.
MTG

Answer 21

rather than the FIF rules

Question 22

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed ______________________, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest between the two set of rules).
MTG

Answer 22

under the superannuation rules, rather than the FIF rules

Question 23

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed under the superannuation rules, rather than the FIF rules, ___________________ (ie there is no need to apportion their interest between the two set of rules).

MTG

Answer 23

in relation to the whole interest

Question 24

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to ______________________ between the two set of rules).
MTG

Answer 24

apportion their interest

Question 25

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to apportion their interest _________________________).
MTG

Answer 25

between the two set of rules

Question 26

Where a person first acquires an interest in a foreign superannuation scheme while non-resident and continues to contribute to the scheme while New Zealand resident, the person is taxed under the superannuation rules, rather than the FIF rules, in relation to the whole interest (ie there is no need to ___________________________).
MTG

Answer 26

apportion their interest between the two set of rules

Question 27

Under section ________ of the ITA, in addition to situations where a person was not a New Zealand resident when they acquired their foreign superannuation interest, the foreign superannuation rules also apply where the interest is a FIF superannuation interest but does not have a FIF income or loss because the total cost of their interests in FIFs is less than $50,000.

Answer 27

CF 3

Question 28

Under section CF 3 of the ITA, in addition to situations where a person was not a New Zealand resident when they acquired their foreign superannuation interest, the foreign superannuation rules also apply where the interest is a ________________ but does not have a FIF income or loss because the total cost of their interests in FIFs is less than $50,000.

Answer 28

FIF superannuation interest

Question 29

Under section CF 3 of the ITA, in addition to situations where a person was not a New Zealand resident when they acquired their foreign superannuation interest, the foreign superannuation rules also apply where the interest is a FIF superannuation interest but does not have a ____________ because the total cost of their interests in FIFs is less than $50,000.

Answer 29

FIF income or loss

Question 30

Under section CF 3 of the ITA, in addition to situations where a person was not a New Zealand resident when they acquired their foreign superannuation interest, the foreign superannuation rules also apply where the interest is a FIF superannuation interest but does not have a FIF income or loss because __________________ in FIFs is less than $50,000.

Answer 30

the total cost of their interests in FIFs

Question 31

Under section CF 3 of the ITA, in addition to situations where a person was not a New Zealand resident when they acquired their foreign superannuation interest, the foreign superannuation rules also apply where the interest is a FIF superannuation interest but does not have a FIF income or loss because the total cost of their interests in FIFs ______________.

Answer 31

is less than $50,000

Question 32

Under section CF 3 of the ITA, in addition to situations where a person was not a New Zealand resident when they acquired their foreign superannuation interest, the foreign superannuation rules also apply where the interest is a FIF superannuation interest but does not have a FIF income or loss because the _______________________.

Answer 32

total cost of their interests in FIFs is less than $50,000

Question 33

The change for “_________________” addresses this concern by ensuring that the schedule method in the foreign superannuation rules applies to lump-sum withdrawals (and transfers to New Zealand or Australian superannuation schemes) made from a foreign superannuation interest that was acquired while a taxpayer was a New Zealand resident, where the taxpayer has less than $50,000 of FIF interests.
MTG

Answer 33

low-value FIF superannuation interests

Question 34

The change for “Low-value FIF superannuation interests addresses this concern by ensuring that the ____________ in the foreign superannuation rules applies to lump-sum withdrawals (and transfers to New Zealand or Australian superannuation schemes) made from a foreign superannuation interest that was acquired while a taxpayer was a New Zealand resident, where the taxpayer has less than $50,000 of FIF interests.
MTG

Answer 34

schedule method

Question 35

The change for “Low-value FIF superannuation interests addresses this concern by ensuring that the schedule method in the foreign superannuation rules applies to lump-sum withdrawals (and transfers to New Zealand or Australian superannuation schemes) made from a foreign superannuation interest that was acquired while a taxpayer was a ______________, where the taxpayer has less than $50,000 of FIF interests.
MTG

Answer 35

was a New Zealand resident

Question 36

The change for “Low-value FIF superannuation interests addresses this concern by ensuring that the schedule method in the foreign superannuation rules applies to lump-sum withdrawals (and transfers to New Zealand or Australian superannuation schemes) made from a ______________ that was acquired while a taxpayer was a New Zealand resident, where the taxpayer has less than $50,000 of FIF interests.
MTG

Answer 36

foreign superannuation interest

Question 37

The change for “Low-value FIF superannuation interests addresses this concern by ensuring that the schedule method in the foreign superannuation rules applies to lump-sum withdrawals (and transfers to New Zealand or Australian superannuation schemes) made from a foreign superannuation interest that was acquired while a taxpayer was a New Zealand resident, where the taxpayer has less than __________________.
MTG

Answer 37

$50,000 of FIF interests

Question 38

The new rules in s _____ apply when a New Zealand resident derives a benefit from a foreign superannuation scheme (defined as a “foreign superannuation withdrawal”) unless the benefit is a pension or an annuity.
MTG

Answer 38

CF 3

Question 39

The new rules in s CF 3 apply when a New Zealand resident _____________ from a foreign superannuation scheme (defined as a “foreign superannuation withdrawal”) unless the benefit is a pension or an annuity.
MTG

Answer 39

derives a benefit

Question 40

The new rules in s CF 3 apply when a New Zealand resident derives a benefit from a foreign superannuation scheme (defined as a “foreign superannuation withdrawal”) unless the benefit is a pension or an annuity.
MTG

Answer 40

from a foreign superannuation scheme

Question 41

The new rules in s CF 3 apply when a New Zealand resident ____________________________ (defined as a “foreign superannuation withdrawal”) unless the benefit is a pension or an annuity.
MTG

Answer 41

derives a benefit from a foreign superannuation scheme

Question 42

The new rules in s CF 3 apply when a New Zealand resident derives a benefit from a foreign superannuation scheme (defined as a “___________________”) unless the benefit is a pension or an annuity.
MTG

Answer 42

foreign superannuation withdrawal

Question 43

The new rules in s CF 3 apply when a New Zealand resident derives a benefit from a foreign superannuation scheme (defined as a “foreign superannuation withdrawal”) ________________ is a pension or an annuity.
MTG

Answer 43

unless the benefit is a pension

Question 44

The new rules in s CF 3 apply when a New Zealand resident derives a benefit from a foreign superannuation scheme (defined as a “foreign superannuation withdrawal”) unless the benefit is a pension _______________.
MTG

Answer 44

or an annuity

Question 45

The new rules in s CF 3 apply when a New Zealand resident derives a benefit from a foreign superannuation scheme (defined as a “foreign superannuation withdrawal”) ________________________.
MTG

Answer 45

unless the benefit is a pension or an annuity

Question 46

How is the four-year exemption for foreign superannuation, different from the transitional residency rules?

Answer 46

Unlike the transitional residency rules a taxpayer does not have to be a non-tax resident for a minimum period to qualify for the exemption period.

https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Question 47

Many people who have transferred foreign pensions to New Zealand or who have the intention of transferring their foreign pensions to New Zealand are unaware of their tax obligations. In fact, Inland Revenue estimates that _____ of people who have transferred foreign pensions to New Zealand or made a lump sum withdrawal have not complied.

Inland Revenue have indicated to tax advisors and accountants on many occasions that they will be checking foreign superannuation transfers to ensure that taxpayers complied with the rules and we are starting to work with clients who have received audit letters from Inland Revenue.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 47

70%

Question 48

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the _______________________ contained in s HR 8 of the Income Tax Act 2007.

However, unlike the ___________________ a taxpayer does not have to be a non-tax resident for a minimum period to qualify for the exemption period.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 48

transitional residency rules

Question 49

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the transitional residency rules contained in s __________ of the Income Tax Act 2007.

However, unlike the transitional residency rules a taxpayer does not have to be a non-tax resident for a minimum period to qualify for the exemption period.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 49

HR 8

Question 50

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the transitional residency rules contained in s HR 8 of the Income Tax Act 2007.

However, unlike the transitional residency rules a taxpayer __________________ a non-tax resident for a minimum period to qualify for the exemption period.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 50

does not have to be

Question 51

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the transitional residency rules contained in s HR 8 of the Income Tax Act 2007.

However, unlike the transitional residency rules a taxpayer does not have to be ________________for a minimum period to qualify for the exemption period.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 51

a non-tax resident

Question 52

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the transitional residency rules contained in s HR 8 of the Income Tax Act 2007.

However, unlike the transitional residency rules a taxpayer does not have to be a non-tax resident _________________ to qualify for the exemption period.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 52

for a minimum period

Question 53

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the transitional residency rules contained in s HR 8 of the Income Tax Act 2007.

However, unlike the transitional residency rules a taxpayer ________________________________ to qualify for the exemption period.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 53

does not have to be a non-tax resident for a minimum period

Question 54

4 Year Exemption Period

The new rules also provide for a four-year period during which new migrants and returning residents can receive lump sum transfers and withdrawals with no New Zealand tax to pay. This rule is similar to the transitional residency rules contained in s HR 8 of the Income Tax Act 2007.

However, unlike the transitional residency rules a taxpayer does not have to be a non-tax resident for a minimum period ______________________.
https://www.navigatoraccounting.co.nz/new-rules-for-taxing-foreign-superannuation-transfers/

Answer 54

to qualify for the exemption period

Question 55

Australia

Effective from 1 April, 2010, any expat who has worked in Australia or are an Australian migrating to New Zealand is free to move their superannuation to New Zealand or make a withdrawal _________________.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 55

without any New Zealand tax to pay

Question 56

Effective from 1 April, 2010, any an expat who has worked in Australia or are an Australian migrating to New Zealand is free to move their superannuation to New Zealand or make a withdrawal without any New Zealand tax to pay.

However, if you transfer a lump sum from another country’s scheme into an Australian scheme,__________________.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 56

this does attract tax

Question 57

Effective from 1 April, 2010, any an expat who has worked in Australia or are an Australian migrating to New Zealand is free to move their superannuation to New Zealand or make a withdrawal without any New Zealand tax to pay.

However, if you transfer a lump sum from another country’s scheme into an Australian scheme, this does attract tax.

There is now the option of transferring lump sums directly into an approved super scheme in New Zealand _____________, or vice versa if you are emigrating to Australia.

Answer 57

like Kiwisaver

Question 58

The system in the United Kingdom is different. Her Majesty’s Revenue and Customs taxes superannuation ______________, not during the period of the scheme.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 58

upon withdrawal

Question 59

The first is the _____________ and by far the easiest to apply. You simply deduct a proportion of the gross amount and pay that as income tax in the year that you withdraw the lump sum. Bear in mind that if you have made contributions whilst a tax resident in New Zealand this may affect the amount of tax you need to pay.

The percentage is determined by how long you have been a tax resident in New Zealand. You are exempt from paying tax on your worldwide income for the first four years you are a tax resident.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 59

schedule method

Question 60

The first is the schedule method and by far the ____________. You simply deduct a proportion of the gross amount and pay that as income tax in the year that you withdraw the lump sum. Bear in mind that if you have made contributions whilst a tax resident in New Zealand this may affect the amount of tax you need to pay.

The percentage is determined by how long you have been a tax resident in New Zealand. You are exempt from paying tax on your worldwide income for the first four years you are a tax resident.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 60

easiest to apply

Question 61

The first is the schedule method and by far the easiest to apply. You simply deduct a proportion of the gross amount and pay that as income tax in the year that you withdraw the lump sum. Bear in mind that if you have ______________ whilst a tax resident in New Zealand this may affect the amount of tax you need to pay.

The percentage is determined by how long you have been a tax resident in New Zealand. You are exempt from paying tax on your worldwide income for the first four years you are a tax resident.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 61

made contributions

Question 62

The ___________________ is more complex but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the date of the expiry of the four-year exemption and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 62

formula method

Question 63

The formula method is _______________but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the date of the expiry of the four-year exemption and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 63

more complex

Question 64

The formula method is more complex but is worth considering. This method only taxes you on the __________________ on your foreign super scheme between the date of the expiry of the four-year exemption and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 64

actual gains

Question 65

The formula method is more complex but is worth considering. This method only taxes you on the actual gains on your __________________ between the date of the expiry of the four-year exemption and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 65

foreign super scheme

Question 66

The formula method is more complex but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the ______________________ and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 66

date of the expiry of the four-year exemption

Question 67

The formula method is more complex but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the date of the expiry of the four-year exemption and _________________________.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 67

when you actually receive the lump sum

Question 68

The formula method is more complex but is worth considering. This method only taxes you on the _________________________ between the date of the expiry of the four-year exemption and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 68

actual gains on your foreign super scheme

Question 69

The formula method is more complex but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the _________________ of the four-year exemption and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 69

date of the expiry

Question 70

The formula method is more complex but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the date of the expiry ___________________ and when you actually receive the lump sum.
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 70

of the four-year exemption

Question 71

It is only available if you have a _______________________

https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 71

defined contribution scheme

Question 72

The formula method is more complex but is worth considering. This method only taxes you on the actual gains on your foreign super scheme between the date of the expiry of the four year exemption and when you actually receive the lump sum.

It is only available if you have a _______________________
https://generateaccounting.co.nz/transferring-foreign-superannuation/

Answer 72

defined contribution scheme

Question 73

Defined benefit schemes are those where retirees are guaranteed a fixed income every week. ________________ are those where there is no guaranteed weekly income and where income is totally dependent on the contributions to, and investment performance of, portfolios.

New Zealand Superannuation can be classified as a defined benefit scheme, whereas KiwiSaver is a _______________________.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11619275

Answer 73

Defined contribution schemes

Question 74

Defined benefit schemes are those where retirees are guaranteed a fixed income every week. Defined contribution schemes are those where there is no guaranteed weekly income and where income is totally dependent on the ___________________________, portfolios.

New Zealand Superannuation can be classified as a defined benefit scheme, whereas KiwiSaver is a defined contribution scheme.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11619275

Answer 74

contributions to, and investment performance of

Question 75

Defined benefit schemes are those where retirees are guaranteed a fixed income every week. Defined contribution schemes are those where there is no guaranteed weekly income and where income is totally dependent on the contributions to, and investment performance of, ______________.

New Zealand Superannuation can be classified as a defined benefit scheme, whereas KiwiSaver is a defined contribution scheme.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11619275

Answer 75

portfolios

Question 76

Defined benefit schemes are those where retirees are guaranteed a fixed income every week. Defined contribution schemes are those where there is no guaranteed weekly income and where income is totally dependent on the contributions to, and investment performance of, portfolios.

New Zealand Superannuation can be classified as a defined benefit scheme, whereas _______________ is a defined contribution scheme.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11619275

Answer 76

KiwiSaver

Question 77

UniSaver is a _____________________. This means that benefits from UniSaver are based on contributions made and investment returns received, after deduction of fees, expenses and tax.
https://www.unisaver.co.nz/about-unisaver/

Answer 77

defined contribution superannuation scheme

Question 78

UniSaver is a defined contribution superannuation scheme. This means that benefits from UniSaver are based on __________________ and investment returns received, after deduction of fees, expenses and tax.
https://www.unisaver.co.nz/about-unisaver/

Answer 78

contributions made

Question 79

UniSaver is a defined contribution superannuation scheme. This means that benefits from UniSaver are based on contributions made and __________________, after deduction of fees, expenses and tax.
https://www.unisaver.co.nz/about-unisaver/

Answer 79

investment returns received

Question 80

UniSaver is a defined contribution superannuation scheme. This means that benefits from UniSaver are based on ___________________________, after deduction of fees, expenses and tax.
https://www.unisaver.co.nz/about-unisaver/

Answer 80

contributions made and investment returns received

Question 81

a _____________________ is a scheme where the benefits consist of contributions from employees and employers, plus earnings. KiwiSaver is a _________________ but it has additional contributions from the government.
https://www.psa.org.nz/media/campaigns/retirement-savings/

Answer 81

defined contribution scheme

Question 82

a defined contribution scheme is a scheme where the benefits consist of contributions from __________________, plus earnings. KiwiSaver is a defined contribution scheme but it has additional contributions from the government.
https://www.psa.org.nz/media/campaigns/retirement-savings/

Answer 82

employees and employers

Question 83

a defined contribution scheme is a scheme where the benefits consist of contributions from employees and employers, _______________. KiwiSaver is a defined contribution scheme but it has additional contributions from the government.
https://www.psa.org.nz/media/campaigns/retirement-savings/

Answer 83

plus earnings

Question 84

Under section ___________ The assessable withdrawal amount under the schedule method is calculated using the formula—
(super withdrawal − contributions left) × schedule year fraction.

Answer 84

CF 3 (10)

Question 85

Under section CF 3 (10) The _____________________ under the schedule method is calculated using the formula—
(super withdrawal − contributions left) × schedule year fraction.

Answer 85

assessable withdrawal amount

Question 86

Under section CF 3 (10) The assessable withdrawal amount under the ______________ is calculated using the formula—
(super withdrawal − contributions left) × schedule year fraction.

Answer 86

schedule method

Question 87

Under section CF 3 (10) The assessable withdrawal amount under the schedule method is calculated using the formula—
______________________ − contributions left) × schedule year fraction.

Answer 87

(super withdrawal

Question 88

Under section CF 3 (10) The assessable withdrawal amount under the schedule method is calculated using the formula—
(super withdrawal ___ contributions left) × schedule year fraction.

Answer 88

-

Question 89

Under section CF 3 (10) The assessable withdrawal amount under the schedule method is calculated using the formula—
(super withdrawal − __________________ × schedule year fraction.

Answer 89

contributions left)

Question 90

Under section CF 3 (10) The assessable withdrawal amount under the schedule method is calculated using the formula—
(super withdrawal − contributions left) ____ schedule year fraction.

Answer 90

x

Question 91

Under section CF 3 (10) The assessable withdrawal amount under the schedule method is calculated using the formula—
(super withdrawal − contributions left) × __________________.

Answer 91

schedule year fraction.

Question 92

Under section CF 3 (10) The assessable withdrawal amount under the schedule method is calculated using the formula—
_______________________________________________

Answer 92

(super withdrawal − contributions left) × schedule year fraction.

Question 93

Example 1
Lisa worked for a few years in Hong Kong and has an interest in her employer’s private superannuation scheme. She moves to New Zealand and, upon her retirement, begins to receive a monthly _______ payment of NZ$500 ($6,000 per year) from the scheme. These payments continue at the same amount (with an increase to account for inflation each year) until her death, at which point they will stop. From these facts, it appears that her monthly payments are a ________. She needs to include $6,000 in her New Zealand tax return each year and pay tax on that amount. If her marginal tax rate is 33%, she will pay tax of $1,980 each yea
TIB Vol 26 No 4

Answer 93

pension

Question 94

Example 1
Lisa worked for a few years in Hong Kong and has an interest in her employer’s private superannuation scheme. She moves to New Zealand and, upon her retirement, begins to receive a monthly pension payment of NZ$500 (________ per year) from the scheme. These payments continue at the same amount (with an increase to account for inflation each year) until her death, at which point they will stop. From these facts, it appears that her monthly payments are a pension. She needs to include ___________ in her New Zealand tax return each year and pay tax on that amount. If her marginal tax rate is 33%, she will pay tax of $1,980 each yea
TIB Vol 26 No 4

Answer 94

$6,000

Question 95

Example 1
Lisa worked for a few years in Hong Kong and has an interest in her employer’s private superannuation scheme. She moves to New Zealand and, upon her retirement, begins to receive a monthly pension payment of NZ$500 ($6,000 per year) from the scheme. These payments continue at the same amount (with an increase to account for inflation each year) until her death, at which point they will stop. From these facts, it appears that her monthly payments are a pension. She needs to include $6,000 in her New Zealand tax return each year and pay tax on that amount. If her marginal tax rate is 33%, she will pay tax of __________each yea
TIB Vol 26 No 4

Answer 95

$1,980

Question 96

Example 3
Kimberley, a New Zealand tax resident, has an interest in a foreign superannuation scheme in Spain that she acquired before migrating to New Zealand. She wants to change providers to get a better investment return, and decides to transfer her funds into another foreign superannuation scheme in France that offers better returns. Under the new rules, Kimberley does not need to pay New Zealand tax on the amount she transfers to the French scheme. Instead, she is taxed when she ____________________________ to a New Zealand superannuation scheme. Her tax liability on the transfer of the French interest into New Zealand takes into account the period of time she held the interest in the Spanish scheme while she was New Zealand-resident, as well as the period she held the French interest before transferring.
TIB Vol 26 No 4

Answer 96

transfers the interest in the French superannuation scheme

Question 97

Example 3
Kimberley, a New Zealand tax resident, has an interest in a foreign superannuation scheme in Spain that she acquired before migrating to New Zealand. She wants to change providers to get a better investment return, and decides to transfer her funds into another foreign superannuation scheme in France that offers better returns. Under the new rules, Kimberley does not need to pay New Zealand tax on the amount she transfers to the French scheme. Instead, she is taxed when she transfers the interest in the French superannuation scheme __________________________. Her tax liability on the transfer of the French interest into New Zealand takes into account the period of time she held the interest in the Spanish scheme while she was New Zealand-resident, as well as the period she held the French interest before transferring.
TIB Vol 26 No 4

Answer 97

to a New Zealand superannuation scheme

Question 98

Example 3
Kimberley, a New Zealand tax resident, has an interest in a foreign superannuation scheme in Spain that she acquired before migrating to New Zealand. She wants to change providers to get a better investment return, and decides to transfer her funds into another foreign superannuation scheme in France that offers better returns. Under the new rules, Kimberley does not need to pay New Zealand tax on the amount she transfers to the French scheme. Instead, she is taxed when she ________________________________________________. Her tax liability on the transfer of the French interest into New Zealand takes into account the period of time she held the interest in the Spanish scheme while she was New Zealand-resident, as well as the period she held the French interest before transferring.
TIB Vol 26 No 4

Answer 98

transfers the interest in the French superannuation scheme to a New Zealand superannuation scheme.

Question 99

Example 3
Kimberley, a New Zealand tax resident, has an interest in a foreign superannuation scheme in Spain that she acquired before migrating to New Zealand. She wants to change providers to get a better investment return, and decides to transfer her funds into another foreign superannuation scheme in France that offers better returns. Under the new rules, Kimberley does not need to pay New Zealand tax on the amount she ____________________. Instead, she is taxed when she transfers the interest in the French superannuation scheme to a New Zealand superannuation scheme. Her tax liability on the transfer of the French interest into New Zealand takes into account the period of time she held the interest in the Spanish scheme while she was New Zealand-resident, as well as the period she held the French interest before transferring.
TIB Vol 26 No 4

Answer 99

transfers to the French scheme

Question 100

Example 4
Mary, her husband Martin, and their son Simon are
all New Zealand tax residents. Mary first acquired an
interest in a United Kingdom superannuation scheme
while she was non-resident.

Mary dies unexpectedly. In her will, Mary transfers half
of her interest in the UK superannuation scheme to
Martin and the other half to Simon, rather than cashing
out the interest and distributing the proceeds.

As Martin is a New Zealand tax resident and Mary’s
surviving spouse, the transfer to him is _________a taxable
event as it meets the requirements for rollover relief
under new section CF 3(3).
TIB Vol 26 No 4

Answer 100

not

Question 101

Example 4
Mary, her husband Martin, and their son Simon are
all New Zealand tax residents. Mary first acquired an
interest in a United Kingdom superannuation scheme
while she was non-resident.

Mary dies unexpectedly. In her will, Mary transfers half
of her interest in the UK superannuation scheme to
Martin and the other half to Simon, rather than cashing
out the interest and distributing the proceeds.

As Martin is a New Zealand tax resident and Mary’s
surviving spouse, the transfer to him is not a taxable
event as it meets the requirements for _______________
under new section CF 3(3).
TIB Vol 26 No 4

Answer 101

rollover relief

Question 102

Example 4
Mary, her husband Martin, and their son Simon are
all New Zealand tax residents. Mary first acquired an
interest in a United Kingdom superannuation scheme
while she was non-resident.

Mary dies unexpectedly. In her will, Mary transfers half
of her interest in the UK superannuation scheme to
Martin and the other half to Simon, rather than cashing
out the interest and distributing the proceeds.

As Martin is a New Zealand tax resident and Mary’s
___________, the transfer to him is rollover relief a taxable
event as it meets the requirements for rollover relief
under new section CF 3(3).
TIB Vol 26 No 4

Answer 102

surviving spouse

Question 103

Mary, her husband Martin, and their son Simon are
all New Zealand tax residents. Mary first acquired an
interest in a United Kingdom superannuation scheme
while she was non-resident.
Mary dies unexpectedly. In her will, Mary transfers half
of her interest in the UK superannuation scheme to
Martin and the other half to Simon, rather than cashing
out the interest and distributing the proceeds.
As Martin is a New Zealand tax resident and Mary’s
surviving spouse, the transfer to him is not a taxable
event as it meets the requirements for rollover relief
under new section CF 3(3).
Ten years later, Martin decides that he wants to transfer
the interest to a New Zealand scheme. This is a taxable
event for Martin under section CF 3(2)(b). Under
section CF 3(21)(d), the amount of the transfer that is
deemed to be assessable income will take into account
how long Mary was New Zealand-resident while ____________ before she died and it was transferred to Martin, as well as how long Martin has owned the
interest.
TIB Vol 26 No 4

Answer 103

Owning the interest

Question 104

Mary, her husband Martin, and their son Simon are
all New Zealand tax residents. Mary first acquired an
interest in a United Kingdom superannuation scheme
while she was non-resident.
Mary dies unexpectedly. In her will, Mary transfers half
of her interest in the UK superannuation scheme to
Martin and the other half to Simon, rather than cashing
out the interest and distributing the proceeds.
As Martin is a New Zealand tax resident and Mary’s
surviving spouse, the transfer to him is not a taxable
event as it meets the requirements for rollover relief
under new section CF 3(3).
Ten years later, Martin decides that he wants to transfer
the interest to a New Zealand scheme. This is a taxable
event for Martin under section CF 3(2)(b). Under
section CF 3(21)(d), the amount of the transfer that is
deemed to be assessable income will take into account
how long Mary was New Zealand-resident while owning
the _________before she died and it was transferred to Martin, as well as how long Martin has owned the ____________.

TIB Vol 26 No 4

Answer 104

Interest

Question 105

In contrast, Simon is not provided _____________
under section CF 3(3) as he is Mary’s son and not a
surviving spouse. This means that when the executor
of Mary’s estate transfers half of Mary’s interest in the
superannuation scheme to Simon, the transfer is a
taxable event under section CF 3(2)(d) and the amount
of the transfer that is deemed to be assessable income
will depend on how long Mary was New Zealand resident
while owning the interest before she died and
transferred it to Simon.
TIB Vol 26 No 4

Answer 105

rollover relief

Question 106

In contrast, Simon is not provided rollover relief
under section CF 3(3) as he is Mary’s son and not a
_____________. This means that when the executor
of Mary’s estate transfers half of Mary’s interest in the
superannuation scheme to Simon, the transfer is a
taxable event under section CF 3(2)(d) and the amount
of the transfer that is deemed to be assessable income
will depend on how long Mary was New Zealand resident
while owning the interest before she died and
transferred it to Simon.
TIB Vol 26 No 4

Answer 106

surviving spouse

Question 107

In contrast, Simon is not provided rollover relief
under section CF 3(3) as he is Mary’s son and not a
surviving spouse. This means that when the executor
of Mary’s estate transfers half of Mary’s interest in the
superannuation scheme to Simon, the transfer is a
taxable event under section CF 3(2)(d) and the amount
of the transfer that is deemed to be assessable income
will depend on how long Mary was New Zealand resident
while owning the interest before she died and
____________ it to Simon.
TIB Vol 26 No 4

Answer 107

transferred

Question 108

From the time that Simon acquires the interest, Simon
has a _________________ as Simon was already
New Zealand-resident when it was transferred to him This means that Simon needs to account for income
on an annual basis under the FIF rules. Five years after
he acquires the interest, Simon decides to transfer the
interest into a New Zealand scheme. Because Simon’s
superannuation interest has been taxed under the FIF
rules, he does not pay any tax on the transfer to the
New Zealand scheme.
TIB Vol 26 No 4

Answer 108

FIF superannuation interest

Question 109

From the time that Simon acquires the interest, Simon
has a FIF superannuation interest as Simon was already
New Zealand-resident when it was transferred to him This means that Simon needs to account for income
on an annual basis under the ____________. Five years after
he acquires the interest, Simon decides to transfer the
interest into a New Zealand scheme. Because Simon’s
superannuation interest has been taxed under the FIF
rules, he does not pay any tax on the transfer to the
New Zealand scheme.

Answer 109

FIF rules

Question 110

TIB Vol 26 No 4
From the time that Simon acquires the interest, Simon
has a FIF superannuation interest as Simon was already
New Zealand-resident when it was transferred to him This means that Simon needs to account for income
on an annual basis under the FIF rules. Five years after
he acquires the interest, Simon decides to transfer the
interest into a New Zealand scheme. Because Simon’s
superannuation interest has been taxed under the FIF
rules, he ______________ on the transfer to the
New Zealand scheme.
TIB Vol 26 No 4

Answer 110

does not pay any tax

Question 111

The exemption period is similar to the four-year tax-free
window provided by the pre-existing “transitional resident
rules” in section HR 8 of the Income Tax Act 2007. People
who are transitional residents are generally not subject
to tax on foreign income during the first four years of
New Zealand tax residence.
Unlike the transitional resident rules, section CF 3(5) does
not require a person to be non-tax resident for a minimum
period in order to qualify for an exemption period. The
exemption period is thus available to new migrants and
returning New Zealanders alike (as long as they satisfy the
overall requirement for section CF 3 that the interest in the
foreign superannuation was first acquired while non-tax
resident).
Also, _____________ the transitional resident rules, it is not possible
to opt out of the exemption period.

Answer 111

unlike

Question 112

window provided by the pre-existing “transitional resident
rules” in section HR 8 of the Income Tax Act 2007. People
who are transitional residents are generally not subject
to tax on foreign income during the first four years of
New Zealand tax residence.
Unlike the transitional resident rules, section CF 3(5) does
not require a person to be non-tax resident for a minimum
period in order to qualify for an exemption period. The
exemption period is thus available to new migrants and
returning New Zealanders alike (as long as they satisfy the
overall requirement for section CF 3 that the interest in the
foreign superannuation was first acquired while non-tax
resident).
Also, unlike _____________________, it is not possible
to opt out of the exemption period.
TIB Vol 26 No 4

Answer 112

transitional resident rules

Question 113

window provided by the pre-existing “transitional resident
rules” in section HR 8 of the Income Tax Act 2007. People
who are transitional residents are generally not subject
to tax on foreign income during the first four years of
New Zealand tax residence.
Unlike the transitional resident rules, section CF 3(5) does
not require a person to be non-tax resident for a minimum
period in order to qualify for an exemption period. The
exemption period is thus available to new migrants and
returning New Zealanders alike (as long as they satisfy the
overall requirement for section CF 3 that the interest in the
foreign superannuation was first acquired while non-tax
resident).
Also, unlike the transitional resident rules, it is not possible
to _____________ of the exemption period.
TIB Vol 26 No 4

Answer 113

opt out

Question 114

window provided by the pre-existing “transitional resident
rules” in section HR 8 of the Income Tax Act 2007. People
who are transitional residents are generally not subject
to tax on foreign income during the first four years of
New Zealand tax residence.
Unlike the transitional resident rules, section CF 3(5) does
not require a person to be non-tax resident for a minimum
period in order to qualify for an exemption period. The
exemption period is thus available to new migrants and
returning New Zealanders alike (as long as they satisfy the
overall requirement for section CF 3 that the interest in the
foreign superannuation was first acquired while non-tax
resident).
Also, unlike the transitional resident rules, it is not possible
to opt out of ___________________________.

Answer 114

the exemption period

Question 115

window provided by the pre-existing “transitional resident
rules” in section HR 8 of the Income Tax Act 2007. People
who are transitional residents are generally not subject
to tax on foreign income during the first four years of
New Zealand tax residence.
Unlike the transitional resident rules, section CF 3(5) does
not require a person to be non-tax resident for a minimum
period in order to qualify for an exemption period. The
exemption period is thus available to new migrants and
returning New Zealanders alike (as long as they satisfy the
overall requirement for section CF 3 that the interest in the
foreign superannuation was first acquired while non-tax
resident).
Also, unlike the transitional resident rules, it is not possible
________________________.
TIB Vol 26 No 4

Answer 115

to opt out of the exemption period

Question 116

Clearly lifestyle properties would also not be able to apply the ________________. Instead the principle residence exemption would need to be applied. This exemption, known as the main home exemption, exempts from the rule any property that is used as the principle residence of the owner. It is important to note that this exemption can only be used twice in a two year period
https://www.cooperaitken.co.nz/wp-content/uploads/2017/10/the_balance_sheet_Sept_2017-FINAL-2.pdf

Answer 116

farming exemption

Question 117

Clearly lifestyle properties would also not be able to apply the farming exemption. Instead the _________________ would need to be applied. This exemption, known as the main home exemption, exempts from the rule any property that is used as the principle residence of the owner. It is important to note that this exemption can only be used twice in a two year period
https://www.cooperaitken.co.nz/wp-content/uploads/2017/10/the_balance_sheet_Sept_2017-FINAL-2.pdf

Answer 117

principle residence exemption

Question 118

Clearly lifestyle properties would also not be able to apply the farming exemption. Instead the principle residence exemption would need to be applied. This exemption, known as the ___________, exempts from the rule any property that is used as the principle residence of the owner. It is important to note that this exemption can only be used twice in a two year period
https://www.cooperaitken.co.nz/wp-content/uploads/2017/10/the_balance_sheet_Sept_2017-FINAL-2.pdf

Answer 118

main home exemption

Question 119

Clearly lifestyle properties would also not be able to apply the farming exemption. Instead the principle residence exemption would need to be applied. This exemption, known as the main home exemption, exempts from the rule any property that is used as the ___________________. It is important to note that this exemption can only be used twice in a two year period
https://www.cooperaitken.co.nz/wp-content/uploads/2017/10/the_balance_sheet_Sept_2017-FINAL-2.pdf

Answer 119

principle residence of the owner

Question 120

In addition, a person who receives _________________________ still receives a full exemption period in relation to
their foreign superannuation interest.
TIB Vol 26 No 4

Answer 120

Working for Families tax credits

Question 121

In addition, a person who receives Working for Families tax
credits still receives a __________________ in relation to
their foreign superannuation interest.
TIB Vol 26 No 4

Answer 121

full exemption period

Question 122

In addition, a person who receives Working for Families tax
credits still receives a full exemption period in relation to
their ___________________________.
TIB Vol 26 No 4

Answer 122

foreign superannuation interest

Question 123

New sections CF 3(4)(b) and CW 28C provide that the part
of the lump sum that is not treated as assessable income
under the schedule method or formula method is ________________. The ______________ is not taken into account for
student loan or Working for Families tax credit purposes.
TIB Vol 26 No 4

Answer 123

Exempt income

Question 124

New sections CF 3(4)(b) and CW 28C provide that the part
of the lump sum that is not treated as assessable income
under the schedule method or formula method is exempt
income. The exempt income is not taken into account for
_________________ or Working for Families tax credit purposes.
TIB Vol 26 No 4

Answer 124

student loan

Question 125

New sections CF 3(4)(b) and CW 28C provide that the part
of the lump sum that is not treated as assessable income
under the schedule method or formula method is exempt
income. The exempt income is not taken into account for
student loan or _____________________ purposes.
TIB Vol 26 No 4

Answer 125

Working for Families tax credit

Question 126

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
First, the foreign superannuation scheme must be a foreign
defined contribution scheme for which a person has
______________ about the value of the scheme and
contributions made. A foreign defined contribution scheme
is defined in section YA 1 as a foreign superannuation scheme
that operates on the principle of allocating contributions to
the scheme on a defined basis to individual members.
TIB Vol 26 No 4

Answer 126

sufficient information

Question 127

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
First, the foreign superannuation scheme must be a foreign
defined contribution scheme for which a person has
sufficient information about the __________ of the scheme and
contributions made. A foreign defined contribution scheme
is defined in section YA 1 as a foreign superannuation scheme
that operates on the principle of allocating contributions to
the scheme on a defined basis to individual members.
TIB Vol 26 No 4

Answer 127

value of the scheme

Question 128

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
First, the foreign superannuation scheme must be a foreign
defined contribution scheme for which a person has
sufficient information about the value of the scheme and
____________. A foreign defined contribution scheme
is defined in section YA 1 as a foreign superannuation scheme
that operates on the principle of allocating contributions to
the scheme on a defined basis to individual members.
TIB Vol 26 No 4

Answer 128

contributions made

Question 129

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
In addition, a person must not have used the ____________ for a past lump sum received from that particular
interest, and must not have received a withdrawal (other
than a pension or an annuity) before 1 April 2014.
TIB Vol 26 No 4

Answer 129

Schedule method

Question 130

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
In addition, a person must not have used the schedule
method for a ________________ received from that particular
interest, and must not have received a withdrawal (other
than a pension or an annuity) before 1 April 2014.
TIB Vol 26 No 4

Answer 130

past lump sum

Question 131

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
In addition, a person must not have used the schedule
method for a past lump sum received from that particular
interest, and must not have _______________ (other
than a pension or an annuity) before 1 April 2014.
TIB Vol 26 No 4

Answer 131

received a withdrawal

Question 132

To be eligible to use the formula method the individual
must meet several criteria in relation to the interest.
In addition, a person must not have used the schedule
method for a past lump sum received from that particular
interest, and must not have received a withdrawal (other
than a pension or an annuity) before _________________.
TIB Vol 26 No 4

Answer 132

before 1 April 2014

Question 133

If the
person received their interest from a spouse, civil union
partner, or de facto partner, in a transaction referred to in
section CF 3(21)(d), another condition is that the person
who _______________ did not use the schedule
method in relation to the interest
TIB Vol 26 No 4

Answer 133

originally held the interest

Question 134

If the
person received their interest from a spouse, civil union
partner, or de facto partner, in a transaction referred to in
section CF 3(21)(d), another condition is that the person
who originally held the interest _______________ in relation to the interest
TIB Vol 26 No 4

Answer 134

did not use the schedule method

Question 135

Section __________________ of the ITA refers to someone acquiring the rights as a surviving spouse, civil union partner or defacto partner or as a former spouse, civil union partner or defacto partner.

Answer 135

CF 3 (21) (d)

Question 136

Section CF 3 (21) (d) of the ITA refers to someone acquiring the rights as a ________________, civil union partner or defacto partner or as a former spouse, civil union partner or defacto partner.

Answer 136

surviving spouse

Question 137

Section CF 3 (21) (d) of the ITA refers to someone acquiring the rights as a surviving spouse, civil union partner or defacto partner or as a _____________, civil union partner or defacto partner.

Answer 137

former spouse

Question 138

The tax liability arising under the ______________
essentially depends on how long the person has been a
New Zealand tax resident. It is calculated using the number
of income years beginning in the person’s assessable period.
TIB Vol 26 No 4

Answer 138

schedule method

Question 139

The tax liability arising under the schedule method
essentially depends on how long the person has been a
__________________. It is calculated using the number
of income years beginning in the person’s assessable period.
TIB Vol 26 No 4

Answer 139

New Zealand tax resident

Question 140

The interest factor in the _____________ method is calculated
using a person’s years of tax residence.
TIB Vol 26 No 4

Answer 140

formula

Question 141

The ______________ in the formula method is calculated
using a person’s years of tax residence.
TIB Vol 26 No 4

Answer 141

interest factor

Question 142

The interest factor in the formula method is calculated
using a person’s ________________.
TIB Vol 26 No 4

Answer 142

years of tax residence

Question 143

If the person has a four-year exemption period in relation to
their foreign superannuation interest (as described above),
their assessable period for that foreign superannuation
interest begins ______________ the exemption period ends. This
is provided for in new section CF 3(8)(a)(ii).
TIB Vol 26 No 4

Answer 143

as soon as

Question 144

If the person has a four-year exemption period in relation to
their foreign superannuation interest (as described above),
their assessable period for that foreign superannuation
interest begins as soon as the __________________. This
is provided for in new section CF 3(8)(a)(ii).
TIB Vol 26 No 4

Answer 144

exemption period ends

Question 145

If the person has a four-year exemption period in relation to
their foreign superannuation interest (as described above),
their assessable period for that foreign superannuation
interest begins ________________________. This
is provided for in new section CF 3(8)(a)(ii).
TIB Vol 26 No 4

Answer 145

as soon as the exemption period ends

Question 146

It is possible that a person could migrate to New Zealand
with a foreign superannuation interest, lose their
New Zealand tax residence, and then become tax resident
again. New Zealand does not generally aim to tax foreign sourced
income derived by non-tax residents. To ensure
that the schedule and formula methods do not contradict
this principle, new section CF 3(8)(c) provides that the
__________________ excludes periods of non-tax residence.
TIB Vol 26 No 4

Answer 146

assessable period

Question 147

It is possible that a person could migrate to New Zealand
with a foreign superannuation interest, lose their
New Zealand tax residence, and then become tax resident
again. New Zealand does not generally aim to tax foreign sourced
income derived by non-tax residents. To ensure
that the schedule and formula methods do not contradict
this principle, new section CF 3(8)(c) provides that the
assessable period _____________ periods of non-tax residence.
TIB Vol 26 No 4

Answer 147

excludes

Question 148

It is possible that a person could migrate to New Zealand
with a foreign superannuation interest, lose their
New Zealand tax residence, and then become tax resident
again. New Zealand does not generally aim to tax foreign sourced
income derived by non-tax residents. To ensure
that the schedule and formula methods do not contradict
this principle, new section CF 3(8)(c) provides that the
assessable period excludes ___________________.
TIB Vol 26 No 4

Answer 148

periods of non-tax residence

Question 149

It is possible that a person could migrate to New Zealand
with a foreign superannuation interest, lose their
New Zealand tax residence, and then become tax resident
again. New Zealand does not generally aim to tax foreign sourced
income derived by non-tax residents. To ensure
that the schedule and formula methods do not contradict
this principle, new section CF 3(8)(c) provides that the
________________________________________________.
TIB Vol 26 No 4

Answer 149

assessable period excludes periods of non-tax residence.

Question 150

Example 6
Brian’s exemption period ends on 30 September 2015.
His assessable period begins on _______________. Brian
leaves New Zealand and his last day as a New Zealand tax
resident is 27 March 2022. He becomes a New Zealand
tax resident again on 1 August 2027. Brian receives a
lump sum from his foreign superannuation scheme on
5 February 2029.
Brian’s assessable period is from 1 October 2016 until
5 February 2029, but excludes the period 28 March 2022
to 31 July 2027 (which is when he was non-resident).

Answer 150

1 October 2015

Question 151

Example 6
Brian’s exemption period ends on 30 September 2015.
His assessable period begins on 1 October 2015. Brian
leaves New Zealand and his last day as a New Zealand tax
resident is 27 March 2022. He becomes a New Zealand
tax resident again on 1 August 2027. Brian receives a
lump sum from his foreign superannuation scheme on
5 February 2029.
Brian’s assessable period is from 1 October 2016 until
5 February _____, but excludes the period 28 March 2022
to 31 July 2027 (which is when he was non-resident).
TIB Vol 26 No 4

Answer 151

2029

Question 152

Brian’s exemption period ends on 30 September 2015.
His assessable period begins on 1 October 2015. Brian
leaves New Zealand and his last day as a New Zealand tax
resident is 27 March 2022. He becomes a New Zealand
tax resident again on 1 August 2027. Brian receives a
lump sum from his foreign superannuation scheme on
5 February 2029.
Brian’s assessable period is from 1 October 2016 until
5 February 2029, but _____________ the period 28 March 2022
to 31 July 2027 (which is when he was non-resident).
TIB Vol 26 No 4

Answer 152

excludes

Question 153

The “_________________________” item in the formula for the schedule method, is a deduction
for contributions made for or on behalf of a person
while the person is a New Zealand tax resident, if the
contributions satisfy certain conditions. The schedule
method may otherwise treat some of the New Zealand
contributions as gains would result in over-taxation.
TIB Vol 26 No 4

Answer 153

contributions left

Question 154

The “contributions left” item in the formula for the schedule method, is a deduction
for ____________________ for or on behalf of a person
while the person is a New Zealand tax resident, if the
contributions satisfy certain conditions. The schedule
method may otherwise treat some of the New Zealand
contributions as gains would result in over-taxation.
TIB Vol 26 No 4

Answer 154

contributions made

Question 155

The “contributions left” item in the formula for the schedule method, is a deduction
for contributions made for or on behalf of a person
______________________________, if the
contributions satisfy certain conditions. The schedule
method may otherwise treat some of the New Zealand
contributions as gains would result in over-taxation.
TIB Vol 26 No 4

Answer 155

while the person is a New Zealand tax resident

Question 156

New section CF 3(19) provides that all of the following
conditions must be met:
• at the time the contribution is made, the person must be
a New Zealand resident under section YD 1 and treated
as a New Zealand resident under all applicable double tax agreements;
• the contribution is made by the person, or the person’s
employer, or for the benefit of the person;
• the contribution _________________ under the rules of
the foreign superannuation scheme (that is, voluntary
contributions cannot be deducted); and
• employer contributions must be subject to employer
superannuation contribution tax or fringe benefit tax.
TIB Vol 26 No 4

Answer 156

must be required

Question 157

New section CF 3(19) provides that all of the following
conditions must be met:
• at the time the contribution is made, the person must be
a New Zealand resident under section YD 1 and treated
as a New Zealand resident under all applicable double tax agreements;
• the contribution is made by the person, or the person’s
employer, or for the benefit of the person;
• the contribution must be required under the ___________________________ (that is, voluntary
contributions cannot be deducted); and
• employer contributions must be subject to employer
superannuation contribution tax or fringe benefit tax.
TIB Vol 26 No 4

Answer 157

rules of the foreign superannuation scheme

Question 158

New section CF 3(19) provides that all of the following
conditions must be met:
• at the time the contribution is made, the person must be
a New Zealand resident under section YD 1 and treated
as a New Zealand resident under all applicable double tax agreements;
• the contribution is made by the person, or the person’s
employer, or for the benefit of the person;
• the contribution must be required under the rules of
the foreign superannuation scheme (that is, _________________________); and
• employer contributions must be subject to employer
superannuation contribution tax or fringe benefit tax.
TIB Vol 26 No 4

Answer 158

Voluntary contributions cannot be deducted

Question 159

New section CF 3(19) provides that all of the following
conditions must be met:
• at the time the contribution is made, the person must be
a New Zealand resident under section YD 1 and treated
as a New Zealand resident under all applicable double tax agreements;
• the contribution is made by the person, or the person’s
employer, or for the benefit of the person;
• the contribution must be required under the rules of
the foreign superannuation scheme (that is, voluntary
contributions cannot be deducted); and
• employer contributions must be subject to ___________________________.
TIB Vol 26 No 4

Answer 159

Employer superannuation contribution tax or fringe benefit tax

Question 160

The fractions in new schedule _____ are set at the rate
necessary to put a person who leaves their foreign
superannuation overseas in the same position as if they had
instead transferred their superannuation to New Zealand
when they first became tax-resident and paid tax on
investment gains as they accrued in a KiwiSaver or bank
account, for example.
TIB Vol 26 No 4

Answer 160

33

Question 161

Contributions that can be deducted are restricted in this
manner because the schedule rates already include an
______________________ for contributions. For example, for the
year one schedule rate, 4.76% of the withdrawal is treated
as taxable New Zealand-sourced gains and the remainder is
treated as non-taxable. The non-taxable portion includes
contributions as well as gains derived while non-resident.
TIB Vol 26 No 4

Answer 161

implicit allowance

Question 162

Contributions that can be deducted are restricted in this
manner because the schedule rates already include an
implicit allowance ___________________. For example, for the
year one schedule rate, 4.76% of the withdrawal is treated
as taxable New Zealand-sourced gains and the remainder is
treated as non-taxable. The non-taxable portion includes
contributions as well as gains derived while non-resident.
TIB Vol 26 No 4

Answer 162

for contributions

Question 163

Contributions that can be deducted are restricted in this
manner because the schedule rates already include an
____________________________. For example, for the
year one schedule rate, 4.76% of the withdrawal is treated
as taxable New Zealand-sourced gains and the remainder is
treated as non-taxable. The non-taxable portion includes
contributions as well as gains derived while non-resident.
TIB Vol 26 No 4

Answer 163

implicit allowance for contributions

Question 164

Contributions that can be deducted are restricted in this
manner because the schedule rates already include an
implicit allowance for contributions. For example, for the
year one schedule rate, 4.76% of the withdrawal is treated
as taxable New Zealand-sourced gains and the remainder is
treated as non-taxable. The non-taxable portion includes
_________________ as well as gains derived while non-resident.

Answer 164

contributions

Question 165

Contributions that can be deducted are restricted in this
manner because the schedule rates already include an
implicit allowance for contributions. For example, for the
year one schedule rate, 4.76% of the withdrawal is treated
as taxable New Zealand-sourced gains and the remainder is
treated as non-taxable. The non-taxable portion includes
contributions as well as ________________________.

Answer 165

gains derived while non-resident

Question 166

After a period spent working overseas, Dan returned
to New Zealand with an interest in a foreign
superannuation scheme and acquired a permanent
place of abode on 28 June 2012. Dan’s exemption period
begins on 28 June 2012 and ends on 30 June 2016. Dan’s
assessable period starts on _____________.
He withdraws a lump sum of $50,000 on 27 January
2020. There are three income years that begin in Dan’s
assessable period: the years beginning 1 April 2017 (2018
income year), 1 April 2018 (2019 income year), and
1 April 2019 (2020 income year).
Dan is therefore required to use the schedule year
fraction for year three. The corresponding schedule
year fraction is 14.06%, so his assessable income is $7,030
(being $50,000 × 14.06%).
Dan includes $7,030 as income in his 2020 income tax
return. His marginal tax rate is applied to this amount,
rather than the full amount of the lump-sum withdrawal
TIB Vol 26 No 4

Answer 166

1 July 2016

Question 167

After a period spent working overseas, Dan returned
to New Zealand with an interest in a foreign
superannuation scheme and acquired a permanent
place of abode on 28 June 2012. Dan’s exemption period
begins on 28 June 2012 and ends on 30 June 2016. Dan’s
assessable period starts on 1 July 2016.
He withdraws a lump sum of $50,000 on 27 January
2020. There are three income years that begin in Dan’s
assessable period: the years beginning ____________ (2018
income year), 1 April 2018 (2019 income year), and
1 April 2019 (2020 income year).
Dan is therefore required to use the schedule year
fraction for year three. The corresponding schedule
year fraction is 14.06%, so his assessable income is $7,030
(being $50,000 × 14.06%).
Dan includes $7,030 as income in his 2020 income tax
return. His marginal tax rate is applied to this amount,
rather than the full amount of the lump-sum withdrawal
TIB Vol 26 No 4

Answer 167

1 April 2017

Question 168

After a period spent working overseas, Dan returned
to New Zealand with an interest in a foreign
superannuation scheme and acquired a permanent
place of abode on 28 June 2012. Dan’s exemption period
begins on 28 June 2012 and ends on 30 June 2016. Dan’s
assessable period starts on 1 July 2016.
He withdraws a lump sum of $50,000 on 27 January
2020. There are three income years that begin in Dan’s
assessable period: the years beginning 1 April 2017 (2018
income year), 1 April 2018 (2019 income year), and
1 April 2019 (2020 income year).
Dan is therefore required to use the schedule year
fraction for year ___________. The corresponding schedule
year fraction is 14.06%, so his assessable income is $7,030
(being $50,000 × 14.06%).
Dan includes $7,030 as income in his 2020 income tax
return. His marginal tax rate is applied to this amount,
rather than the full amount of the lump-sum withdrawal
TIB Vol 26 No 4

Answer 168

three

Question 169

If the number of income years beginning in a person’s
assessable period is zero when a person receives a lump sum
(that is, they receive the lump sum during the part-year in
which their __________________ starts but before the start of
the next income year), the person should use the schedule
year fraction associated with year one.

TIB Vol 26 No 4

Answer 169

assessable period

Question 170

If the number of income years beginning in a person’s
assessable period is zero when a person receives a lump sum
(that is, they receive the lump sum during the part-year in
which their assessable period starts but before the start of
the _______________), the person should use the schedule
year fraction associated with year one.

TIB Vol 26 No 4

Answer 170

next income year

Question 171

If the number of income years beginning in a person’s
assessable period is zero when a person receives a lump sum
(that is, they receive the lump sum during the part-year in
which their assessable period starts but before the start of
the next income year), the person should use the schedule
year fraction associated with ___________.

TIB Vol 26 No 4

Answer 171

year one

Question 172

Example 10
Melanie’s assessable period begins on 1 October 2014.
She withdraws a lump sum of $50,000 on 5 February
2015, which means that an income year has not yet
started during her assessable period.

Melanie is required to use the schedule year fraction for
____________ because the withdrawal was made between
1 October 2014 and 31 March 2015. The corresponding
schedule fraction is 4.76%, so her assessable income is
$2,380 (being $50,000 × 4.76%). Assuming Melanie’s tax
rate is 33% (which is the top personal marginal tax rate
for the 2014–15 income year), she is liable to pay $785.40
of tax on her $50,000 lump-sum withdrawal.
TIB Vol 26 No 4

Answer 172

year one

Question 173

Example 11
Ruby migrated to New Zealand with an interest in
a foreign superannuation scheme and became a
New Zealand tax resident on 25 November 2008 when
she obtained a permanent place of abode. Her exemption
period is 25 November 2008 to 30 November 2012 and
her assessable period begins on 1 December 2012.
 
On 6 May 2018, Ruby transfers her foreign superannuation
scheme into a New Zealand scheme and the transfer
equates to $100,000.
Ruby has been treated as New Zealand-resident under all
applicable double tax agreements since early 2009.
The rules of Ruby’s foreign superannuation scheme
require that she continues to contribute a certain
amount to the scheme each year. The amount she is
required to contribute during her exemption period
amounts to $2,000. The amount she is required to
contribute during her assessable period before the
transfer is $3,000. Ruby decides to contribute an
additional $500 to the scheme during her assessable
period, which was not required by the scheme.
Ruby uses the schedule method to calculate how much
of her transfer she needs to include in her 2019 income
tax return.
Ruby’s assessable period in relation to the transfer is
1 December 2012 to 6 May 2018. The number of income
years beginning in her assessable period is six, so Ruby
must use the schedule year fraction of 27.47%.
The $2,000 of contributions made during her exemption
period are ____________ as one of the requirements for
a contribution to be deductible is that they are made
during the assessable period before the distribution
time. The $3,000 of contributions are deductible as
they meet the requirements in sections CF 3(11)(b) and
CF 3(19) that they were made during Ruby’s assessable
period, they were required by the rules of the scheme,
they were made by Ruby, and Ruby was treated as a
New Zealand tax resident under all applicable double tax
agreements when they were made. The additional $500
she contributed is not deductible as it was a voluntary
contribution.
Ruby calculates her assessable withdrawal amount as
follows:
($100,000 − $3,000) × 27.47% = $26,645.90
Ruby includes $26,645.90 as income in her 2019 income
tax return and pays tax at her marginal tax rate on this amount.
TIB Vol 26 No 4

Answer 173

not deductible

Question 174

Example 11
Ruby migrated to New Zealand with an interest in
a foreign superannuation scheme and became a
New Zealand tax resident on 25 November 2008 when
she obtained a permanent place of abode. Her exemption
period is 25 November 2008 to 30 November 2012 and
her assessable period begins on 1 December 2012.
 
On 6 May 2018, Ruby transfers her foreign superannuation
scheme into a New Zealand scheme and the transfer
equates to $100,000.
Ruby has been treated as New Zealand-resident under all
applicable double tax agreements since early 2009.
The rules of Ruby’s foreign superannuation scheme
require that she continues to contribute a certain
amount to the scheme each year. The amount she is
required to contribute during her exemption period
amounts to $2,000. The amount she is required to
contribute during her assessable period before the
transfer is $3,000. Ruby decides to contribute an
additional $500 to the scheme during her assessable
period, which was not required by the scheme.
Ruby uses the schedule method to calculate how much
of her transfer she needs to include in her 2019 income
tax return.
Ruby’s assessable period in relation to the transfer is
1 December 2012 to 6 May 2018. The number of income
years beginning in her assessable period is six, so Ruby
must use the schedule year fraction of 27.47%.
The $2,000 of contributions made during her exemption
period are not deductible as one of the requirements for
a contribution to be deductible is that they are made
during the ________________ before the distribution
time. The $3,000 of contributions are deductible as
they meet the requirements in sections CF 3(11)(b) and
CF 3(19) that they were made during Ruby’s assessable
period, they were required by the rules of the scheme,
they were made by Ruby, and Ruby was treated as a
New Zealand tax resident under all applicable double tax
agreements when they were made. The additional $500
she contributed is not deductible as it was a voluntary
contribution.
Ruby calculates her assessable withdrawal amount as
follows:
($100,000 − $3,000) × 27.47% = $26,645.90
Ruby includes $26,645.90 as income in her 2019 income
tax return and pays tax at her marginal tax rate on this amount.
TIB Vol 26 No 4

Answer 174

assessable period

Question 175

To use the formula method, a person is required to obtain
The _________________ of the foreign superannuation interest at
the time the exemption period ends, as well as information
about contributions made and other necessary information.
Requirements relating to the quality of information also apply

Answer 175

TIB Vol 26 No 4

market value

Question 176

To use the formula method, a person is required to obtain
the market value of the ________________________ at
the time the exemption period ends, as well as information
about contributions made and other necessary information.
Requirements relating to the quality of information also apply.

TIB Vol 26 No 4

Answer 176

foreign superannuation interest

Question 177

To use the formula method, a person is required to obtain
the ________________________________ at
the time the exemption period ends, as well as information
about contributions made and other necessary information.
Requirements relating to the quality of information also apply.

TIB Vol 26 No 4

Answer 177

market value of the foreign superannuation interest

Question 178

To use the formula method, a person is required to obtain
the market value of the foreign superannuation interest at
the time the __________________, as well as information
about contributions made and other necessary information.
Requirements relating to the quality of information also apply.

TIB Vol 26 No 4

Answer 178

exemption period ends

Question 179

To use the formula method, a person is required to obtain
the market value of the foreign superannuation interest at
the time the exemption period ends, as well as information
about ______________ and other necessary information.
Requirements relating to the quality of information also apply.

TIB Vol 26 No 4

Answer 179

contributions made

Question 180

The necessary calculations for the ___________ begin
with new section CF 3(12):
distributed gain = (super withdrawal × calculated gains
fraction) − other gains

Vol 26 No 4

Answer 180

formula method

Question 181

The necessary calculations for the formula method begin
with new section __________:
distributed gain = (super withdrawal × calculated gains
fraction) − other gains

Vol 26 No 4

Answer 181

CF 3(12)

Question 182

The necessary calculations for the formula method begin
with new section CF 3(12):
_______________________ = (super withdrawal × calculated gains
fraction) − other gains

Vol 26 No 4

Answer 182

distributed gain

Question 183

The necessary calculations for the formula method begin
with new section CF 3(12):
distributed gain ___ (super withdrawal × calculated gains
fraction) − other gains

Vol 26 No 4

Answer 183

=

Question 184

The necessary calculations for the formula method begin
with new section CF 3(12):
distributed gain = (___________________× calculated gains
fraction) − other gains

Vol 26 No 4

Answer 184

super withdrawal

Question 185

The necessary calculations for the formula method begin
with new section CF 3(12):
distributed gain = (super withdrawal × calculated gains
fraction) − other gains

Vol 26 No 4

Answer 185

×

Question 186

The necessary calculations for the formula method begin
with new section CF 3(12):
distributed gain = (super withdrawal × ___________________) − other gains

Vol 26 No 4

Answer 186

calculated gains fraction

Question 187

The necessary calculations for the formula method begin
with new section CF 3(12):
distributed gain = (super withdrawal × calculated gains fraction) ___ other gains

Vol 26 No 4

Answer 187

-

Question 188

The necessary calculations for the formula method begin with new section CF 3(12):

distributed gain = (super withdrawal × calculated gains fraction) – _________________.

Vol 26 No 4

Answer 188

other gains

Question 189

The necessary calculations for the formula method begin with new section CF 3(12):

distributed gain = (______________________________) – other gains.

Vol 26 No 4

Answer 189

super withdrawal × calculated gains fraction

Question 190

The necessary calculations for the formula method begin with new section CF 3(12):

__________________________________________________.

Vol 26 No 4

Answer 190

distributed gain = (super withdrawal × calculated gains fraction) – other gains.