The Issues Log

Section / Provision Income Tax Act 2004

CD 33

Date Received

1.s CD 33 does not specify application of "capital gain amount": should it link to defn of "capital gains"?  2.Ss (7)(b): should be cap gain incl gift - like '94 s CF(7)(b)- so capital compensation (van den berghs case) and insurance included as well as a gift.

CF (3)(7)

•  The Panel considers that there is no unintended legislative change in section CD 33(2)(c).

•  The Panel considers that the application of "capital gain amount" can be implied from the current definition of "capital gains". However, the Panel has asked Inland Revenue to consider clarifying the legislation by inserting the word "amounts" in the definition of "capital gains" in section CD 33(2)(c).

•  The Panel agreed there is a potential unintended legislative change in relation to the definition of "capital gain amount" in sections CD 33(5) to (8) of the 2004 Act, as they are narrower than the undefined term "capital gain" in section CF 3(7)(b) of the 1994 Act.

•  The Panel recommends that a general provision should be inserted in section CD 33 of the 2004 Act in order to cover all capital gains, such as capital compensation, insurance and other non-specified capital gains.