3 MARCH

NEW ZEALAND GAZETTE

13 April 1994 ... $5.00
13 October 1994 ... $5.00

(a) Year Ended 31 March 1993

Apportionment of coupon payment due on 13/4/93.

There are a total of 151 days in the first period. Of these, 138 are in the Income Year ended 31 March 1993.

138/151 × $4.15 Income/Expenditure $3.79

(b) Year Ended 31 March 1994

Apportionment of coupon payment due on 13/4/94.

There are a total of 151 days in the first period. Of these, 13 are in the year ended 31 March 1994.

13/151 × $4.15 $0.36

Coupon Payment due on 13/10/93 $5.00
Apportionment of coupon payment due on 13/4/94.

There are a total of 182 days in the period between payments. Of these, 169 are in the year ended 31 March 1994.

169/182 × $5.00 $4.64

Income/Expenditure $10.00

(c) Year Ended 31 March 1995

As the Note matures in this year the base price adjustment (section 64F of the Act) is required. The formula a – (b + c) is applied:

a = sum of all amounts paid ($19.15)
b = acquisition price
hence in this example “b” has a value of zero.
c = income/expenditure in previous years ($13.79).

Income/Expenditure = a – (b + c)
= $19.15 – (0 + $13.79)
= $5.36

EXAMPLE C

The original holder of the Note described in Example B sells the Note on 20 December 1992, for $120, to a new holder who holds the Note to maturity. The sale of the Note takes place part way through an interest period, so it is necessary to apportion the Coupon Interest Payment between the seller and the purchaser.

The Coupon Interest Payment for this period amounts to $4.15. Using a straight-line apportionment, $1.01 of the $4.15 is attributable to that portion of the period ending 20 December 1992 during which the Note is owned by the original holder ($4.15 × 37/151). There are 151 days in the coupon period, and there are 37 days from the beginning of the period until the day that the Note is sold.) This amount of $1.01 is income to the original holder and acquisition price to the new holder. The original holder would be considered to have sold the equity portion of the convertible Note for $118.99.

(a) Income for the Original Holder: Year Ended 31 March 1993

Since this is the final year of the arrangement from the point of view of the original holder, the base price adjustment is applied, using the following values:

a = the sum of all amounts paid ($1.01)
b = acquisition price
c = income/expenditure in previous years ($0)

Income = a – (b + c)
= $1.01 – (0 + 0)
= $1.01

(b) Income for the New Holder: Year Ended 31 March 1993

Apportionment of coupon payment 13/4/93.

There are a total of 151 days in the first period. Of these, 138 are in the year ended 31 March 1993.

138/151 × $4.15 $3.79
From this, the holder can subtract the acquisition price
Income/Expenditure $2.78

(b) Year Ended 31 March 1994

As for Example B.
Income $10.00

(c) Year Ended 31 March 1995

As the Note matures in this year the base price adjustment (section 64f of the Act) is required. The formula a – (b + c) is applied:

a = the sum of all amounts paid ($19.15)
b = acquisition price ($1.01)
c = income/expenditure in previous years ($12.78)

Income/Expenditure = a – (b + c)
= $19.15 – ($1.01 + $12.78)
= $5.36

This determination is signed by me on the 18th day of February in the year 1994.

P. BARRAND, Deputy Commissioner of Inland Revenue.

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Internal Affairs

Local Government Act 1974

Palmerston North Boundary Extension Bylaw Confirmed

The following certificate has been executed on a copy of the Palmerston North Boundary Extension Bylaw made by Special Order of The Palmerston North City Council on 29 October 1991 and confirmed at a subsequent council meeting on 25 November 1991.

Dated this 22nd day of February 1994.

JOHN BANKS, Minister of Local Government.

Certificate of Confirmation

Pursuant to the Bylaws Act 1910, I hereby confirm the Palmerston North Boundary Extension Bylaw and declare that the same came into force on 3 December 1991.

Signed at Wellington this 22nd day of February 1994.

JOHN BANKS, Minister of Local Government.

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