22 MAY NEW ZEALAND GAZETTE 1193

attributable to the excepted financial arrangement component of any Capital Note.

7. Examples:

Any reference in the following examples to the quantum of any Cash Redemption Amount and the value of Telecom Shares issued is illustrative only.

Example 1

Investor A notifies TCNZ Finance that Investor A wishes to redeem $5,000 of Capital Notes.

TCNZ Finance elects to redeem the Capital Notes by procuring the issue of Telecom Shares rather than for cash. The Capital Notes to be redeemed for Telecom Shares have a Cash Redemption Amount of $5,400 (being the principal amount of the Capital Notes ($5,000) and accrued interest, less any withholding taxes ($400)).

Investor A receives Telecom Shares in accordance with the formula prescribed in Schedule 2 of the Capital Notes Trust Deed. For the purposes of this example those shares are assumed to have a market value of $5,600 on the date that the Capital Notes are redeemed.

In accordance with the method prescribed in paragraph 6 of this determination, for both Investor A and for TCNZ Finance, the amount solely attributable to the excepted financial arrangement is:-

$5,600 (being the market value of the shares) – $5,400 (being the Cash Redemption Amount) = $200 (being the amount solely attributable to the excepted financial arrangement)

Therefore, where TCNZ Finance elects to redeem the Capital Notes by procuring the issue of Telecom Shares, the result for both TCNZ Finance and Investor A is that the relevant amount required to be included in calculating the gross income, or expenditure for the purposes of the qualified accruals rules, in respect of those Capital Notes redeemed for Telecom Shares, is the Cash Redemption Amount.

Example 2

Investor B notifies TCNZ Finance that Investor B wishes to redeem $5,000 of Capital Notes.

Of the $5,000 Capital Notes to be redeemed, TCNZ Finance elects to redeem $2,000 of the Capital Notes by procuring the issue of Telecom Shares rather than for cash. The Capital Notes to be redeemed for Telecom Shares have a Cash Redemption Amount of $2,200 (being the principal amount of those Capital Notes ($2,000) and accrued interest, less any withholding taxes, in respect of those Capital Notes ($200)).

Investor B receives Telecom Shares in accordance with the formula prescribed in Schedule 2 of the Capital Notes Trust Deed. For the purposes of this example those shares are assumed to have a market value of $2,300 on the date that the Capital Notes are redeemed.

In accordance with the method prescribed in paragraph 6 of this determination, for both Investor B and for TCNZ Finance, the amount solely attributable to the excepted financial arrangement is:-

$2,300 (being the market value of the shares) – $2,200 (being the Cash Redemption Amount) = $100 (being the amount solely attributable to the excepted financial arrangement)

Therefore, where TCNZ Finance elects to redeem some of the Capital Notes by procuring the issue of Telecom Shares, the result for both TCNZ Finance and Investor B is that the relevant amount required to be included in calculating the gross income, or expenditure for the purposes of the qualified accruals rules in respect of those Capital Notes redeemed for Telecom Shares, is the Cash Redemption Amount.

This determination is signed by me on the 12th day of May 1997.

MARTIN SMITH, General Manager (Adjudication & Rulings).

Justice

Accident Compensation Act 1982

Accident Compensation Appeal Authority Appointed

Pursuant to section 103 of the Accident Compensation Act 1982, and section 152 of the Accident Rehabilitation and Compensation Insurance Act 1992, His Excellency the Governor-General of New Zealand has been pleased to appoint

David Anthony Ongley, District Court Judge of Wellington

as a member of the Accident Compensation Appeal Authority for a term of 3 years on and from the date hereof.

Dated at Wellington this 8th day of May 1997.

D. A. M. GRAHAM, Minister of Justice.

Coroners Act 1988

Coroner Appointed

Pursuant to section 32 of the Coroners Act 1988, His Excellency the Governor-General of New Zealand has been pleased to appoint

Charles Edward Graham, barrister and solicitor of Matamata

to be a coroner for New Zealand.

Dated at Wellington this 1st day of May 1997.

D. A. M. GRAHAM, Minister of Justice.