Section CD 23 — Income Tax Act 2007: Ordering rule and slice rule

CD 23 Ordering rule and slice rule Ordering rule (1) Under the ordering rule , the available subscribed capital per share is calculated for a share using the formula— available subscribed capital of class shares being cancelled of class. Definition of items in formula (2) In the formula in subsection (1),— (a) available subscribed capital of class is the available subscribed capital, of all shares of the same class as the share, at the relevant time for the calculation: (b) shares being cancelled of class is the number of shares of the same class as the share, including the share, being cancelled at the time. Slice rule (3) Under the slice rule , the available subscribed capital per share is calculated for a share using the formula— available subscribed capital of class shares of class. Definition of items in formula (4) In the formula in subsection (3),— (a) available subscribed capital of class is the available subscribed capital, of all shares of the same class as the share, at the relevant time for the calculation: (b) shares of class is the number of shares of the same class as the share, including the share, on issue at the time. Amount when foreign company information inadequate (5) Despite subsections (2) to (4), the available subscribed capital per share calculated under the ordering rule is zero if— (a) the company is not resident in New Zealand; and (b) the relevant shareholder cannot obtain sufficient information to calculate the actual available subscribed capital per share using the relevant rule. Defined in this Act: available subscribed capital , cancellation , foreign company , ordering rule , resident in New Zealand , share , shareholder , shares of the same class , slice rule Compare: 2004 No 35 s CD 15