Section CD 38 — Income Tax Act 2007: General calculation rule for transfers of value

CD 38 General calculation rule for transfers of value Difference in value (1) The amount of a dividend that is a transfer of value from a company to a person is calculated using the formula— value from company − value from person. Definition of items in formula (2) In the formula,— (a) value from company is the market value of the money or money’s worth that the company provides to the person: (b) value from person — (i) is the market value of the money or money’s worth, if any, that the person provides to the company as consideration for the transfer; and (ii) excludes any amount that is attributable merely to the holding or giving up of rights as a shareholder in the company. Relationship with sections CD 39 to CD 42 (3) This section is overridden by sections CD 39 to CD 42 . Defined in this Act: amount , company , dividend , shareholder , transfer of value Compare: 2004 No 35 s CD 27