Section CU 18 — Income Tax Act 2007: Amount treated as repayment for purposes of section CU 17: excess

CU 18 Amount treated as repayment for purposes of section CU 17: excess When this section applies (1) This section applies when,— (a) in an income year, a holding company of a mining company is allowed, under section DU 12 (Amount written off by holding company) or an earlier Act, a deduction for an amount it has written off a loan it made to the mining company; and (b) in a later income year, the holding company disposes of shares in the mining company or an interest in shares in the mining company; and (c) the holding company has an excess amount because the amount it derives from the disposal is more than the amount paid up in cash on the shares. Repayment amount (2) For the purposes of section CU 17 , the excess amount is treated as repayment by the mining company of the amount written off. Defined in this Act: amount , deduction , holding company , income year , loan , mining company , pay , share , Compare: 2004 No 35 s CU 18