Section CZ 10 — Income Tax Act 2007: Transitional relief for calculation of attributed repatriation dividends: 2 July 1992

CZ 10 Transitional relief for calculation of attributed repatriation dividends: 2 July 1992 Loans made by CFC to intermediary before 2 July 1992 (1) Subsection (2) applies for the purposes of calculating attributed repatriation from a controlled foreign company (CFC) to the extent to which— (a) the CFC made a loan before 8.00 pm New Zealand standard time on 2 July 1992; and (b) the loan enabled another person (the intermediary ) to make a loan to a New Zealand resident associated with the CFC; and (c) the loan is not a loan that is an arrangement subject to section GB 8 (Arrangements involving attributed repatriation from CFCs); and (d) the New Zealand resident associated person repays the intermediary and the intermediary repays the CFC; and (e) the CFC uses the proceeds to make a loan directly to the New Zealand resident associated person. Loan to associate: treated as existing for whole accounting period (2) The loan to the New Zealand resident associated person is treated as if it were in existence at the start of the accounting period of the CFC in which it is in fact made. Property acquired under contract binding before 2 July 1992 (3) Subsection (4) applies for the purposes of calculating attributed repatriation from a CFC if the CFC— (a) acquires any property (including an amount accruing on a financial arrangement) under a binding contract entered into before 8.00 pm New Zealand standard time on 2 July 1992; and (b) the acquisition is not as a result of any voluntary action taken by the CFC after that time. Acquired property: treated as existing for whole accounting period (4) The property is treated as if it were held by the CFC at the start of the accounting period of the CFC in which it is in fact acquired. Defined in this Act: accounting period , arrangement , associated person , attributed repatriation , CFC , controlled foreign company , financial arrangement , New Zealand , New Zealand resident , pay , Compare: 2004 No 35 s CZ 10