Section DB 54B — Income Tax Act 2007: Expenditure incurred by foreign investment PIEs

DB 54B Expenditure incurred by foreign investment PIEs When this section applies (1) This section applies when a foreign investment PIE incurs expenditure or loss in deriving income attributable to— (a) a notified foreign investor in the PIE: (b) a transitional resident who has chosen under section HM 55D(9) (Requirements for investors in foreign investment PIEs) to use the specified prescribed investor rate. No deduction (2) The PIE is denied a deduction for the amount of the expenditure or loss. Relationship with section DB 7 (3) This section overrides section DB 7 (Interest: most companies need no nexus with income). Link with subpart DA (4) This section overrides the general permission. Defined in this Act: amount , deduction , foreign investment PIE , general permission , income , loss , notified foreign investor , prescribed investor rate , transitional resident Section DB 54B: inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 16(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section DB 54B(1): replaced, on 2 November 2012, by section 22(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section DB 54B list of defined terms prescribed investor rate : inserted, on 2 November 2012, by section 22(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section DB 54B list of defined terms transitional resident : inserted, on 2 November 2012, by section 22(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).