Section DV 17 — Income Tax Act 2007: Consolidated groups: expenditure or loss incurred by group companies

DV 17 Consolidated groups: expenditure or loss incurred by group companies When this section applies (1) This section results from sections FM 11 and FM 12 (which relate to expenditure or loss incurred by group companies). Deduction allowed: nexus with income derivation (2) To the extent set out in section FM 11 , if the consolidated group would be allowed a deduction for an item of expenditure or loss as 1 company because of a nexus between the expenditure and the income or carrying on of a business by another group company, a company that is part of the consolidated group is allowed a deduction. No deduction except for interest on money borrowed (3) To the extent set out in section FM 12 , if the consolidated group would be denied a deduction for an item of expenditure or loss as 1 company, a company that is part of the consolidated group is denied a deduction, except for an amount of expenditure or loss that is interest on money borrowed by the company from a group company in the circumstances described in that section. Link with subpart DA (4) Subsection (2) supplements the general permission, and the general limitations still apply. Subsection (3) overrides the general permission. Defined in this Act: amount , arrangement , company , consolidated group , deduction , depreciation loss , general permission , loss , pay , Compare: 2004 No 35 s HB 2(1)(c)