Section DV 6 — Income Tax Act 2007: Formula for calculating maximum deduction

DV 6 Formula for calculating maximum deduction Formula used to calculate maximum deduction (1) The formula referred to in section DV 5(7) is— taxable income − non-resident passive income. Definition of items in formula (2) The items in the formula are defined in subsections (3) and (4). Taxable income (3) Taxable income is the amount that would be the master fund’s taxable income in the tax year in which the expenditure is transferred in the absence of sections DV 5 to DV 7 . Non-resident passive income (4) Non-resident passive income is the total of any amounts of non-resident passive income of any of the kinds to which section RF 2(5) (Non-resident passive income) applies derived by the master fund in the corresponding income year in which the expenditure is incurred. Multi-rate PIEs (5) This section does not apply to an amount of expenditure transferred to a master fund that is a multi-rate PIE. Defined in this Act: amount , corresponding income year , deduction , master fund , multi-rate PIE , non-resident passive income , taxable income , Compare: 2004 No 35 s DV 6 Section DV 6(5) heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 106(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section DV 6(5): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 106(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section DV 6 list of defined terms multi-rate PIE : inserted, on 1 April 2010, by section 106(4)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section DV 6 list of defined terms portfolio tax rate entity : repealed, on 1 April 2010, by section 106(4)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).