Section EX 10 — Income Tax Act 2007: Indirect income interests

EX 10 Indirect income interests Looking through CFCs (1) If a person has a direct income interest in a CFC, and the first CFC has a direct income interest in another CFC, the person has an indirect income interest in the other CFC. Calculation of indirect income interest (2) The indirect income interest is calculated by multiplying the person’s direct income interest in the first CFC by the first CFC’s direct income interest in the other CFC. Chains of CFCs (3) If there are 2 or more CFCs in a chain of direct income interests between the person and a CFC, the person has an indirect income interest in the CFC at the end of the chain that is calculated by multiplying all the direct income interests in the chain. Defined in this Act: CFC , direct income interest , indirect income interest , Compare: 2004 No 35 s EX 10