Section EX 12 — Income Tax Act 2007: Reduction of total income interests

EX 12 Reduction of total income interests Application of this section (1) This section applies when the total income interests for a CFC for an accounting period would be more than 100%, because section EX 9(3) requires the highest percentage to be taken if varying percentage shareholder rights are held. Proportional reduction (2) Each person’s income interest for the period is reduced to the amount calculated using the formula— income interest before reduction × 100 total income interests before reduction. Defined in this Act: accounting period , amount , CFC , income interest , shareholder , Compare: 2004 No 35 s EX 12