Section EX 16 — Income Tax Act 2007: Income interests for certain purposes

EX 16 Income interests for certain purposes When this section applies (1) This section applies for the purposes of determining the attributed CFC income or loss of a person for a period if the person holds an income interest in the CFC on a day in the period. Zero income interest (2) For the purposes of calculating the attributed CFC income or loss of a person for a period, the person has an income interest in a CFC of zero on a day in the period if, on the day, the person is— (a) a non-resident: (b) a transitional resident. Attribution not prevented (3) This section does not override— (a) section CD 21 (Attributed repatriations from controlled foreign companies), which treats a dividend resulting from attributed repatriation as being derived while the person deriving it is a New Zealand resident; or (b) section CQ 2(3) (When attributed CFC income arises), which treats any attributed CFC income as being derived while the person deriving it is a New Zealand resident; or (c) section CQ 5(4) (When FIF income arises), which treats any foreign investment fund (FIF) income as being derived while the person deriving it is a New Zealand resident. Defined in this Act: accounting period , attributed CFC income , attributed repatriation , CFC , dividend , FIF income , income interest , New Zealand resident , non-resident , transitional resident , Compare: 2004 No 35 s EX 16