Section EX 2 — Income Tax Act 2007: Four categories for calculating control interests

EX 2 Four categories for calculating control interests Separate categories (1) Under section EX 5(1) , a direct control interest in a foreign company can arise in each of 4 separate categories of rights. List of categories (2) The 4 categories are— (a) shareholding in the foreign company: (b) shareholder decision-making rights for the foreign company: (c) rights to receive income from the foreign company: (d) rights to receive distributions of the company’s net assets. Detailed calculation rules (3) In each category, more detailed calculation rules appear in section EX 5 . Four categories of control interests (4) Accordingly, the rules in section EX 3 for calculating control interests by totalling various direct and indirect control interests and associated parties’ interests are applied on a category by category basis, by reference to those categories of direct control interest. Defined in this Act: associated person , control interest , direct control interest , foreign company , income , shareholder decision-making right , Compare: 2004 No 35 s EX 2