Section EX 21B — Income Tax Act 2007: Non-attributing active CFCs

EX 21B Non-attributing active CFCs Non-attributing active CFC (1) Non-attributing active CFC , for an accounting period and a person (the interest holder ), means a CFC— (a) for which the interest holder is not affected by an election under section EX 73 for the accounting period; and (b) that meets the requirements of subsection (2) or (3), alone or as part of a test group of companies under section EX 21D or EX 21E . CFC meeting test in section EX 21D or EX 21E (2) A CFC is a non-attributing active CFC— (a) under section EX 21D , if the CFC meets the requirements of that section and paragraph (b) does not apply: (b) under EX 21E , if— (i) the CFC meets the requirements of section EX 21C for the use of an applicable accounting standard in the application of EX 21E ; and (ii) the person chooses to use the applicable accounting standard in applying EX 21E ; and (iii) the CFC meets the requirements of EX 21E . Insurer meeting requirements of determination (3) A CFC that is an insurer meeting the requirements of a determination made by the Commissioner under section 91AAQ of the Tax Administration Act 1994 is a non-attributing active CFC. Single test for each CFC (4) In determining whether CFCs are non-attributing active CFCs for an accounting period under a test in section EX 21D or EX 21E , an interest holder must not use the result of a test applied to a test group that includes a CFC if the person uses for the period a result of the same or a different test applied to the CFC, alone or as part of a different test group. Defined in this Act: accounting period , CFC , group of companies , non-attributing active CFC Section EX 21B: inserted (with effect on 30 June 2009), on 6 October 2009, by section 162(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 1B(1): replaced (with effect on 30 June 2009), on 2 November 2012 (applying for income years beginning on or after 1 July 2009), by section 44(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section EX 21B(4) heading: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 24(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 21B(4): inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 24(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 1B list of defined terms group of companies : inserted (with effect on 30 June 2009), on 2 November 2012, by section 44(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).