Section EX 24 — Income Tax Act 2007: Companies moving to or from New Zealand

EX 24 Companies moving to or from New Zealand Companies becoming foreign (1) If a company becomes a foreign company, an accounting period of the company starts on the day when the company becomes a foreign company and the former accounting period ends on the previous day. Companies ceasing to be foreign (2) If a foreign company ceases to be a foreign company, an accounting period of the company starts on the day when the company ceases to be a foreign company and the former accounting period ends on the previous day. Pro-rating (3) If subsection (1) or (2) applies to shorten an accounting period of a CFC, a person with attributed CFC income or loss from the CFC for the period may choose to calculate the branch equivalent income or loss of the CFC— (a) using the results for the shortened period only; or (b) by applying the pro-rating formula in subsection (4) to the results for the unshortened period. Formula (4) The formula for calculating branch equivalent income or loss under subsection (3)(b) is— unshortened period branch equivalent income or loss × days in shortened period days in unshortened period. Defined in this Act: accounting period , attributed CFC income , branch equivalent income , CFC , company , foreign company , loss , New Zealand , Compare: 2004 No 35 s EX 25