Section EX 25 — Income Tax Act 2007: Change of CFC’s balance date

EX 25 Change of CFC’s balance date Application of this section (1) This section applies when a person— (a) has an income interest in a CFC; and (b) has calculated attributed CFC income or loss or attributed repatriation from the CFC on the basis of 1 accounting year (the old accounting year ); and (c) wants to change to use a different accounting year (the new accounting year ) for the calculations. Change requiring Commissioner’s consent (2) The person may make the change only if the Commissioner agrees. Commissioner’s reasons (3) The Commissioner may consider any relevant factors when making the decision, including— (a) whether the change is sought because ownership of the CFC has changed: (b) whether the change is sought because of taxation or other legal requirements in a country where the CFC is resident or does business: (c) whether the change is sought to achieve consistent balance dates in a group of companies: (d) whether the change would postpone liability to income tax on attributed CFC income or on attributed repatriation. No transitional deferral (4) If the new accounting year ends in a later income year than the year the old accounting year ends in, and that fact would result in an amount of attributed CFC income or attributed repatriation being derived in the later income year, the amount is not deferred to the later income year and instead is treated as derived in the previous income year. However, this subsection applies only once, in the year of the transition. Defined in this Act: accounting year , amount , attributed CFC income , attributed repatriation , business , CFC , Commissioner , group of companies , income interest , income tax , income year , loss , Compare: 2004 No 35 s EX 26 Section EX 25(3)(d): substituted (with effect on 30 June 2009), on 6 October 2009, by section 165(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 25 list of defined terms FDP : repealed (with effect on 30 June 2009), on 6 October 2009, by section 165(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).