Section EX 26 — Income Tax Act 2007: Use of quarterly measurement

EX 26 Use of quarterly measurement Interests held at end of quarter (1) In order to simplify the process of calculating a person’s control interest or income interest in a foreign company, the person is treated as holding at all times during a quarter the same interest, including a zero interest, as the interest they hold at the end of the quarter. Anti-avoidance (2) The concession in subsection (1) is overridden by the anti-avoidance rules in sections GB 9 to GB 16 (which relate to arrangements involving CFCs). Ignoring concession (3) A person may choose not to apply the concession in subsection (1) when calculating their attributed CFC income or loss from a foreign company. Election (4) An election under subsection (3)— (a) must be in the form required by the Commissioner; and (b) is irrevocable; and (c) applies in the income year in which it is made and later. Defined in this Act: attributed CFC income , Commissioner , control interest , foreign company , income interest , income year , loss , quarter , Compare: 2004 No 35 s EX 27