Section EX 3 — Income Tax Act 2007: Control interest: total of direct, indirect, and associated person interests

EX 3 Control interest: total of direct, indirect, and associated person interests Calculation of control interest (1) A New Zealand resident’s control interest in a foreign company at any time is the total of the following for the relevant control interest category: (a) any direct control interest that the New Zealand resident holds in the company: (b) any direct control interests in the company held by persons associated with the New Zealand resident: (c) any indirect control interests that the New Zealand resident holds in the company: (d) any indirect control interests in the company held by persons associated with the New Zealand resident. Avoidance arrangements: first kind (2) Section GB 7 (Arrangements involving CFC control interests) may apply to treat a control interest as being held by a group of New Zealand residents in equal proportions. Avoidance arrangements: other kinds (3) Any of the following sections may apply to the calculation of a person’s control interest: (a) section GB 9 (Temporary disposals of direct control or income interests): (b) section GB 10 (Temporary acquisitions of direct control or income interests): (c) section GB 11 (Temporary increases in totals for control interest categories): (d) section GB 12 (Temporary reductions in totals for control interest categories): (e) section GB 13 (When combination of changes reduces income): (f) section GB 14 (When combination of changes increases loss). Defined in this Act: associated person , control interest , direct control interest , foreign company , New Zealand resident , Compare: 2004 No 35 ss EX 3 , GC 7 , GC 9