Section EX 36 — Income Tax Act 2007: Venture capital company emigrating to grey list country: 10-year exemption

EX 36 Venture capital company emigrating to grey list country: 10-year exemption A person’s rights in a FIF in an income year are not an attributing interest if— (a) the rights are a direct income interest; and (b) the FIF is a grey list company; and (c) the FIF is not an entity described in schedule 25, part B (Foreign investment funds); and (d) the person has held shares in the company at all times after a time when— (i) the company was resident in New Zealand; and (ii) the shares were not listed on a recognised exchange; and (e) the company became a grey list company immediately after having, for 12 months or more,— (i) carried on business in New Zealand; and (ii) had in New Zealand more than 50% of its assets; and (iii) had in New Zealand more than 50% of its employees; and (f) the year begins less than 10 years after the company became a grey list company; and (g) at all times in the year, the company has a fixed establishment in New Zealand; and (h) the company through the fixed establishment— (i) incurs in the year, expenditure other than interest of at least $1,000,000 or, if less than $1,000,000, at least 25% of the total expenditure, other than interest, incurred by the company in the year; and (ii) at all times in the year, engages at least 10 fulltime employees or contractors or, if less than 10, at least 25% of the total number engaged by the company. Defined in this Act: attributing interest , company , direct income interest , employee , FIF , fixed establishment , grey list company , income year , interest , New Zealand resident , recognised exchange , share , year , Compare: 2004 No 35 s EX 33(3) Section EX 36(d): amended, on 1 April 2008, by section 387(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 36(e)(i): substituted, on 1 April 2008, by section 387(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 36(h)(i): substituted, on 1 April 2008, by section 387(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 36(h)(ii): substituted, on 1 April 2008, by section 387(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).