Section EX 37 — Income Tax Act 2007: Grey list company owning New Zealand venture capital company: 10-year exemption

EX 37 Grey list company owning New Zealand venture capital company: 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 grey list company at all times after a time when the shares were not listed on a recognised exchange; and (e) at all times in the year, the grey list company holds more than 50% of the voting interests in a company resident in New Zealand (the resident company ) that, for 12 months or more, has— (i) carried on a business in New Zealand; and (ii) had in New Zealand more than 50% of the resident company's assets; and (iii) had in New Zealand more than 50% of the resident company's employees; and (f) the year begins less than 10 years after the grey list company first held more than 50% of the voting interests in the resident company; and (g) the resident company through a fixed establishment in New Zealand— (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: (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 , voting interest , year , Compare: 2004 No 35 s EX 33(4) Section EX 37(d): substituted, on 1 April 2008, by section 388(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 37(e): substituted, on 1 April 2008, by section 388(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 37(e): amended (with effect on 1 April 2008), on 6 October 2009, by section 171(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 37(f): substituted (with effect on 1 April 2008), on 6 October 2009, by section 171(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 37(g)(i): substituted, on 1 April 2008, by section 388(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 37(g)(ii): substituted, on 1 April 2008, by section 388(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section EX 37 list of defined terms voting interest : inserted (with effect on 1 April 2008), on 6 October 2009, by section 171(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).