Section EX 60 — Income Tax Act 2007: Top-up FIF income: deemed rate of return method

EX 60 Top-up FIF income: deemed rate of return method When this section applies (1) This section applies at any time when a person— (a) has an attributing interest in a FIF for a period; and (b) is calculating the FIF income or loss from the interest using the deemed rate of return method; and (c) derives in the period, from holding or disposing of the interest, an amount that would have been income if section EX 59(2) had not applied. Formula (2) The gain is FIF income to the extent to which the amount calculated using the following formula is positive: total income gains − total FIF income. Definition of items in formula (3) In the formula,— (a) total income gains is the total of amounts, including the amount in question, derived by the person until that time from holding or disposing of the interest that would have been income if section EX 59(2) had not applied: (b) total FIF income is the total of FIF income, reduced by the total of any FIF losses, derived by the person from the interest until, and including, the relevant period. Consequence of partial sales (4) If the person disposes of part of the interest, this section applies to the part disposed of and the part retained as if they were separate interests. If this means that an apportionment is necessary, it must be done on the basis of the respective market values at the time the part interest is disposed of. Defined in this Act: amount , attributing interest , deemed rate of return method , FIF , FIF income , FIF loss , income , loss , market value , Compare: 2004 No 35 s EX 48