Section EX 66 — Income Tax Act 2007: Entities emigrating from New Zealand

EX 66 Entities emigrating from New Zealand When this section applies (1) This section applies when a person holds rights that become an attributing interest in a FIF because an entity becomes a FIF. Treatment as sale and repurchase (2) The person is treated as having— (a) disposed of the interest immediately before the change to an unrelated person; and (b) repurchased it immediately after the change; and (c) received for the sale and paid for the repurchase an amount equal to the market value of the interest at the end of the business day on which the change occurred. Calculation of reduction in FIF income or loss (3) If the change occurs during an accounting period of the FIF and the person uses the attributable FIF income method to calculate FIF income or loss from the rights for that period, section EX 24 does not apply and the FIF income or loss is reduced by subtracting the amount calculated using the formula— FIF income or loss × days before change days in period. Definition of items in formula (4) In the formula,— (a) FIF income or loss is the FIF income or loss of the person from the rights for the period before allowing for the reduction: (b) days before change is the number of complete days in the period before the change occurs: (c) days in period is the number of days in the period. Defined in this Act: accounting period , amount , attributable FIF income method , attributing interest , business , FIF , FIF income , loss , market value , New Zealand , pay , Compare: 2004 No 35 s EX 54 Section EX 66(3): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 45(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 66 list of defined terms accounting profits method : repealed (with effect on 1 July 2011), on 7 May 2012, by section 45(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 66 list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 45(2)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 66 list of defined terms branch equivalent method : repealed (with effect on 1 July 2011), on 7 May 2012, by section 45(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).