Section EX 66B — Income Tax Act 2007: Entities ceasing to be FIFs

EX 66B Entities ceasing to be FIFs When this section applies (1) This section applies when a person holds rights that cease to be an attributing interest in a FIF because an entity ceases to be a FIF. Treatment as sale and repurchase (2) The person is treated as having,— (a) immediately before the change, disposed of the interest to an unrelated person; and (b) immediately after the change, repurchased the interest; 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 FIF loss from the rights for that period, section EX 24 does not apply and the FIF income or FIF loss is reduced by subtracting the amount calculated using the formula— FIF income or loss × days after change days in period. Definition of items in formula (4) In the formula,— (a) FIF income or loss is the FIF income or FIF loss of the person from the rights for the period before allowing for the reduction: (b) days after change is the number of complete days in the period after 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 , FIF , FIF income , FIF loss , market value , pay Section EX 66B: inserted (with effect on 1 April 2009), on 6 October 2009, by section 184(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 66B(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 46(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 66B list of defined terms accounting profits method : repealed (with effect on 1 July 2011), on 7 May 2012, by section 46(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 66B list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 46(2)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 66B list of defined terms branch equivalent method : repealed (with effect on 1 July 2011), on 7 May 2012, by section 46(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).