Section EX 72 — Income Tax Act 2007: Commissioner’s default assessment power

EX 72 Commissioner’s default assessment power When this section applies (1) This section applies when— (a) a person has failed to disclose their control interest or income interest in a CFC or attributing interest in a FIF, under section 61 of the Tax Administration Act 1994: (b) a person has failed to disclose information regarding their control interest or income interest in a CFC or attributing interest in a FIF, requested under section 17 of that Act: (c) a person cannot obtain enough information to calculate their attributed CFC income or loss or FIF income or loss for a period. Commissioner’s power (2) The Commissioner may make an assessment of the amount of attributed CFC income or loss, FIF income or loss, or attributed repatriation for the relevant period. Examples of methods (3) Without limiting the Commissioner’s discretion, the assessment may be based on any of the following: (a) the accounts of the CFC or FIF for the relevant period prepared for tax authorities, creditors, shareholders, or others: (b) the application of a rate of presumed increase of 10% or more, compounded annually, to the CFC's net attributable CFC income or to the FIF's net attributable FIF income, for a previous period: (c) the application of a rate of presumed increase of 10% or more, compounding annually, to the CFC’s or FIF’s accounting profits as shown in its accounts for a previous period: (d) an imputed rate of return on the market value of the interest at the start of the period: (e) the actual gains or losses of the person in the period from holding or disposing of the interest: (f) the change in the market value of the interest over the period. Defined in this Act: amount , assessment , attributable FIF income method , attributed CFC income , attributing interest , CFC , Commissioner , control interest , FIF , FIF income , income interest , loss , market value , net attributable CFC income , net attributable FIF income , shareholder , Compare: 2004 No 35 s EX 60 Section EX 72(1)(c): replaced (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 49(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 72(3)(b): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 49(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 72 list of defined terms attributed repatriation : repealed (with effect on 1 July 2011), on 7 May 2012, by section 49(3)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 72 list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 49(3)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 72 list of defined terms branch equivalent income : repealed (with effect on 1 July 2011), on 7 May 2012, by section 49(3)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 72 list of defined terms net attributable CFC income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 49(3)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 72 list of defined terms net attributable FIF income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 49(3)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).