Section FE 15 — Income Tax Act 2007: Total group debt

FE 15 Total group debt Meaning (1) In this subpart, for a New Zealand group, total group debt means the sum of the outstanding balances of— (a) financial arrangements entered into by a natural person, or an excess debt entity, or another member of the New Zealand group, if the financial arrangement— (i) provides funds to the natural person, the entity, or another member of the group; and (ii) gives rise to an amount for which the natural person, the entity, or another member of the group, would have a deduction: (b) fixed-rate foreign equity or fixed-rate shares that are— (i) issued by the entity or another member of the New Zealand group; and (ii) held by a person resident in New Zealand: (c) stapled debt securities— (i) issued by the entity or another member of the New Zealand group; and (ii) held by a person resident in New Zealand; and (iii) stapled to shares other than shares of a company that is a proportional-stapling company. Exchange rate fluctuations (2) Subsection (1)(a)(ii) does not include a deduction for an amount that arises only from movement in currency exchange rates. Section 90A Tax Administration Act 1994 (3) For a determination on whether a financial arrangement provides funds, see section 90A of the Tax Administration Act 1994. Defined in this Act: amount , deduction , excess debt entity , financial arrangement , fixed-rate foreign equity , natural person , New Zealand , proportional-stapling company , resident in New Zealand , stapled , stapled debt security Compare: 2004 No 35 s FG 4(2) Section FE 15(1) heading: substituted (with effect on 30 June 2009), on 6 October 2009, by section 215(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15(1): substituted (with effect on 30 June 2009), on 6 October 2009, by section 215(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15(2) heading: substituted (with effect on 30 June 2009), on 6 October 2009, by section 215(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15(2): substituted (with effect on 30 June 2009), on 6 October 2009, by section 215(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15 list of defined terms fixed-rate foreign equity : inserted (with effect on 30 June 2009), on 6 October 2009, by section 215(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15 list of defined terms proportional-stapling company : inserted (with effect on 1 April 2008), on 6 October 2009, by section 215(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15 list of defined terms resident in New Zealand : inserted (with effect on 1 April 2008), on 6 October 2009, by section 215(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15 list of defined terms stapled : inserted (with effect on 1 April 2008), on 6 October 2009, by section 215(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 15 list of defined terms stapled debt security : inserted (with effect on 1 April 2008), on 6 October 2009, by section 215(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).