Section FE 16 — Income Tax Act 2007: Total group assets

FE 16 Total group assets Meaning (1) In this subpart, for a New Zealand group, total group assets for an income year means the total assets of a natural person, or an excess debt entity, or another member of the New Zealand group, measured under the following paragraphs, as applicable or as the person or entity chooses: (a) the value of the assets shown in the financial statements of the entity’s New Zealand group; or (b) the net current value of the assets; or (c) market value, for trading stock that is valued at market value in calculating the person or entity’s income tax liability for the income year, or that of a member of the group; or (d) adjusted tax value of a personal property lease asset at the start of the income year, in the case of a specified lease or a finance lease that is not recognised as an asset under generally accepted accounting practice; or (e) if allowed under generally accepted accounting practice, a combination of the financial statement values and net current values. CFC investments excluded (1B) If the excess debt entity or another member of the New Zealand group has an investment in a CFC in which the entity or member has an income interest, or an investment in a FIF in which the entity or member has an interest meeting the requirements of section EX 35 (Exemption for interest for FIF resident in Australia) or for which the person uses the attributable FIF income method, the value of the total group assets calculated and measured under this section does not include the value of the investment, except–– (a) to the extent to which— (i) the value of the investment represents the outstanding balances of financial arrangements to which section FE 13 applies: (ii) the CFC or FIF derives income, other than non-resident passive income, that has a source in New Zealand and for which relief from New Zealand tax under a double tax agreement is unavailable: (b) that the value of the total group assets is treated as being $1 if the value would otherwise be zero as a result of this subsection. When member not resident (1C) If the excess debt entity or another member of a New Zealand group is not resident in New Zealand, the assets of the entity or member are included in the calculation and measurement of total group assets under this section only to the extent to which the assets are for the entity or member to— (a) carry on business in New Zealand through a fixed establishment in New Zealand: (b) derive income, other than non-resident passive income, that has a source in New Zealand and for which relief from New Zealand tax under a double tax agreement is unavailable. Generally accepted accounting practice (2) The amount of total group assets must be calculated under generally accepted accounting practice, with the exception of the values referred to in subsection (1)(c) or (d). Defined in this Act: adjusted tax value , amount , attributable FIF income method , CFC , double tax agreement , excess debt entity , FIF , finance lease , generally accepted accounting practice , income interest , income tax liability , income year , lease , market value , natural person , New Zealand , non-resident passive income , personal property lease asset , source in New Zealand , specified lease , tax , , trading stock Compare: 2004 No 35 s FG 4(3), (4) Section FE 16(1B) heading: inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16(1B): inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16(1B): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 58(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 16(1B)(a)(ii): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 58(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 16(1C) heading: inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16(1C): inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16(1C)(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 58(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 16 list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 58(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 16 list of defined terms CFC : inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16 list of defined terms double tax agreement : inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16 list of defined terms FIF : inserted (with effect on 1 July 2011), on 7 May 2012, by section 58(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 16 list of defined terms income interest : inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16 list of defined terms non-resident passive income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 58(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 16 list of defined terms source in New Zealand : inserted (with effect on 30 June 2009), on 6 October 2009, by section 216(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 16 list of defined terms tax : inserted (with effect on 1 July 2011), on 7 May 2012, by section 58(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).