Section FE 19 — Income Tax Act 2007: Banking group’s equity threshold

FE 19 Banking group’s equity threshold Requirement for New Zealand banking group: formula (1) A reporting bank must calculate the equity threshold of its New Zealand banking group for a tax year using the formula— 0.06 × (risk-weighted exposures – deductions from equity value). Definition of items in formula (2) In the formula,— (a) risk-weighted exposures is the sum of the following values: (i) for an asset included in a balance sheet, the regulatory value of the asset: (ii) for an exposure not included in a balance sheet, the regulatory value of the exposure: (iii) for an amount of goodwill that is not taken into account in adjustment 4: intangible assets in determining the New Zealand net equity of the group under section FE 21 , the financial value of the goodwill: (b) deductions from equity value is the total amount of the regulatory values of adjustments 1 to 10 referred to in section FE 21 . Assets of fixed establishments (3) For the purposes of this section, the assets of a fixed establishment include those treated as assets of the fixed establishment under generally accepted accounting practice. Defined in this Act: amount , financial value , fixed establishment , generally accepted accounting practice , New Zealand banking group , New Zealand net equity , regulatory value , reporting bank , tax year , Compare: 2004 No 35 s FG 8H Section FE 19(1) formula: replaced (with effect on 1 April 2012), on 2 November 2012 (applying for measurement dates under section FE 8(3) of the Income Tax Act 2007 for periods beginning on or after 1 April 2012), by section 70(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).