Section FE 2 — Income Tax Act 2007: When this subpart applies

FE 2 When this subpart applies Persons to whom interest apportionment rules may apply (1) The interest apportionment rules in sections FE 6 and FE 7 may apply to the following persons if, at a time in an income year, they are: (a) a non-resident who is not a company: (b) a non-resident company unless the company is 1 in which— (i) a person resident in New Zealand has a direct ownership interest of 50% or more; and (ii) no non-resident has a direct ownership interest of 50% or more, when added to any direct ownership interests of all persons associated with them: (c) a company that is resident in New Zealand if a non-resident has— (i) an ownership interest in the company of 50% or more: (ii) control of the company by any other means: (d) the trustee of a non-complying trust settled by a non-resident if the value of the settlements made by them, including the value of all settlements made by a person associated with them, are 50% or more of the value of the settlements made on the trust: (e) a company that is resident in New Zealand and has— (i) an income interest in a CFC: (ii) an interest in a FIF that satisfies the requirements of section EX 35 (Exemption for interest in FIF resident in Australia): (iii) an interest in a FIF for which the person uses the attributable FIF income method: (f) a company that is resident in New Zealand and has— (i) an ownership interest in a company described in paragraph (e) of 50% or more: (ii) control of a company described in paragraph (e) by any other means: (g) a natural person, or a trustee of a trust settled by a New Zealand resident, if the natural person or trustee is resident in New Zealand and has–– (i) an income interest in a CFC: (ib) an interest in a FIF that satisfies the requirements of section EX 35 : (ic) an interest in a FIF for which the person uses the attributable FIF income method: (ii) an ownership interest in a company described in paragraph (e) or (f) of 50% or more: (iii) control of a company described in paragraph (e) or (f) by any other means. Ownership interests (2) Ownership interests in a company are determined under sections FE 38 to FE 41 . Treatment of foreign companies (3) For the purposes of this section, a company resident in New Zealand is treated as being a non-resident company if it is treated under a double tax agreement as not being resident in New Zealand. Associated persons (4) For the purposes of subsection (1)(b)(ii), a non-resident who does not have a direct or an indirect ownership interest in a company and a relative resident in New Zealand are not associated persons in relation to the company. New Zealand banking group of Crown-owned registered bank (5) If the members of the New Zealand banking group of a registered bank are given by section FE 36B, the interests held by a member of the group for the purposes of subsection (1)(e) and (f) do not include interests held by an associated person who is not a member of the group. Defined in this Act: associated person , attributable FIF income method, CFC , company , FIF, income interest , income year , interest , New Zealand , New Zealand banking group, non-complying trust , non-resident , non-resident company , relative , resident in New Zealand , settlement , trustee , Compare: 2004 No 35 s FG 2(1), (6), (8) Section FE 2(1)(d): amended (with effect on 30 June 2009), on 6 October 2009, by section 207(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 2(1)(e): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 51(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2(1)(f): added (with effect on 30 June 2009), on 6 October 2009, by section 207(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 2(1)(g): added (with effect on 30 June 2009), on 6 October 2009, by section 207(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 2(1)(g)(ib): inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 51(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2(1)(g)(ic): inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 51(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2(5) heading: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 51(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2(5) : inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 51(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2 list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 51(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2 list of defined terms CFC : inserted (with effect on 30 June 2009), on 6 October 2009, by section 207(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 2 list of defined terms control : repealed, on 1 April 2010, by section 594 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 2 list of defined terms FIF : inserted (with effect on 1 July 2011), on 7 May 2012, by section 51(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 2 list of defined terms income interest : inserted (with effect on 30 June 2009), on 6 October 2009, by section 207(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 2 list of defined terms New Zealand banking group : inserted (with effect on 1 July 2009), on 7 May 2012, by section 51(5) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).