Section FE 23 — Income Tax Act 2007: Banking group’s funding debt

FE 23 Banking group’s funding debt Formula (1) A reporting bank must calculate the funding debt of its New Zealand banking group for a tax year using the formula— total interest + interest deductions − shares days in quarter. Definition of items in formula (2) In the formula,— (a) total interest is the financial value of the total interest-bearing debt for the group, measured on the last day of a quarter in the reporting bank’s corresponding income year: (b) interest deductions is the financial value not included in paragraph (a) of a financial arrangement in relation to which the group has a deduction for interest to which any of sections DB 6 to DB 8 (which relate to interest expenditure) applies, other than as a consequence of a fluctuation in the value of a currency of a country relative to the value of a currency of another country: (c) shares is the financial value of shares included in paragraph (a), measured on the last day of a quarter in the reporting bank’s corresponding income year: (d) days in quarter is the number of days in a quarter in the reporting bank’s corresponding income year. Defined in this Act: corresponding income year , deduction , financial arrangement , financial value , interest , New Zealand banking group , quarter , reporting bank , share , tax year , Compare: 2004 No 35 s FG 8B(3)