Section FE 28 — Income Tax Act 2007: Identifying members of New Zealand group

FE 28 Identifying members of New Zealand group New Zealand parent's group (1) A New Zealand group is made up of an excess debt entity, the entity's New Zealand parent, and a company— (a) that is— (i) resident in New Zealand: (ii) carrying on a business in New Zealand through a fixed establishment in New Zealand: (iii) deriving 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; and (b) that is identified under section FE 27 as being under the control of the New Zealand parent; and (c) that is not a member of the New Zealand banking group of a registered bank. Special rule for some entity's group (2) Despite subsection (1), if the excess debt entity is not an excess debt outbound company and is not a company identified under section FE 27 as being under the control of the New Zealand parent because the threshold is not met, the New Zealand group is made up of the entity and a company— (a) that is— (i) resident in New Zealand: (ii) carrying on a business in New Zealand through a fixed establishment in New Zealand: (iii) deriving 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; and (b) that is a company that— (i) would be identified under section FE 27 as being under the control of the entity if the entity were treated as the New Zealand parent; or (ii) if the entity is identified under section FE 27 as being under the control of another company ( company A ), would be identified under section FE 27 as under the control of company A if company A were included in the New Zealand group and treated as the New Zealand parent; or (iii) would be identified under section FE 27 as under the control of a company ( company B ) included in the entity's New Zealand group under subparagraph (ii), if company B were treated as the New Zealand parent; or (iv) is not a member of the New Zealand banking group of a registered bank. Another special rule for some other entity’s group (3) Despite subsection (1), if the excess debt entity is an excess debt outbound company and is not a company identified under section FE 27 as being under the control of the New Zealand parent because the threshold is not met, the entity is included in the New Zealand group for the New Zealand parent if— (a) the entity is a company that meets the requirements of subsection (1)(a) and (c); and (b) a member of the New Zealand group has a 50% or more ownership interest in the entity. Defined in this Act: business , company , double tax agreement , excess debt entity , excess debt outbound company , fixed establishment , New Zealand , New Zealand banking group , non-resident passive income , registered bank , resident in New Zealand , source in New Zealand , tax Section FE 28: substituted (with effect on 30 June 2009), on 6 October 2009, by section 221(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 28(1)(a)(iii): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 61(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 28(2)(a)(iii): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 61(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 28 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 28 list of defined terms non-resident passive income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 61(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 28 list of defined terms tax : inserted (with effect on 1 July 2011), on 7 May 2012, by section 61(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).