Section FE 3 — Income Tax Act 2007: Interest apportionment for individuals

FE 3 Interest apportionment for individuals Natural persons and trustees: inbound, not described in section FE 2(1)(g) (1) This subpart applies to a natural person or trustee not described in section FE 2(1)(g) with the following modifications: (a) the New Zealand group of the natural person or trustee is made up of the natural person or trustee and all associated persons who–– (i) are resident in New Zealand; or (ii) are carrying on business in New Zealand through a fixed establishment in New Zealand; or (iii) 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: (b) the worldwide group of the trustee is made up of the trustee and–– (i) the trustee's New Zealand group; and (ii) all non-residents who are associated with the trustee or a member of the trustee's New Zealand group: (c) in the calculation of the amount of the natural person's total assets, private and domestic assets are excluded. Natural persons and trustees: outbound, described in section FE 2(1)(g) (2) This subpart applies to a natural person or trustee described in section FE 2(1)(g) with the following modifications: (a) the New Zealand group of the natural person or trustee is made up of the natural person or trustee and all associated persons who are not excess debt outbound companies and are not included in a New Zealand group of an excess debt outbound company, and who–– (i) are resident in New Zealand; or (ii) are carrying on business in New Zealand through a fixed establishment in New Zealand; or (iii) 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: (b) the worldwide group of the trustee is made up of the trustee and–– (i) the trustee's New Zealand group; and (ii) all CFCs in which the trustee or a member of the trustee's New Zealand group has an income interest; and (iii) all FIFs in which the trustee or a member of the trustee's New Zealand group has an interest that meets the requirements of section EX 35 (Exemption for interest in FIF resident in Australia); and (iv) all FIFs in which the trustee or a member of the trustee's New Zealand group has an interest for which the person uses the attributable FIF income method: (c) in the calculation of the amount of the natural person's total assets, private and domestic assets are excluded. Defined in this Act: attributable FIF income method , amount , associated person , business , CFC , double tax agreement , FIF , fixed establishment , generally accepted accounting practice , group of companies , income , income interest , natural person , New Zealand , New Zealand tax , non-resident passive income , resident in New Zealand , source in New Zealand , total group assets , total group debt , trustee Section FE 3: substituted (with effect on 30 June 2009), on 6 October 2009, by section 208(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 3(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 52(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3(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 52(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3(2)(b)(ii): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 52(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3(2)(b)(iii): inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 52(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3(2)(b)(iv): inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 52(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3 list of defined terms attributable FIF income method : inserted (with effect on 1 July 2011), on 7 May 2012, by section 52(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3 list of defined terms FIF : inserted (with effect on 1 July 2011), on 7 May 2012, by section 52(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3 list of defined terms income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 52(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3 list of defined terms New Zealand tax : inserted (with effect on 1 July 2011), on 7 May 2012, by section 52(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 3 list of defined terms non-resident passive income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 52(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).