Section FE 30 — Income Tax Act 2007: Ownership interests in companies outside New Zealand group

FE 30 Ownership interests in companies outside New Zealand group When this section applies (1) This section applies when— (a) a New Zealand group is in existence; and (b) a particular excess debt entity ( company A ) that is not an excess debt outbound company is outside the group; and (c) company A is— (i) resident in New Zealand: (ii) carrying on 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 (d) a single non-resident has ownership interests of 50% or more in both— (i) the New Zealand group; and (ii) company A. Consistency in group membership (2) The New Zealand parent of company A may choose to include the company in the New Zealand group if every company to be included in the enlarged group that is a New Zealand parent in the group makes the same election in relation to all other companies that are not in a New Zealand group with that parent before this section applies. When company A cannot be part of group (3) Despite subsection (2), company A cannot be part of the New Zealand group if— (a) another company ( company B ) that is outside the group has a direct ownership in company A; and (b) company B is— (i) resident in New Zealand: (ii) carrying on 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 (c) either— (i) a New Zealand parent in the group, after the application of subsection (2), has control of company B under section FE 27(3) ; or (ii) the single non-resident has ownership interests of 50% or more in company B. Defined in this Act: business , company , double tax agreement , excess debt entity , excess debt outbound company , fixed establishment , New Zealand , non-resident , non-resident passive income , resident in New Zealand , source in New Zealand , tax Compare: 2004 No 35 s FG 4(14D) Section FE 30(1)(b): substituted (with effect on 30 June 2009), on 6 October 2009, by section 223(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 30(1)(c): substituted (with effect on 30 June 2009), on 6 October 2009, by section 223(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 30(1)(c)(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 62(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 30(3)(b): substituted (with effect on 30 June 2009), on 6 October 2009, by section 223(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 30(3)(b)(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 62(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 30 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 30 list of defined terms double tax agreement : inserted (with effect on 30 June 2009), on 6 October 2009, by section 223(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 30 list of defined terms excess debt outbound company : inserted (with effect on 30 June 2009), on 6 October 2009, by section 223(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 30 list of defined terms non-resident passive income : inserted (with effect on 1 July 2011), on 7 May 2012, by section 62(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section FE 30 list of defined terms source in New Zealand : inserted (with effect on 30 June 2009), on 6 October 2009, by section 223(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 30 list of defined terms tax : inserted (with effect on 1 July 2011), on 7 May 2012, by section 62(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).