Section FE 31 — Income Tax Act 2007: Worldwide group for corporate excess debt entity if not excess debt outbound company

FE 31 Worldwide group for corporate excess debt entity if not excess debt outbound company Members of worldwide group (1) For an income year, for an excess debt entity that is a company and is not an excess debt outbound company, a worldwide group is made up of— (a) the entity; and (b) the entity’s New Zealand group for the income year; and (c) the entity’s worldwide GAAP group, as described in subsection (2); and (d) the entity’s ultimate non-resident parent, as described in subsection (3); and (e) the ultimate non-resident parent’s worldwide GAAP group, as described in subsection (4); and (f) any non-resident that— (i) is not a company; and (ii) has ownership interests in the entity of 50% or more; and (g) any person associated with the non-resident referred to in paragraph (f). Worldwide GAAP group (2) An excess debt entity’s worldwide GAAP group is made up of all non-residents who are required to be included with the entity in the consolidated financial statements under, as the entity chooses,— (a) generally accepted accounting practice; or (b) an equivalent standard for consistent and non-distorting financial reporting that is— (i) set in the country where the ultimate non-resident parent of the parent, as described in subsection (3), resides; or (ii) applied when preparing the consolidated financial statements of the international group of which the entity is part. Ultimate non-resident parent (3) An excess debt entity’s ultimate non-resident parent is the company that meets the following requirements: (a) the company has ownership interests in the entity of 50% or more; and (b) the company is not excluded from the entity’s worldwide group under section FE 32 ; and (c) no other company has both— (i) an ownership interest in the entity of 50% or more: (ii) an ownership interest in the company referred to in paragraphs (a) and (b). Ultimate non-resident parent’s worldwide GAAP group (4) The ultimate non-resident parent’s worldwide GAAP group is made up of— (a) the ultimate non-resident parent; and (b) any non-resident who is required to be included with the ultimate non-resident parent in consolidated group accounts under, as the non-resident parent chooses,— (i) the standard referred to in subsection (2)(b)(i), if applicable; or (ii) generally accepted accounting practice. Measuring ownership interests (5) In subsection (3), ownership interests are determined under sections FE 38 to FE 41. Defined in this Act: associated person , company , excess debt entity , excess debt outbound company , generally accepted accounting practice , income year , New Zealand , non-resident , ultimate parent Compare: 2004 No 35 s FG 5(8) Section FE 31 heading: substituted (with effect on 30 June 2009), on 6 October 2009, by section 224(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 31(1): amended (with effect on 30 June 2009), on 6 October 2009, by section 224(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 31(1)(a): substituted (with effect on 30 June 2009), on 6 October 2009, by section 224(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section FE 31 list of defined terms excess debt outbound company : inserted (with effect on 30 June 2009), on 6 October 2009, by section 224(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).