Section FE 32 — Income Tax Act 2007: Joint venture parties

FE 32 Joint venture parties What this section applies to (1) This section applies to a company (the joint venture company ) in a worldwide group under section FE 31 or FE 31B if— (a) a person (the excluded joint venturer ) holds an ownership interest equal to 50% in the joint venture company; and (b) 1 other person (the included joint venturer ) in the worldwide group holds an ownership interest equal to 50% in the joint venture company; and (c) but for the application of this section, the worldwide group includes every person who holds both an ownership interest equal to 50% in the joint venture company and–– (i) who has an ownership interest in the included joint venturer; or (ii) in whom the included joint venture company has an ownership interest. Exclusion of excluded joint venturer (2) The joint venture company may choose to exclude the excluded joint venturer from its worldwide group for an income year, despite sections FE 31 and FE 31B . Ownership interests (3) For the purposes of this section, ownership interests are determined under sections FE 38 to FE 41 . Defined in this Act: company , excess debt entity , income year Section FE 32: substituted (with effect on 30 June 2009), on 6 October 2009, by section 226(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).