Section FE 8 — Income Tax Act 2007: Measurement dates

FE 8 Measurement dates Daily, 3-monthly, or annual basis for excess debt entity (1) An excess debt entity must measure the amount of total group debt and total group assets of its New Zealand group for an income year using 1 of the following methods: (a) the average amount at the end of each day of the income year; or (b) the average amount at the end of each 3-month period in the income year; or (c) the amount at the end of the income year. Different balance dates (2) For the purposes of subsection (1), if the members of the entity’s New Zealand group do not have the same balance date, the alternatives in subsection (1) apply as if the entity has the same balance date as that of the New Zealand parent. Daily, monthly, or quarterly for reporting bank (3) A reporting bank must measure both the equity threshold and the net equity of its New Zealand banking group for an income year on 1 of the following dates: (a) each day of the income year; or (b) the last day of each calendar month of the income year; or (c) if the reporting bank does not choose either paragraph (a) or (b), the last day of each quarter of an income year. Change in identity of reporting bank (4) If the identity of the reporting bank changes, the first measurement period for the new reporting bank begins on the day after the last measurement date of the former reporting bank. Defined in this Act: amount , excess debt entity , income year , New Zealand , New Zealand banking group , quarter , reporting bank , total group assets , total group debt , Compare: 2004 No 35 ss FG 4(5), (6) , FG 8E Section FE 8(4): amended (with effect on 1 April 2008), on 2 November 2012 (applying for the 2008–09 and later income years) by section 69(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).