Section FL 1 — Income Tax Act 2007: What this subpart does

FL 1 What this subpart does When this subpart applies (1) This subpart applies when a company that is a New Zealand resident (the emigrating company ) stops being a New Zealand resident. Tax effects (2) For tax purposes, the effects on an emigrating company and its shareholders, when an emigrating company becomes non-resident reflect the effects that would have resulted if,— (a) immediately before the time of emigration,— (i) the emigrating company disposed of its property at market value; and (ii) the emigrating company went into liquidation; and (iii) the amount available for distribution on liquidation were distributed as dividends to shareholders of the emigrating company to the extent to which the amount is more than the available subscribed capital and any capital gain of the company; and (b) at the time of emigration, the emigrating company were reformed as a foreign company with— (i) the same ownership and business activities as those of the emigrating company immediately before the time of emigration; and (ii) the property of the emigrating company immediately before the time of emigration, acquired at its market value at that time. Defined in this Act: amount , available subscribed capital , business , company , dividend , emigrating company , foreign company , liquidation , market value , New Zealand resident , non-resident , shareholder , tax , time of emigration , Compare: 2004 No 35 s FCB 1