Section FL 2 — Income Tax Act 2007: Treatment of emigrating companies and their shareholders

FL 2 Treatment of emigrating companies and their shareholders When this section applies (1) This section applies immediately before the time of emigration of an emigrating company. Treatment of company (2) The company is treated as— (a) disposing of its property to a person, and reacquiring the property from the person, for consideration equal to the market value of the property at the time; and (b) making a distribution in money as a dividend to its shareholders of an amount that would be available for distribution at the time if the company were treated as going into liquidation. Treatment of shareholder (3) Each shareholder of the company is treated as being paid a distribution in money as a dividend of the amount the shareholder would be entitled to at the time if the company were treated as going into liquidation. Defined in this Act: amount , dividend , emigrating company , liquidation , market value , pay , shareholder , time of emigration , Compare: 2004 No 35 ss FCB 2 , FCB 3