Section FM 10 — Income Tax Act 2007: Expenditure: intra-group transactions

FM 10 Expenditure: intra-group transactions When this section applies (1) This section applies when— (a) a company incurs expenditure or loss, or has an amount of depreciation loss, in a tax year or part of a tax year in which it is part of a consolidated group; and (b) the company incurs the expenditure or loss through a payment or disposal to, or a transaction or arrangement with, another consolidated group company. No deduction (with exception) (2) If a deduction would not be allowed for the expenditure or loss if the consolidated group were 1 company, the company is denied a deduction under section DV 16 (Consolidated groups: intra-group transactions) unless the exceptions in section DV 16(2)(a) or (b) apply. Defined in this Act: amount , arrangement , company , consolidated group , deduction , depreciation loss , loss , tax year , Compare: 2004 No 35 s HB 2(1)(b)