Section FM 2 — Income Tax Act 2007: Consolidation rules

FM 2 Consolidation rules Purpose (1) The consolidation rules are intended to ensure that, unless a provision of this Act expressly provides otherwise or the context requires another result, this Act applies to companies that are part of a consolidated group as if they were a single company, including its treatment for the following purposes: (a) to determine whether a tax credit may be used to satisfy the income tax liability of a consolidated group for a tax year: (b) when a provision sets a limit or provides a threshold, and its application depends on whether or not something is more or less than the limit or threshold. Meaning (2) The consolidation rules means the following: (a) this subpart: (b) section GB 38 (When sections GB 35 to GB 37 apply to consolidated groups): (c) subpart ID (Use of tax losses by consolidated groups): (d) sections LK 8 to LK 11 (which relate to tax credits of consolidated group companies): (e) subpart OP (Memorandum accounts of consolidated groups): (f) section RC 28 (Provisional tax rules and consolidated groups): (g) section 74 of the Tax Administration Act 1994. Defined in this Act: company , consolidated group , consolidation rules , income tax liability , tax credit , tax year , Compare: 2004 No 35 ss FD 1 , OB 1 “ consolidation rules ” Section FM 2(2)(g): substituted (with effect on 30 June 2009), on 6 October 2009, by section 229(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).