Section FM 22 — Income Tax Act 2007: Arrangements to avoid consolidation rules

FM 22 Arrangements to avoid consolidation rules When this section applies (1) This section applies when— (a) a company joins a consolidated group and at the time holds property that it later transfers to another group company; and (b) sections FM 15 or FM 17 to FM 20 would otherwise apply to the transfer of the property; and (c) after the transfer the company leaves the consolidated group, whether by liquidation or otherwise. Arrangement to defeat consolidation rules (2) If, in undertaking the activities, it could reasonably be concluded that the company was involved in an arrangement that had a purpose or effect of defeating the intent and application of the consolidation rules, the relevant provision does not apply to the transfer. Defined in this Act: arrangement , company , consolidated group , consolidation rules , liquidation , Compare: 2004 No 35 s FD 10(9)