Section FM 39 — Income Tax Act 2007: Choosing to leave consolidated group

FM 39 Choosing to leave consolidated group When this section applies (1) This section applies when a company chooses to leave a consolidated group and notifies the Commissioner of its election. Deferring leaving date (2) When the company notifies the Commissioner of its election, it may defer the date on which it leaves the consolidated group to the first day of the next income year. However, unless subsections (3) and (4) apply, if the company does not defer the leaving date, it is treated as no longer in the consolidated group from the start of the income year in which the Commissioner receives the notice. First income year: deferral (3) Despite subsection (2), if a company leaves a consolidated group in the same income year in which it joins the group, and defers the leaving date in the notice, it is treated as leaving the consolidated group from the start of the income year after the income year in which the Commissioner receives the notice. Sections FM 40 and FM 41 override this subsection. First income year: no deferral (4) Despite subsection (2), if a company leaves a consolidated group in the same income year in which it joins the consolidated group, and does not defer the leaving date in the notice, it is treated as leaving the consolidated group on the date it joined the group. Defined in this Act: Commissioner , company , consolidated group , income year , notice , notify , Compare: 2004 No 35 s FD 8(2) Section FM 39(3): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).