Section FM 5 — Income Tax Act 2007: Liability when company leaves consolidated group

FM 5 Liability when company leaves consolidated group Company leaving consolidated group (1) In an income year in which a company leaves a consolidated group, the company’s liability under section FM 3(5) is removed if all the following paragraphs apply: (a) if the assessment is made after the later of— (i) the date on which the company is treated as leaving the consolidated group; or (ii) the date of the event that caused the company to be treated as leaving the consolidated group; and (b) the amount assessed is more than an earlier assessment of the consolidated group for the income year; and (c) the Commissioner considers that the removal of the liability will not significantly prejudice the recovery, or likely recovery, of the amount of income tax assessed for the income year. Notifying company and consolidated group (2) For the purposes of subsection (1)(c), the Commissioner must notify the company and the consolidated group if the discretion has been exercised. Defined in this Act: amount , assessment , Commissioner , company , consolidated group , income tax , income year , notify , Compare: 2004 No 35 s HB 1(2)