Section GC 4 — Income Tax Act 2007: Disposals and acquisitions of FIF attributing interests

GC 4 Disposals and acquisitions of FIF attributing interests When subsection (2) applies (1) Subsection (2) applies if— (a) a person disposes of an attributing interest in a foreign investment fund (FIF); and (b) they calculate their FIF income or loss from the interest for the period ending with the disposal using the comparative value method, deemed rate of return method, the fair dividend rate method, or the cost method; and (c) the consideration, if any, for the disposal is below the market value of the interest at the time. Disposal treated as at market value (2) The person is treated as having disposed of the interest for an amount equal to its market value at the time. When subsection (4) applies (3) Subsection (4) applies if— (a) a person acquires an attributing interest in a FIF; and (b) they calculate their FIF income or loss from the interest for the period after the acquisition using the comparative value method, deemed rate of return method, the fair dividend rate method, or the cost method; and (c) the consideration, if any, for the acquisition is not equal to the market value of the interest at the time. Acquisition treated as at market value (4) The person is treated as having acquired the interest for an amount equal to its market value at the time. Defined in this Act: attributing interest , comparative value method , cost method , deemed rate of return method , fair dividend rate method , FIF , FIF income , FIF loss , Compare: 2004 No 35 s GD 14