Section HA 1 — Income Tax Act 2007: What this subpart does

HA 1 What this subpart does Distributing profits and attributing tax losses (1) The rules in this subpart allow a company to choose, for taxation purposes,— (a) to have a distribution of profits to shareholders imputed or, to the extent not imputed, distributed as exempt income; and (b) [Repealed] Requirements for qualifying companies (2) A qualifying company must meet the requirements of sections HA 5 to HA 9 , and must maintain the conditions set out in section HA 4 . Requirements for loss-attributing qualifying companies (3) A loss-attributing qualifying company must be a qualifying company, and must meet the shareholding requirements of section HA 10 . Income year or part-year (4) In this subpart, a reference to an income year includes a reference to part of an income year. Elections required (5) For a company to be a qualifying company or a loss-attributing qualifying company, all the directors of the company, and every shareholder in the company with legal capacity, must sign an election referred to in section HA 5 . An exception applies for a minority shareholder in the situation described in section HA 29 . Shareholder’s personal liability (6) A shareholder who makes an election referred to in subsection (5) must agree to take personal liability to the extent described in section HA 8 . Defined in this Act: company , director , exempt income , income year , loss-attributing qualifying company, pay , qualifying company , share , shareholder , tax , tax loss , Compare: 2004 No 35 ss HG 1(c), (d) , HG 3(1) , HG 4(1) , HG 14 Section HA 1(1)(a): substituted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 57(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HA 1(1)(b): repealed, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 70(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HA 1 list of defined terms exempt income : inserted (with effect on 1 April 2008), on 7 September 2010, by section 57(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).