Section HA 43 — Income Tax Act 2007: Meaning of effective interest

HA 43 Meaning of effective interest What this section does (1) This section defines an effective interest in a company, which is the measure of a person’s liability under section HA 8 . Effective interest (2) Effective interest for a person and a company, at a particular time or for an income year, means— (a) the person’s voting interest in the company at the time or for the income year, unless paragraph (b) applies: (b) if there is a market value circumstance for the company at the time or at some time during the income year, the average of— (i) the person’s voting interest in the company at the time or for the income year; and (ii) the person’s market value interest in the company at the time or for the income year. Defined in this Act: company , effective interest , income year , market value circumstance , market value interest , voting interest , Compare: 2004 No 35 s OB 1 “ effective interest ”