Section HA 5 — Income Tax Act 2007: Elections to become qualifying company

HA 5 Elections to become qualifying company Making elections (1) A company that meets the requirements of sections HA 6 to HA 9 may be a qualifying company or an LAQC only if all the directors of the company and every shareholder in the company with legal capacity, choose, before the start of the grandparenting income year, that the company is to become a qualifying company. Every director and every shareholder with legal capacity must sign a notice of election and give it to the Commissioner. Extension of time in some cases (1B) An election is treated as made before the start of the grandparenting income year for the purposes of subsection (1), if the relevant persons choose before the end of the time allowed by section 37 of the Tax Administration Act 1994 for providing a return for the company's first income year, and–– (a) that income year is— (i) the grandparenting income year; and (ii) nominated under section HA 30(3) ; and (b) the company has not previously been required to provide a return of income. Elections remaining in effect (2) The elections referred to in subsection (1) must remain in effect and must not have been revoked before the end of the relevant income year. Director at time (3) For the purposes of an election, a person is considered a director of a company if they hold the office at the time the notice is provided. Elections (4) The elections referred to in this section are dealt with in sections HA 28 to HA 39 . Meaning of grandparenting income year (5) In this section, grandparenting income year means the income year before the first income year that starts on or after 1 April 2011. Defined in this Act: Commissioner , company , director , grandparenting income year, income year , LAQC, notice , qualifying company , shareholder , Compare: 2004 No 35 ss HG 3(1) , HG 4(1) , HG 14(a), (b) , OB 3(1)(f) Section HA 5(1): amended (with effect on 1 April 2010), on 21 December 2010 (applying for income years beginning on or after 1 April 2010), by section 72(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HA 5(1B) heading: inserted (with effect on 1 April 2010), on 21 December 2010 (applying for income years beginning on or after 1 April 2010), by section 72(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HA 5(1B): inserted (with effect on 1 April 2010), on 21 December 2010 (applying for income years beginning on or after 1 April 2010), by section 72(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HA 5(5) heading: added (with effect on 1 April 2010), on 21 December 2010 (applying for income years beginning on or after 1 April 2010), by section 72(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HA 5(5): added (with effect on 1 April 2010), on 21 December 2010 (applying for income years beginning on or after 1 April 2010), by section 72(3) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HA 5 list of defined terms grandparenting income year : inserted (with effect on 1 April 2010), on 21 December 2010, by section 72(4) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).