Section HE 2 — Income Tax Act 2007: Classes of mutual transaction

HE 2 Classes of mutual transaction When mutual transactions arise (1) In this subpart, and sections CB 33 , CB 34 , and DV 19 (which relate to income and deductions relating to mutual transactions), a mutual transaction arises when an association— (a) enters into a transaction with members of the association, or a transaction with members of the association and other persons; and (b) the association takes the transaction into account in an income year in determining its net income or net loss under section BC 4 (Net income and net loss). Types of transaction (2) For the purposes of subsection (1), a transaction between an association and its member includes 1 or more of the following: (a) the borrowing by the association of money from 1 or more members, to the extent to which the money is applied as a loan to a member: (b) the lending by the association of money to 1 or more members: (c) for an association that is a statutory producer board other than a body that derives only exempt income— (i) a levy paid by 1 or more members: (ii) a produce transaction. Defined in this Act: association , exempt income , income year , levy , loan , member , mutual transaction , net income , net loss , pay , produce transactions , statutory producer board , Compare: 2004 No 35 s HF 1(8)