Section HM 65 — Income Tax Act 2007: Use of land losses of investor classes

HM 65 Use of land losses of investor classes When this section applies (1) This section applies when an investor class of a multi-rate PIE that calculates and pays tax using the exit calculation option or the quarterly calculation option under section HM 42 or HM 43 has a land loss for a calculation period. Amount carried forward (2) The amount of land loss may be included in a loss balance carried forward under Part I (Losses) to a later calculation period and used under section HM 35(5) to reduce an amount of taxable income from the class. Meaning of land loss (3) For the purposes of this section, a land loss means a tax loss under section HM 35(7) of an investor class of a PIE for a calculation period if, at the end of the period, the class has, through the investor interests of the members of the class, an entitlement to the distribution of the proceeds of the PIE's investments that— (a) are an investment of the type listed in subsection (4); and (b) have a value that is more than 50% of the market value of all the PIE's investments in which the class has the entitlement. Investment types (4) For the purposes of subsection (3)(a), the investment must be— (a) an investment in land: (b) an investment in a land investment company that is resident in New Zealand: (c) an investment in a non-resident land investment company in which the investor class has a voting interest of more than 20%. Foreign investment PIEs (5) For a notified foreign investor in a foreign investment PIE, the amount of land loss is disregarded. Defined in this Act: amount , calculation period , foreign investment PIE , investor class , investor interest , land , land investment company , land loss , loss balance , market value , multi-rate PIE , non-resident , notified foreign investor , pay , PIE , quarter , resident in New Zealand , share , tax loss , taxable income , voting interest Compare: 2007 No 97 s HL 32(2), (3) Section HM 65: inserted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section HM 65(3)(a): substituted (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 73(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HM 65(4) heading: added (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 73(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HM 65(4): added (with effect on 1 April 2010), on 7 September 2010 (applying for the 2010–11 and later income years), by section 73(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HM 65(5) heading: added, on 29 August 2011, by section 85(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 65(5): replaced, on 2 November 2012, by section 110 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section HM 65 list of defined terms foreign investment PIE : inserted, on 29 August 2011, by section 85(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 65 list of defined terms non-resident : inserted (with effect on 1 April 2010), on 7 September 2010, by section 73(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HM 65 list of defined terms notified foreign investor : inserted, on 29 August 2011, by section 85(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section HM 65 list of defined terms resident in New Zealand : inserted (with effect on 1 April 2010), on 7 September 2010, by section 73(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section HM 65 list of defined terms voting interest : added (with effect on 1 April 2010), on 7 September 2010, by section 73(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).