Section HM 70 — Income Tax Act 2007: Maximum amount of formation losses allocated by multi-rate PIEs to investor classes

HM 70 Maximum amount of formation losses allocated by multi-rate PIEs to investor classes Maximum amount for allocation (1) Despite sections HM 68 and HM 69 , the maximum amount of formation loss that may be allocated, when calculating under section HM 35(5) the taxable amount of an investor class for an attribution period, is calculated using the formula— class net income − credits rate. Definition of items in formula (2) In the formula,— (a) class net income is the amount of the net income of the investor class for the period under section HM 35(4) : (b) credits is the total amount attributed to the investor class for the period of— (i) imputation credits: (ii) Maori authority credits: (iii) RWT credits: (iv) FDP credits: (c) rate is the basic rate for companies set out in schedule 1 , part A, clause 2 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits). Defined in this Act: amount , attribution period , company , FDP credit , formation loss , imputation credit , investor class , Maori authority credit , net income , RWT Compare: 2007 No 97 s HL 30(6), (7) Section HM 70: 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).