Section IQ 8 — Income Tax Act 2007: When group membership lacking in tax year of use

IQ 8 When group membership lacking in tax year of use When this section applies (1) This section applies if a company joins a consolidated group in a tax year with a ring-fenced tax loss consisting of an attributed CFC net loss or FIF net loss, or both, carried forward to the tax year, which must be used in the tax year under section IQ 6 . Limit on amount (2) The amount that may be subtracted from the net income of the consolidated group for the tax year under section ID 2(2) is the lesser of— (a) the amount of ring-fenced tax loss referred to in section IQ 7(1) that the company could subtract from— (i) the amount that would be the company’s net income for the part of the tax year in which it was not part of a consolidated group; and (ii) the net income for the tax year of another consolidated group of which the company was part before joining the present group; and (b) the amount that would be the group’s net income for the part of the tax year in which the company was part of the consolidated group, established by giving the Commissioner, at the time of providing the group’s return of income for the tax year, adequate financial statements that— (i) relate to the part of the tax year when the company was part of the group; and (ii) disclose the amount that would be the company’s net income for the part of the tax year in which the company was part of the consolidated group, determined on a fair and reasonable basis of attribution. Defined in this Act: amount , attributed CFC net loss , Commissioner , company , consolidated group , FIF net loss , net income , return of income , ring-fenced tax loss , tax year Compare: 2004 No 35 s IG 7(5) Section IQ 8(1): amended (with effect on 1 April 2008), on 7 December 2009, by section 67(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section IQ 8(2)(a): amended (with effect on 1 April 2008), on 7 December 2009, by section 67(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).