Section LE 2 — Income Tax Act 2007: Use of remaining credits by companies and trustees

LE 2 Use of remaining credits by companies and trustees When this section applies (1) This section applies when–– (a) a person described in subsection (2) has an amount of tax credit remaining for a tax year under section LA 5(4) (Treatment of remaining credits): (b) a life insurer has an amount of tax credit remaining for a tax year under section LA 5(4) , but only to the extent to which the amount is for their shareholder base. Certain persons only (2) The person referred to in subsection (1)(a) must be— (a) a company that is not a life insurer; or (b) a trustee (other than the Maori trustee); or (c) a Maori authority. Calculating amount of tax loss component (3) The person or the life insurer, as applicable, has a tax loss component for the corresponding income year equal to an amount calculated using the formula— person's remaining credit tax rate. Definition of items in formula (4) In the formula,— (a) person’s remaining credit is the amount of the tax credit remaining for the tax year under section LA 5(4) , but, for a life insurer, only to the extent to which the amount is for their shareholder base: (b) tax rate is the basic rate of income tax set out in schedule 1, part A (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits). Defined in this Act: amount , company , corresponding income year , income tax , life insurer , Maori authority , shareholder base , tax loss component , tax year , trustee Compare: 2004 No 35 ss GC 22(4), (5), (9) , GC 23 , GC 24 , LB 2(2B), (3) Section LE 2(1) heading: substituted, on 1 July 2010, by section 325(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2(1): substituted, on 1 July 2010, by section 325(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2(2): amended, on 1 July 2010, by section 325(2)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2(2)(a): amended, on 1 July 2010, by section 325(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2(3): amended, on 1 July 2010, by section 325(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2(4)(a): amended, on 1 July 2010, by section 325(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2(4)(b): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section LE 2 list of defined terms life insurer : inserted, on 1 July 2010, by section 325(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LE 2 list of defined terms shareholder base : inserted, on 1 July 2010, by section 325(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).