Section LJ 1 — Income Tax Act 2007: What this subpart does

LJ 1 What this subpart does When tax credits allowed (1) This subpart provides the rules for dividing assessable income from foreign-sourced amounts into segments and allows a tax credit for foreign income tax paid in relation to a segment of that income. Limited application of rules (2) The rules in this subpart apply only when— (a) a person resident in New Zealand derives assessable income that is sourced from outside New Zealand; and (b) foreign income tax is not paid in a country or territory listed in schedule 27 (Countries and types of income with unrecognised tax) to the extent to which the foreign income tax is paid on the types of income listed in the schedule. When treated as assessable income [Repealed] (3) [Repealed] Source of dividends (4) If a company is not resident in New Zealand, and for the purposes of a law of another territory in relation to which a double tax agreement has been made is resident in that territory, and the law imposes foreign tax, a dividend paid by the company is treated as being derived from a source in that other territory for the purposes of the double tax agreement. Double tax agreements (5) This subpart and sections BH 1 (Double tax agreements) and CD 19(1) (Foreign tax credits and refunds linked to dividends) and section 88 of the Tax Administration Act 1994 as far as they are applicable, and modified as necessary, apply for the purposes of section LJ 2 , as if that section were a double tax agreement. Relationship with section YD 5 (6) Section YD 5 (Apportionment of income derived partly in New Zealand) applies to determine how an amount is apportioned to sources outside New Zealand. Defined in this Act: amount , assessable income , attributing interest , company , dividend , double tax agreement , FIF , foreign income tax , foreign investment fund , foreign-sourced amount , foreign tax , income , pay , resident in New Zealand , tax credit , Compare: 2004 No 35 ss LC 1(1)–(5) , LC 14(1) , LC 14A Section LJ 1(2)(a): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 100 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section LJ 1(3) heading: repealed (with effect on 1 April 2008), on 6 October 2009, pursuant to section 335(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LJ 1(3): repealed (with effect on 1 April 2008), on 6 October 2009, by section 335(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LJ 1(6) heading: added (with effect on 1 April 2008), on 6 October 2009, by section 335(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LJ 1(6): added (with effect on 1 April 2008), on 6 October 2009, by section 335(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LJ 1 list of defined terms derived from New Zealand : repealed, on 21 December 2010, by section 109(2)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).