Section LZ 3 — Income Tax Act 2007: Interest derived from development investments

LZ 3 Interest derived from development investments When this section applies (1) This section applies when— (a) the only assessable income of a non-resident investment company in a tax year is interest derived from development investments; and (b) the amount of the non-resident investment company’s income tax liability for the interest is more than the amount of income tax payable by the non-resident investment company on the interest if it had been derived from a source in the country or territory in which the investment company is resident. Tax credit (2) The non-resident investment company is entitled to a tax credit equal to the amount of the excess referred to in subsection (1)(b). Income tax liability under 15% of gross amount of interest (3) Despite subsection (2), if the non-resident investment company and the person by whom the interest is paid are not associated persons, the amount of the non-resident investment company’s income tax liability for that interest must not be more than 15% of the gross amount of the interest. Defined in this Act: amount , assessable income , associated person , development investments , gross , income tax , income tax liability , interest , non-resident investment company , pay , resident , tax credit , tax year , Compare: 2004 No 35 s KZ 3(2)