Section MB 4 — Income Tax Act 2007: Family scheme income of major shareholders in close companies

MB 4 Family scheme income of major shareholders in close companies When this section applies (1) This section applies for the purposes of determining the amount that represents the family scheme income of a person for an income year when the person is a major shareholder in a close company on the last day of the company's balance date for financial purposes. If the company has paid the major shareholder a dividend in the income year, the amount of family scheme income calculated under subsection (2) is reduced by the total dividends paid for the income year. What is included in family scheme income (2) The person’s family scheme income includes an amount calculated using the formula— person's shares × company's income. company's shares Definition of items in formula (3) In the formula,— (a) person’s shares is the number of shares issued by the company and held by the person, excluding fixed-rate shares, on the last day of the company’s accounting year: (b) company’s shares is the number of shares issued by the company, excluding fixed-rate shares, on the last day of the company’s accounting year: (c) company’s income is the net income of the company for the company’s accounting year. Defined in this Act: accounting year , amount , close company , dividend , family scheme income , income year , major shareholder , net income , share , Compare: 2004 No 35 s KD 1(1)(g) Section MB 4(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 352(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).