Section RF 11 — Income Tax Act 2007: Dividends paid to companies associated with non-residents

RF 11 Dividends paid to companies associated with non-residents When this section applies (1) This section applies when— (a) a non-resident formerly held a share in a company ( company A ) resident in New Zealand; and (b) while the non-resident held the share, company A was associated with the non-resident; and (c) the non-resident has disposed of the share to another company ( company B ) that is resident in New Zealand and associated with the non-resident; and (d) some or all of the price for which company B acquired the share remains after the acquisition unpaid or owing in any way to the non-resident, whether or not the amount is secured. Dividend derived (2) While an amount of the price remains unpaid or owing, a dividend paid to company B in relation to the share is treated as having been paid to the non-resident and as derived as a dividend by the non-resident at the time the dividend is paid. Defined in this Act: amount , company , dividend , non-resident , pay , resident in New Zealand , share , Compare: 2004 No 35 s NG 14 Section RF 11 heading: substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 535(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 11(1)(b): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 535(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 11(1)(c): substituted, on 1 April 2010 (applying for the 2010–11 and later income years), by section 535(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 11 list of defined terms control : repealed, on 1 April 2010, by section 594 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).