Section YC 11 — Income Tax Act 2007: No look-through rule for companies in certain cases

YC 11 No look-through rule for companies in certain cases When this section applies (1) This section applies when a company (the shareholder company ) has, before section YC 4 is applied to that interest, a voting interest or market value interest in another company (the issuing company ) and either subsection (2) or (3) applies. First case: limited attribution company holding less than 50% (2) The shareholder company— (a) is a limited attribution company; and (b) the voting interest or market value interest, when added to any interests which the shareholder company is treated as having under section YC 4 , as modified by this section and section YC 10 , is less than 50%. Second case: shareholder not associated and would be attributed less than 10% (3) A person (the shareholder ), who holds a voting or market value interest in the shareholder company, to whom the relevant portion of the voting interest or market value interest in the issuing company would be attributed under section YC 4 , assuming section YC 10 does not then apply to the portion,— (a) is not associated with the issuing company; and (b) the relevant portion, before adding any other voting or market value interest which the shareholder has or is treated as having, is less than 10%. Overriding look-through rule (4) Section YC 4 does not apply to the voting or market value interest of the shareholder company. Defined in this Act: associated person , company , co-operative company , double tax agreement , limited attribution company , market value interest , shareholder , voting interest , Compare: 2004 No 35 s OD 5(6) Section YC 11(3): amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 131(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).