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New Zealand law explained for everyone

Income Tax Act 2007

Income - Income specific to certain entities

CV 1: Group companies

You could also call this:

"Money from other companies in your group is treated as income."

If you are part of a company that is owned by another company, and you get some money that is not normally considered income, it might still be treated as income. This happens if the company you are part of is owned completely by another company, and if all the companies were one company, the money would be income. You can find more information about when this rule does not apply in sections CB 15D and CB 15E, which also talks about section CW 3C.

When a company gets money, it is treated as income if the company is part of a group of companies that are all owned by the same person or company. The money is treated as income if it would have been income if all the companies were one company. There are some exceptions to this rule, which are explained in other parts of the law.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513087.

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CU 29: Other definitions, or

"Explains that some definitions were removed from the Income Tax Act in 2014"

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CV 2: Consolidated groups: income of company in group, or

"How income is shared among companies in a group for tax purposes"

Part CIncome
Income specific to certain entities

CV 1Group companies

  1. An amount that a company derives in an income year and that would not otherwise be income of the company is treated as its income if—

  2. the company is for that income year part of a wholly-owned group of companies; and
    1. had the group of companies been a single company, the amount would have been income of that single company.

      1. Subsection (1) is overridden by sections CB 15D (Kāinga Ora–Homes and Communities and wholly-owned group) and CB 15E (Disposals of land subject to section CW 3C).

      Compare
      Notes
      • Section CV 1(1) heading: inserted (with effect on 1 July 2017), on , by section 134(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
      • Section CV 1(2) heading: amended (with effect on 27 March 2021), on , by section 19(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
      • Section CV 1(2): inserted (with effect on 1 July 2017), on , by section 134(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
      • Section CV 1(2): amended (with effect on 27 March 2021), on , by section 19(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).