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Income Tax Act 2007

Income - Income specific to certain entities

CV 2: Consolidated groups: income of company in group

You could also call this:

“How income is treated for companies in consolidated tax groups”

If you are part of a group of companies that are treated as one for tax purposes (called a consolidated group), this is what you need to know about income:

When your company earns money, and that money would be counted as income if the whole group was just one big company, then it’s treated as income for your company too.

However, there are some exceptions to this rule. If your company is connected to a local council or is in the same group as Kāinga Ora-Homes and Communities (which is a government housing agency), then different rules might apply. You can find these special rules in other parts of the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513089.

Topics:
Money and consumer rights > Taxes
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CV 1: Group companies, or

“How income is treated for companies in the same ownership group”

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CV 3: Consolidated groups: arrangement for disposal of shares, or

“Rules for selling shares within a group of companies”

Part C Income
Income specific to certain entities

CV 2Consolidated groups: income of company in group

  1. This section applies for the purposes of section FM 9 (Amounts that are company's income) to an amount derived by a company that is part of a consolidated group, when the amount would be income of the group if the group were 1 company.

  2. The amount is treated as income of the company.

  3. Subsection (2) is overridden by sections CB 15C and CB 15D (which apply to bodies linked or associated with a local authority or companies in the same wholly-owned group as Kāinga Ora–Homes and Communities).

Compare
Notes
  • Section CV 2(1): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 15(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section CV 2(3) heading: replaced (with effect on 1 July 2017), on , by section 135 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
  • Section CV 2(3): replaced (with effect on 1 July 2017), on , by section 135 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
  • Section CV 2(3): amended (with effect on 1 October 2019), on , by section 190 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).