Plain language law

New Zealand law explained for everyone

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 shared among companies in a group for tax purposes"

When you are part of a consolidated group, this section helps decide what income belongs to your company. It applies to amounts your company gets when the group would be treated as one company. The amount is treated as your company's income for the purposes of section FM 9.

This rule is important because it helps your company work out its income. However, some other rules can override this one, such as sections CB 15C and CB 15D, which are about companies linked to local authorities. There is also section CB 15E, which is about selling land.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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=DLM1513089.

Previous

CV 1: Group companies, or

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

Next

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

"Rules for selling shares within a group of companies"

Part CIncome
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), and CB 15E (Disposals of land subject to section CW 3C).

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) heading: amended (with effect on 27 March 2021), on , by section 20(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • 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 27 March 2021), on , by section 20(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • 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).