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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 a group"

Illustration for Income Tax Act 2007

When a company is part of a group, you treat some income as the company's income. This happens when the income would belong to the group if it were one company, for the purposes of section FM 9. The income is treated as the company's income. You must remember that some other rules can override this, like sections CB 15C and CB 15D, which apply to certain companies. These rules are about companies linked to a local authority or Kāinga Ora–Homes and Communities. You should look at these rules to see how they apply.

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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.

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Topics:
Money and consumer rights > TaxesBusiness > Industry rules
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CV 1: Group companies, or

"Income from companies owned by the same person or group"

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"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).

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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).