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Income Tax Act 2007

Income - Excluded income - Definitions

CX 60: Intra-group transactions

You could also call this:

“Rules for money exchanges between companies in the same group”

When you’re part of a company that belongs to a group of companies, sometimes your company might get money from dealing with another company in the same group. This money is called an ‘amount’. If all the companies in your group were actually just one big company, this amount wouldn’t be counted as income.

In most cases, the amount your company gets from these deals within your group isn’t counted as income that can be taxed. But there are some exceptions to this rule, which are explained in another part of the law called section FM 8(3). If your situation fits one of those exceptions, then the amount might still be counted as income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513487.

Topics:
Money and consumer rights > Taxes
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Part C Income
Excluded income: Definitions

CX 60Intra-group transactions

  1. This section applies when a company that is part of a consolidated group derives an amount referred to in section FM 8 (Transactions between group companies: income) from a transaction or arrangement with another company that is part of the same group and the amount would not be income if the group were 1 company.

  2. Repealed

  3. The amount, except to the extent to which it is described in section FM 8(3), is excluded income of the company.

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Notes
  • Section CX 60(1): replaced, on , by section 41(1) (and see section 41(3) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section CX 60(1): amended (with effect on 1 April 2019), on , by section 23(1) (and see section 23(4) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
  • Section CX 60(1B) heading: repealed (with effect on 1 April 2019), on , pursuant to section 23(2) (and see section 23(4) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
  • Section CX 60(1B): repealed (with effect on 1 April 2019), on , by section 23(2) (and see section 23(4) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
  • Section CX 60(2): replaced (with effect on 1 April 2019), on , by section 52(1) (and see section 52(2) for application) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
  • Section CX 60(2): amended (with effect on 1 April 2019), on , by section 23(3) (and see section 23(4) for application) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).