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Income Tax Act 2007

Deductions - Attributed losses from foreign equity

DN 5: Foreign investment fund loss

You could also call this:

“How to claim a deduction for losses from foreign investments”

You can get a deduction for a foreign investment fund (FIF) loss. This means you can reduce your taxable income by the amount of the loss.

If you calculate your FIF loss using the attributable FIF income method, there are some special rules. These rules are called ‘jurisdictional ring-fencing’ and you can find them in section DN 8.

This rule about FIF losses adds to the general permission for deductions. It also overrides the rule about capital losses. However, other general limitations on deductions still 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=DLM1513904.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Attributed losses from foreign equity

DN 5Foreign investment fund loss

  1. A person is allowed a deduction for a FIF loss.

  2. The deduction for a FIF loss calculated under the attributable FIF income method is subject to the jurisdictional ring-fencing rule in section DN 8.

  3. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

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Notes
  • Section DN 5(2) heading: amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 14(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
  • Section DN 5(2): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 14(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
  • Section DN 5 list of defined terms attributable FIF income method: inserted (with effect on 1 July 2011), on , by section 14(2)(b) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
  • Section DN 5 list of defined terms branch equivalent method: repealed (with effect on 1 July 2011), on , by section 14(2)(a) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).