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Income Tax Act 2007

Timing and quantifying rules - Controlled foreign company and foreign investment fund rules - Ten percent threshold and variations in income interest level

EX 14: Attribution: 10% threshold, not PIE

You could also call this:

“Income from foreign companies if you own 10% or more and are not a portfolio investment entity”

If you have an income interest of 10% or more in a Controlled Foreign Company (CFC) for the relevant accounting period, and you are not a portfolio investment entity, you have attributed CFC income or loss from that CFC.

If you are a portfolio investment entity and would have had attributed CFC income or loss from a CFC if not for the rule above, you instead have FIF income or loss from the CFC under the FIF rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515448.

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“This rule about calculating a partner's income interest has been removed”

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“Calculating income interest in foreign companies includes associated people's interests”

Part E Timing and quantifying rules
Controlled foreign company and foreign investment fund rules: Ten percent threshold and variations in income interest level

EX 14Attribution: 10% threshold, not PIE

  1. A person has attributed CFC income or loss from a CFC only if the person—

  2. has an income interest in the CFC of 10% or more for the relevant accounting period; and
    1. is not a portfolio investment entity.

      1. A portfolio investment entity that would have attributed CFC income or loss from a CFC in the absence of subsection (1)(b) has FIF income or loss from the CFC under the FIF rules.

      Notes
      • Section EX 14: replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 18(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).