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Income Tax Act 2007

Timing and quantifying rules - Controlled foreign company and foreign investment fund rules - Attributing interests in FIFs

EX 34: CFC rules exemption

You could also call this:

“Exemption from FIF rules for certain CFCs in which you have a significant interest”

Your rights in a Foreign Investment Fund (FIF) are not considered an attributing interest if three conditions are met. First, the FIF must be a Controlled Foreign Company (CFC) at the time. Second, you must have an income interest of 10% or more in the CFC for the accounting period, as determined by sections EX 14 to EX 17. Lastly, you must not be a portfolio investment entity. These rules help you understand when your involvement in a FIF might be exempt from certain tax 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=DLM1515528.

Topics:
Money and consumer rights > Taxes
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Part E Timing and quantifying rules
Controlled foreign company and foreign investment fund rules: Attributing interests in FIFs

EX 34CFC rules exemption

  1. A person’s rights in a FIF at any time are not an attributing interest if—

  2. the FIF is a CFC at the time; and
    1. the person has, under sections EX 14 to EX 17, an income interest of 10% or more in the CFC for the accounting period during which the time falls; and
      1. the person is not a portfolio investment entity.

        Compare
        Notes
        • Section EX 34(b): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 28(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
        • Section EX 34(b): amended (with effect on 1 April 2008), on , by section 170 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section EX 34(c): inserted (with effect on 1 July 2011 and applying for income years beginning on or after that date), on , by section 28(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
        • Section EX 34 list of defined terms portfolio investment entity: inserted (with effect on 1 July 2011), on , by section 28(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).