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Income Tax Act 2007

Timing and quantifying rules - Controlled foreign company and foreign investment fund rules - Market value rules

EX 71: Non-market transactions in FIF interests

You could also call this:

“Rules for buying or selling foreign investment fund interests at non-market prices”

When you buy or sell interests in foreign investment funds (FIFs), you need to be aware of special rules. These rules apply when you use certain methods to calculate your income from these investments. The methods include the comparative value method, the deemed rate of return method, the fair dividend rate method, and the cost method.

If you use any of these methods, Section GC 4 of the Income Tax Act 2007 applies to your transactions. This section deals with how to handle disposals and acquisitions of FIF interests that might not be at market value.

It’s important to understand these rules to make sure you’re reporting your FIF income correctly for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515751.

Topics:
Money and consumer rights > Taxes
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Part E Timing and quantifying rules
Controlled foreign company and foreign investment fund rules: Market value rules

EX 71Non-market transactions in FIF interests

  1. Section GC 4 (Disposals and acquisitions of FIF attributing interests) applies to acquisitions and dispositions of attributing interests in FIFs when the comparative value method, the deemed rate of return method, the fair dividend rate method, or the cost method is used.

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