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Income Tax Act 2007

Recharacterisation of certain transactions - Interest apportionment on thin capitalisation

FE 11: Disregarded increases or decreases in value

You could also call this:

“ Ignoring certain value changes in tax calculations ”

This part of the law talks about how to handle certain changes in value when doing calculations. If you’re working on a calculation under this part of the law, and there’s an increase or decrease in value that’s supposed to be ignored according to section GB 51B, you need to follow these rules.

When you’re doing the calculation, you should pretend that the increase or decrease never happened. You need to do your math as if the value stayed the same and didn’t go up or down.

This rule helps make sure that certain changes in value don’t affect the calculations in ways they’re not supposed to. It’s a way to keep things fair and consistent when figuring out taxes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516441.

Topics:
Money and consumer rights > Taxes
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Part F Recharacterisation of certain transactions
Interest apportionment on thin capitalisation

FE 11Disregarded increases or decreases in value

  1. This section applies when the effect of an increase or decrease in a value on a calculation under this subpart (the affected calculation) is disregarded under section GB 51B (Increases or decreases in value).

  2. The affected calculation is made excluding the effect of the increase or decrease.

Notes
  • Section FE 11: replaced, on , by section 26(1) (and see section 26(2) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).