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FE 28: Identifying members of New Zealand group
or “How to determine which companies belong to a New Zealand tax group”
You could also call this:

“Rules for joining New Zealand groups with shared ownership by people or trustees”

You need to know about combining New Zealand groups that are owned by people or trustees. This applies when a person or trustee has a big ownership in two different groups. Each group must have a company that has too much debt overseas.

If you own at least half of a company in one group, and at least half of a company in another group, something special happens. Both of these groups join together to become one big New Zealand group.

Remember, this only happens when each group has a company with too much overseas debt. The law calls these ‘excess debt outbound companies’.

If you want to know more about who exactly this applies to, you can check section FE 2(1)(g).

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Next up: FE 30: Ownership interests in companies outside New Zealand group

or “Rules for including foreign companies in a New Zealand group for tax purposes”
Next

Part F Recharacterisation of certain transactions
Interest apportionment on thin capitalisation: New Zealand group

FE 29Combining New Zealand groups owned by natural persons and trustees

  1. This section applies when a natural person or trustee described in section FE 2(1)(g) has—

  2. a 50% or more ownership interest in a member of a New Zealand group (group 1) having a member that is an excess debt outbound company; and
    1. a 50% or more ownership interest in a member of a different New Zealand group (group 2) having a member that is an excess debt outbound company.

      1. Group 1 and group 2 combine into 1 New Zealand group.

      Notes
      • Section FE 29: substituted (with effect on 30 June 2009), on , by section 222(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section FE 29 list of defined terms ownership interest: inserted, on , by section 116(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).