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FE 31D: Worldwide group for entity controlled by non-resident owning body or trustee
or “How to determine your worldwide group if you're controlled by non-residents or a trustee”
You could also call this:

“Rules for companies partly owned by worldwide group members”

You need to know about a special situation for companies in a worldwide group. This applies when two people each own half of a company called a joint venture company. One of these owners is part of the worldwide group, and the other isn’t.

The joint venture company can choose to leave out the owner who isn’t part of the worldwide group. This is true even if that owner has connections to the group through other companies they own or that own them.

To figure out who owns what part of the company, you need to look at some other parts of the law. These parts explain how to work out ownership interests.

Remember, this is just one small part of a bigger set of rules about worldwide groups and taxes. If you want to know more, you might need to look at other parts of the law too.

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Next up: FE 33: New Zealand banking group

or “How to determine who belongs to a New Zealand banking group”
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Part F Recharacterisation of certain transactions
Interest apportionment on thin capitalisation: Worldwide group

FE 32Joint venture parties

  1. This section applies to a company (the joint venture company) in a worldwide group under section FE 31 or FE 31B if—

  2. a person (the excluded joint venturer) holds an ownership interest equal to 50% in the joint venture company; and
    1. 1 other person (the included joint venturer) in the worldwide group holds an ownership interest equal to 50% in the joint venture company; and
      1. but for the application of this section, the worldwide group includes every person who holds both an ownership interest equal to 50% in the joint venture company and—
        1. who has an ownership interest in the included joint venturer; or
          1. in whom the included joint venture company has an ownership interest.

          2. The joint venture company may choose to exclude the excluded joint venturer from its worldwide group for an income year, despite sections FE 31 and FE 31B.

          3. For the purposes of this section, ownership interests are determined under sections FE 38 to FE 41.

          Notes
          • Section FE 32: substituted (with effect on 30 June 2009), on , by section 226(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section FE 32 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).