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FE 36B: Identifying members of New Zealand banking group: Crown-owned, no interest apportionment
or “Identifying members of government-owned banks without interest division requirements”
You could also call this:

“How to identify the reporting bank in a New Zealand banking group”

When you’re part of a New Zealand banking group, you need to know who the reporting bank is. This is important because the reporting bank has special responsibilities.

If your banking group has only one registered bank, or if it doesn’t have any registered banks but has one fixed place of business for a registered bank, then that registered bank is the reporting bank.

But what if your banking group has more than one registered bank? Or what if it doesn’t have any registered banks but has fixed places of business for more than one registered bank? In these cases, the reporting bank is chosen in one of two ways:

  1. If a registered bank tells the Commissioner within 6 months after the end of the income year that they want to be the reporting bank, they get to be it.

  2. If that doesn’t happen, the Commissioner gets to choose which registered bank will be the reporting bank.

Remember, it’s important to know who your reporting bank is because they have special duties for your banking group.

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Next up: FE 38: Measuring ownership interests in companies

or “How to calculate your total ownership in a company”
Next

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

FE 37Reporting bank for New Zealand banking group

  1. Subsection (2) applies on a day when a New Zealand banking group has either—

  2. a single registered bank, or
    1. no registered bank but a fixed establishment of a single registered bank.

      1. The reporting bank for the day is the registered bank.

      2. Subsection (4) applies on a day when a New Zealand banking group has either—

      3. more than 1 registered bank; or
        1. no registered bank but fixed establishments of more than 1 registered bank.

          1. The reporting bank is—

          2. the registered bank that first notifies the Commissioner of an election to be the reporting bank, if the Commissioner receives the notice within 6 months after the end of the income year in which the day occurs; or
            1. if paragraph (a) does not apply, the registered bank chosen by the Commissioner.

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              Notes
              • Section FE 37 list of defined terms notify: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).