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FE 40: Tiered ownership interests
or “How to calculate your ownership in companies owned by other companies”
You could also call this:

“How to count ownership interests for New Zealand banking groups”

When figuring out if a company is part of a New Zealand banking group, you need to think about how people own parts of the company. This includes looking at the parts owned by people who are connected to the company in some way.

If you’re looking at how much of a company someone owns, you need to count the parts owned by people who are connected to them too. But be careful not to count the same parts more than once. If this happens, you need to fix the numbers so everything is only counted one time.

There’s a special rule about people who don’t live in New Zealand. If someone doesn’t live in New Zealand and doesn’t own any part of the company (not even in a roundabout way), they’re not considered to be connected to their family members who do live in New Zealand, at least not when it comes to this company.

These rules help make sure that when we’re deciding if a company is part of a New Zealand banking group, we’re looking at the right information about who owns what.

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or “This subpart has been removed from the law and no longer applies”
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Part F Recharacterisation of certain transactions
Interest apportionment on thin capitalisation: New Zealand banking group

FE 41Treatment of associated persons’ interests

  1. For the purposes of section FE 40, a person’s direct ownership interests include the direct ownership interests of a person associated with them. But if an aggregation of ownership interests results in the same percentage shares or rights in a company being counted more than once, the person’s ownership interest in the company must be adjusted to the extent necessary to avoid multiple counting.

  2. For the purposes of section FE 38 or FE 40, as applicable, a non-resident who does not have a direct or an indirect ownership interest in a company and a relative resident in New Zealand are not associated persons in relation to the company.

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Notes
  • Section FE 41(1): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 71(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section FE 41(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 71(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section FE 41 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).