Income Tax Act 2007

Recharacterisation of certain transactions - Consolidated groups of companies - Accounting generally

FM 7: Treatment of amounts derived or expenditure incurred

You could also call this:

“How consolidated group companies handle income and expenses”

When you’re part of a company that belongs to a consolidated group, there are special rules about how to handle money you earn or spend. These rules are found in Sections FM 8 to FM 23 of the Income Tax Act 2007. They only apply to the time when your company is actually in the consolidated group. This means if your company joins or leaves the group during the year, these rules will only affect the part of the year when your company was a member of the group.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516640.

Topics:
Money and consumer rights > Taxes

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FM 6: Some general rules for treatment of consolidated groups, or

“Rules for treating consolidated groups as a single company for tax purposes”


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FM 8: Transactions between group companies: income, or

“How income is treated for transactions within company groups”

Part F Recharacterisation of certain transactions
Consolidated groups of companies: Accounting generally

FM 7Treatment of amounts derived or expenditure incurred

  1. Sections FM 8 to FM 23 set out the treatment of certain amounts derived or expenditure incurred while a company is part of a consolidated group. The treatment applies to the part of a company’s income year when the company is in the consolidated group.

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Notes
  • Section FM 7: amended, on , by section 107 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).