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New Zealand law explained for everyone

Income Tax Act 2007

Recharacterisation of certain transactions - Consolidated groups of companies - Eligibility and restrictions

FM 33: When membership is reduced

You could also call this:

“What happens when a consolidated group loses members”

If you’re part of a consolidated group, it’s important to know what happens when the number of companies in the group changes. The group can still exist even if there’s only one company left in it. However, if at any point there are no companies in the group at all, then the consolidated group stops existing. This means that as long as there’s at least one company, your consolidated group will continue to be recognised.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516719.

Topics:
Money and consumer rights > Taxes
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FM 32: Restriction on membership of consolidated groups, or

“Companies can only be part of one consolidated tax group at a time”

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FM 34: Nominated companies, or

“How a company is chosen to represent a group of companies for tax purposes”

Part F Recharacterisation of certain transactions
Consolidated groups of companies: Eligibility and restrictions

FM 33When membership is reduced

  1. A consolidated group continues to exist if the number of group companies is reduced to 1 company, but if the consolidated group has no company at any time, the consolidated group no longer exists.

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