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Income Tax Act 2007

Avoidance and non-market transactions - Avoidance: specific

GB 38: When sections GB 35 to GB 37 apply to consolidated groups

You could also call this:

“Rules for tax avoidance and non-market transactions in consolidated groups”

You need to know about sections GB 35 to GB 37 and how they apply to consolidated groups. These sections are about avoiding certain tax situations and dealing with non-market transactions.

When it comes to consolidated groups, you should think of them as if they were just one big company. Sections GB 35 and GB 36 apply to the accounts of a consolidated group in the same way they would apply to a single company. When these sections mention other parts of the law, you should think about how those parts would apply to the consolidated group’s accounts.

If a company in a consolidated group is treated as if it paid a dividend under section GB 37(3), there’s a special rule. Instead of using section OB 30, which is about paying dividends, you should use section OP 28. This section is specifically about consolidated groups paying dividends.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517010.

Topics:
Money and consumer rights > Taxes
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GB 37: Arrangements for payment of dividend by other companies, or

“Rules for special dividend payment arrangements between companies”

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GB 39: FDP arrangements: general, or

“General rules for foreign dividend payment arrangements (no longer in effect)”

Part G Avoidance and non-market transactions
Avoidance: specific

GB 38When sections GB 35 to GB 37 apply to consolidated groups

  1. Sections GB 35 and GB 36 apply, with the necessary modifications, in a case that involves accounts of a consolidated group as if—

  2. the consolidated group were a single company; and
    1. references to provisions of this Act were references to the equivalent provisions applicable to the equivalent accounts.

      1. If a company is treated by section GB 37(3) as having paid a dividend, and is at the time of payment a member of a consolidated group, section GB 37 applies as if the reference to section OB 30 (ICA payment of dividend) were a reference to section OP 28 (Consolidated ICA payment of dividend).

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