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Income Tax Act 2007

Avoidance and non-market transactions - Market value substituted

GC 11: Applications for matching treatment

You could also call this:

"Asking for the same tax treatment as someone else"

When you are dealing with tax, there is a rule that applies if an amount of money is changed under section GC 7 or GC 8. This change happens when you have an arrangement with another person or company. The other person or company can ask the Commissioner for the same change to be applied to them.

The Commissioner will consider this request if it is fair and reasonable. You must make this request within 6 months of the tax assessment that shows the change. The Commissioner must also have told the other person or company about the change. If the Commissioner agrees, the change will apply to the other person or company for tax purposes. This includes when the other person or company is a controlled foreign company, and the change affects their income.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517107.

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Part GAvoidance and non-market transactions
Market value substituted

GC 11Applications for matching treatment

  1. This section applies when—

  2. an arm’s length amount of consideration is substituted under section GC 7 or GC 8 in relation to a transfer pricing arrangement entered into by a person (the taxpayer); and
    1. the other party to the arrangement or, if the other party is a controlled foreign company (CFC), a person with an income interest in the CFC, applies to the Commissioner within 6 months after an assessment is made for the taxpayer which reflects the substitution; and
      1. the difference between the arm’s length amount and either the consideration payable in the absence of section GC 7 or the consideration receivable in the absence of section GC 8, as the case may be, is not a dividend; and
        1. the Commissioner considers it is fair and reasonable to apply subsection (2), having regard to an adjustment made under a double tax agreement or any other matter; and
          1. the Commissioner has notified the other party.

            1. The substitution applies for the purposes of the application of this Act to the other party—

              1. including, when the other party is a CFC, the calculation of net attributable CFC income or net attributable CFC loss in relation to the other party, and the resultant calculation of the attributed CFC income or an attributed CFC loss or attributed CFC net loss of a person.

                Compare
                Notes
                • Section GC 11 heading: amended, on , by section 47(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section GC 11(1)(b): amended, on , by section 47(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section GC 11(1)(bb): inserted, on , by section 67(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                • Section GC 11(2)(a): repealed, on , by section 67(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
                • Section GC 11(2)(b): substituted (with effect on 30 June 2009), on , by section 248(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section GC 11 list of defined terms apply: inserted, on , by section 47(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section GC 11 list of defined terms branch equivalent income: repealed (with effect on 30 June 2009), on , by section 248(2)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section GC 11 list of defined terms branch equivalent loss: repealed (with effect on 30 June 2009), on , by section 248(2)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section GC 11 list of defined terms net attributable CFC income: inserted (with effect on 30 June 2009), on , by section 248(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section GC 11 list of defined terms net attributable CFC loss: inserted (with effect on 30 June 2009), on , by section 248(2)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section GC 11 list of defined terms notify: inserted, on , by section 47(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).