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Income Tax Act 2007

Taxation of certain entities - Qualifying companies (QC)

HA 4: Conditions applying

You could also call this:

“Rules for becoming and staying a qualifying company”

If you want a company to be a qualifying company, it needs to meet certain rules. These rules are found in sections HA 5 to HA 9. The company must follow these rules to become a qualifying company and keep following them to stay one.

If a company doesn’t keep following the rules, section HA 11 tells you what happens. This section also talks about what happens if someone tries to cheat the system.

Sometimes, even if a company seems to be following all the rules, it might not be allowed to be a qualifying company. This can happen if section GB 6 applies. This section is about arrangements involving qualifying companies that might not be okay.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517136.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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“Definition of a now-obsolete type of company in tax law”

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HA 5: Elections to become qualifying company, or

“How a company can choose to become a qualifying company”

Part H Taxation of certain entities
Qualifying companies (QC)

HA 4Conditions applying

  1. The requirements of sections HA 5 to HA 9 are preconditions of, and ongoing conditions for, qualifying companies. For a company to become and to continue as a qualifying company, the requirements of those sections must be met.

  2. Section HA 11 applies in relation to a failure to maintain the requirements and avoidance arrangements.

  3. Section GB 6 (Arrangements involving qualifying companies) may apply to treat a company as not being a qualifying company.

Compare
Notes
  • Section HA 4(1): amended, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
  • Section HA 4(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 82(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
  • Section HA 4 list of defined terms LAQC: repealed, on , by section 172 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).