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Income Tax Act 2007

Timing and quantifying rules - Controlled foreign company and foreign investment fund rules - Attributing interests in FIFs

EX 37B: Share in grey list company acquired under venture investment agreement

You could also call this:

“ Special rules for certain shares in overseas companies acquired through venture investments ”

If you have rights in a foreign investment fund (FIF) in a year, these rights might not be considered an attributing interest in certain cases. This can happen if the FIF is a grey list company and you get your first share or option to buy a share in the company in a special way. You need to get this share or option under a venture investment agreement. Also, you must get it at the same time and on the same terms as the Venture Investment Fund or a company owned by the Venture Investment Fund gets an interest in the FIF. If all these conditions are met, your rights in the FIF won’t be an attributing interest for that year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1699205.

Topics:
Money and consumer rights > Taxes
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EX 37: Grey list company owning New Zealand venture capital company: 10-year exemption, or

“10-year tax exemption for overseas companies investing in New Zealand venture capital”

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EX 38: Exemptions for employee share schemes, or

“Certain employee share schemes exempt from Foreign Investment Fund rules”

Part E Timing and quantifying rules
Controlled foreign company and foreign investment fund rules: Attributing interests in FIFs

EX 37BShare in grey list company acquired under venture investment agreement

  1. A person's rights in a FIF in an income year are not an attributing interest if—

  2. the FIF is a grey list company; and
    1. the person first acquires a share or option to buy a share in the company—
      1. under a venture investment agreement; and
        1. at the same time and on the same terms as an acquisition of an interest in the FIF by the Venture Investment Fund or a company owned by the Venture Investment Fund.

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        Notes
        • Section EX 37B: inserted, on , by section 389 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).