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Income Tax Act 2007

Taxation of certain entities - Qualifying companies (QC)

HA 8B: No CFC income interests or FIF direct income interests of 10% or more

You could also call this:

“Qualifying companies can't have significant foreign company investments”

If you have a qualifying company, you need to know that it can’t have certain types of interests in foreign companies. Your qualifying company is not allowed to have income interests in a CFC. A CFC is a type of foreign company. Your qualifying company also can’t have interests in a FIF that are 10% or more of a direct income interest. A FIF is another type of foreign investment. These rules help to make sure that qualifying companies don’t have too much involvement with foreign investments.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2569109.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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Part H Taxation of certain entities
Qualifying companies (QC)

HA 8BNo CFC income interests or FIF direct income interests of 10% or more

  1. A qualifying company must not have—

  2. income interests in a CFC:
    1. interests in a FIF that are a direct income interest of 10% or more.

      Notes
      • Section HA 8B: inserted (with effect on 30 June 2009), on , by section 252(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section HA 8B(b): amended (with effect on 1 July 2009 and applying for income years beginning on or after that date), on , by section 73(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
      • Section HA 8B list of defined terms attributing interest: repealed (with effect on 30 June 2009), on , by section 76 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).