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Income Tax Act 2007

Treatment of tax losses - Grouping tax losses

IC 13: Variation of requirements for development companies in Niue

You could also call this:

“Rules for company ownership in Niue can be adjusted for important development work”

This section talks about how the rules for company ownership can be changed for companies doing development work in Niue. The Governor-General can make an order to change these rules for a specific company if it’s doing important work for Niue’s development.

The company must be doing business that is mainly for Niue’s development and is important to Niue. It also needs to have spent money mostly on making income from Niue or doing business there.

The order will name the company it applies to. It can cover a specific time period or the whole time the company is involved in this work.

If the Governor-General makes this order, it becomes a type of law that needs to be published according to the rules in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2576001.

Topics:
Business > Industry rules
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Part I Treatment of tax losses
Grouping tax losses

IC 13Variation of requirements for development companies in Niue

  1. This section applies in relation to the required common ownership of group companies set out in sections IC 2(2), IC 3, and IC 5(1)(a) for the purposes of providing relief to company A for losses incurred in connection with development work in Niue.

  2. The Governor-General may make an Order in Council varying the threshold in section IC 3(1)(a) and (b) applying to company A if satisfied that the company—

  3. is carrying on a business or enterprise that—
    1. has been or is carried on wholly or mainly for the development of Niue:
      1. has been or is important to the development of Niue; and
      2. has incurred expenditure wholly or mainly in deriving income from Niue or in the course of carrying on a business or enterprise in Niue for the purpose of deriving income.

        1. For the purposes of subsection (2), company A must be a company named in the order.

        2. The order may specify a period or periods to which it applies. If no period is specified, the order applies to the whole commonality period.

        3. An Order in Council under subsection (2) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

        Notes
        • Section IC 13: added (with effect on 1 April 2008), on , by section 299 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section IC 13(5) heading: inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
        • Section IC 13(5): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).