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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 10B: Look-through companies

You could also call this:

"What happens to look-through companies when you split relationship property"

Illustration for Income Tax Act 2007

When you transfer a look-through interest for a look-through company as part of a settlement of relationship property, this section applies. You need to look at sections HB 4 to HB 10 to understand how this works. If you get a look-through interest from someone, you are treated as if you got it on the same date they did. When you get the look-through interest, you are also treated as if you had it for the whole time the other person had it, up to the date you got it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3683710.

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Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 10BLook-through companies

  1. This section applies for the purposes of sections HB 4 to HB 10 (which relate to transfers of interests) when a look-through interest for a look-through company is transferred on a settlement of relationship property.

  2. The transferee is treated as having acquired the look-through interest on the date it was acquired by the transferor, and to have held it at all times up to the date of transfer.

Notes
  • Section FB 10B: inserted, on (applying for income years beginning on or after 1 April 2011), by section 62(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).