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FE 36: Identifying members of New Zealand banking group in usual case
or “How banks and related entities form a New Zealand banking group”
You could also call this:

“Identifying members of government-owned banks without interest division requirements”

This section explains how to identify members of a New Zealand banking group when the bank is owned by the government and doesn’t need to divide its interest.

You are part of a New Zealand banking group if you are a registered bank that is fully owned by the government or a public authority. This means the government or a public authority holds all the voting rights in your bank.

The banking group includes your registered bank and anyone who has 100% of the voting rights in your bank.

If you live in New Zealand, you can also be part of the banking group if you are included in the group’s financial reports. This is based on the Financial Reporting Act 2013. You might still be in the group even if you’re not big enough to be included in the reports.

This rule applies when the usual rules about dividing interest wouldn’t affect any of the group members.

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Next up: FE 37: Reporting bank for New Zealand banking group

or “How to identify the reporting bank in a New Zealand banking group”
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Part F Recharacterisation of certain transactions
Interest apportionment on thin capitalisation: New Zealand banking group

FE 36BIdentifying members of New Zealand banking group: Crown-owned, no interest apportionment

  1. The New Zealand banking group of a registered bank consists of the entities given by this section if—

  2. each voting interest in the registered bank is held by—
    1. the Sovereign in right of New Zealand:
      1. a public authority; and
      2. in the absence of this paragraph and sections EX 15, FE 2(5), FE 38(b) and (d), and FE 41(1), none of the entities that would be part of the banking group under this section would be a person to whom the interest apportionment rules might apply under section FE 2.

        1. The banking group includes—

        2. the registered bank:
          1. a person with a direct voting interest of 100% in the registered bank.

            1. A resident person is included in the banking group if the person,—

            2. under the Financial Reporting Act 2013, or under section 55 of that Act and the Financial Reporting Act 1993, is a member of the group for which the registered bank is the reporting entity:
              1. would be a member of the group referred to in paragraph (a) but for the relevant materiality thresholds.

                Notes
                • Section FE 36B: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on , by section 65(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).
                • Section FE 36B(1)(a): replaced (with effect on 1 July 2016 and applying for the 2016–17 and later income years), on , by section 104(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section FE 36B(3) heading: amended, on , by section 96(1) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                • Section FE 36B(3)(a): replaced, on , by section 96(2) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                • Section FE 36B(3)(b): replaced, on , by section 96(2) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                • Section FE 36B list of defined terms public authority: inserted (with effect on 1 July 2016), on , by section 104(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                • Section FE 36B list of defined terms resident: repealed, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                • Section FE 36B list of defined terms resident in New Zealand: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                • Section FE 36B list of defined terms voting interest: inserted (with effect on 1 July 2016), on , by section 104(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).