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Income Tax Act 2007

Definitions and related matters - Measurement of company ownership

YC 5B: Treatment of mixed-ownership enterprises

You could also call this:

“How the government's ownership in mixed-ownership enterprises is treated for tax purposes”

You need to know how the government’s ownership in a mixed-ownership enterprise is treated. The law says to treat it the same way as the government’s ownership in a special corporate entity. This helps figure out who is considered to hold the shares and rights that represent the government’s ownership, and how those shares and rights are treated.

If a special corporate entity changes to become a mixed-ownership enterprise, you don’t have to worry about breaking any rules about who owns how much. The government’s ownership is still okay.

When you want to know more about how this works, you can look at Section YC 5 of the law. It explains the details about treating the government’s ownership in these types of companies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4593655.

Topics:
Money and consumer rights > Taxes
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“ Ignoring specific types of company securities and options when applying certain tax rules ”

Part Y Definitions and related matters
Measurement of company ownership

YC 5BTreatment of mixed-ownership enterprises

  1. Section YC 5 applies to the Crown’s interest in a mixed-ownership enterprise in the same way as it does to the Crown’s interest in a special corporate entity to determine—

  2. who is treated as holding those shares and related rights that represent the Crown’s interest in the enterprise:
    1. how those shares and related rights are treated as being held.

      1. If a special corporate entity changes its status to become a mixed-ownership enterprise, no breach of shareholding arises in relation to the Crown’s interest.

      Notes
      • Section YC 5B: inserted, on , by section 11 of the Public Finance (Mixed Ownership Model) Amendment Act 2012 (2012 No 45).