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Income Tax Act 2007

Income - Exempt income

CW 55BAB: Rebate of fees paid by FIF

You could also call this:

"Getting a refund of fees paid by a foreign investment fund"

Illustration for Income Tax Act 2007

You have an attributing interest in a foreign investment fund. The fund pays fees to another person and you get a rebate of these fees. You are not allowed to deduct the fees and your FIF income is not calculated using the comparative value method. You get a rebate of fees from the other person. The amount of the rebate is exempt income. This means you do not have to pay tax on the rebate. The rules for this rebate are found in the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014. You should look at this act to understand more about the rebate. The rebate rules were inserted into the act on 1 April 2009.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5968505.

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Topics:
Money and consumer rights > Taxes
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Part CIncome
Exempt income

CW 55BABRebate of fees paid by FIF

  1. This section applies to a person having an attributing interest in a foreign investment fund when—

  2. the FIF pays fees to another person; and
    1. the person derives, from the other person, a rebate of the fees; and
      1. the person is not allowed a deduction for the fees; and
        1. the person's FIF income or loss from the interest is not calculated using the comparative value method.

          1. The amount of the rebate is exempt income.

          Notes
          • Section CW 55BAB: inserted (with effect on 1 April 2009), on , by section 20(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).