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Income Tax Act 2007

Income - Adjustments

CH 10B: Interest apportionment: public project debt

You could also call this:

“How to split and count interest on public project debt for tax purposes”

If you are an excess debt entity, you might need to split up the interest you pay on public project debt. This happens when section FE 7B tells you to do so. If this applies to you, you need to work out how much of that interest should be counted as income. The amount you calculate using section FE 7B(3) becomes part of your income for the tax year. This means you’ll need to include this amount when you’re figuring out how much tax you owe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS65038.

Topics:
Money and consumer rights > Taxes
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Part C Income
Adjustments

CH 10BInterest apportionment: public project debt

  1. This section applies when an excess debt entity is required under section FE 7B (Interest on public project debt for certain excess debt entities) to apportion its interest expenditure arising from public project debt.

  2. The amount calculated under section FE 7B(3) is income of the excess debt entity for the income year.

Notes
  • Section CH 10B: inserted, on , by section 5(1) (and see section 5(2) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).