FE 16BTotal group non-debt liabilities

1. In this subpart, for a New Zealand group, total group non-debt liabilities for an income year means the total of the outstanding balances of liabilities shown in the financial statements of a natural person, or an excess debt entity, or another member of the New Zealand group, reduced by the total of liabilities shown in the financial statements, each of which is—

2. included in the calculation of total group debt under section FE 15:
3. under a financial arrangement, other than an agreement for the sale and purchase of property or services, entered into by a company that is a member of the group with a shareholder of a company that is a member of the group, if the financial arrangement provides funds to the company and—
   1. the funding is provided under an arrangement between shareholders and the amount of the funds provided by each shareholder is proportional to the voting interest of each shareholder at the time:
   2. the shareholder and associated persons hold 10% or more of the voting interests in the company:
4. under a financial arrangement, other than an agreement for the sale and purchase of property or services, entered into by a trustee of a trust that is a member of the group with a settlor of the trust, if—
   1. the financial arrangement provides funds to the trust; and
   2. the settlor has made settlements on the trust totalling 10% or more of the value of total settlements on the trust:
5. a share in a company that is a member of the group held by a shareholder, if—
   1. the share was issued as part of a share issue to shareholders and the number of shares issued to each shareholder was proportional to the voting interest of each shareholder at the time:
   2. the shareholder and associated persons hold 10% or more of the voting interests in the company:
6. a provision for dividends:
7. a deferred liability for tax that a person chooses to include in a reduction under this section if—
   1. the deferred liability arises from a difference between the value shown in the financial statements of the person for an asset and the amount of depreciation loss remaining available to the person for the asset; and
   2. the deferred liability is for an amount of tax that would not arise if the asset were sold for the value shown in the financial statements; and
   3. the value shown in the financial statements for the asset is calculated by reference to the amount that the person is allowed as a deduction or depreciation loss for the asset, or on the basis that the asset is non-depreciable or depreciable at a rate of zero.

8. In this subpart, for a worldwide group, total group non-debt liabilities for an income year means the total of the outstanding balances of liabilities shown in the financial statements of the worldwide group, reduced by the total of liabilities that are included in the total group debt and the total of liabilities under financial arrangements that are removed under section FE 18(3B) from the measurement of total group debt.

9. If a shareholder is a company,—

10. for the purposes of subsection (1)(b) and (c), the shareholder’s equity group is treated as the shareholder for all the shares held by members of the equity group; and
11. for the purposes of subsection (1)(b), the shareholder’s equity group is treated as the provider of all the funds that are provided by members of the equity group.

12. If a shareholder is a trustee of a trust,—

13. for the purposes of subsection (1)(b) and (c), the trustee is treated as the shareholder for all the shares held by a settlor of the trust and relatives of the settlor, if the settlor and relatives have made at least 90% of the settlements made on the trust; and
14. for the purposes of subsection (1)(b), the trustee is treated as the provider of all the funds that are provided by a settlor of the trust and relatives of the settlor, if the settlor and relatives have made at least 90% of the settlements made on the trust.

15. In this section, for a shareholder, equity group—

16. means the members of the wholly-owned group if the shareholder is a member of the wholly-owned group, or the shareholder company itself:
17. includes—
    1. the group of persons (the natural group) who are relatives and that holds 100% of the voting interests in a member of the wholly-owned group or in the shareholder company itself, as the case may be:
    2. if a member of the natural group is a trustee of a trust, a settlor of the trust and relatives of the settlor if the settlor and relatives have made at least 90% of the settlements made on the trust.