CW 10 Dividend within New Zealand wholly-owned group
Exempt income

(1)

A dividend is exempt income if—

(a)

it is derived by a company (the recipient) that is resident in New Zealand; and

(b)

it is derived from a company (the payer) that is part of the same wholly-owned group of companies as the recipient at the time the dividend is derived; and

(c)

the payer is not a foreign company; and

(d)

the payer is not a company that can derive only exempt income; and

(e)

the requirements of subsections (3) to (6) are met.

Aligned balance dates[Repealed]

(2)

[Repealed]

Exclusion: dividends from council-controlled organisations

(3)

The dividend must not be derived by a local authority from—

(a)

a council-controlled organisation; or

(b)

a port company, subsidiary company of a port company, or energy company that would be a council-controlled organisation in the absence of section 6(4) of the Local Government Act 2002.

Exclusion: debt release dividends[Repealed]

(4)

[Repealed]

Exclusion: certain friendly society dividends

(5)

The dividend must not be derived by a friendly society from a company registered as an insurer under the Accident Insurance Act 1998 that is under the control of the society.

Exclusion: certain sickness, accident, or death benefit fund dividends

(6)

The dividend must not be derived by a trustee in trust for a sickness, accident, or death benefit fund from a company registered as an insurer under the Accident Insurance Act 1998 that is under the control of the trustee.

Defined in this Act: amount, company, council-controlled organisation, deduction, dividend, exempt income, foreign company, friendly society, income year, local authority, net income, New Zealand, resident in New Zealand, sickness, accident, or death benefit fund, tax avoidance arrangement, trustee, wholly-owned group of companies

Compare: 2004 No 35 s CW 10

Section CW 10(1)(e): amended, on 29 August 2011, by section 8(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section CW 10(2) heading: repealed, on 29 August 2011, pursuant to section 8(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section CW 10(2): repealed, on 29 August 2011, by section 8(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Section CW 10(4) heading: repealed (with effect on 1 April 2015), on 30 March 2017, pursuant to section 31 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section CW 10(4): repealed (with effect on 1 April 2015), on 30 March 2017, by section 31 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).