EX 17 Income interest if variations within period
When this section applies

(1)

This section applies when a person’s income interest in a CFC, calculated under sections EX 8 to EX 16, varies between days in a period.

Weighted average

(2)

The person’s income interest for the period is the total of the amounts for the period, each of which is calculated using the formula in subsection (3) for a day in the period.

Formula

(3)

The formula is—

income interest for day ÷ days in period.

Definition of items in formula

(4)

In the formula,—

(a)

income interest for day is—

(i)

the income interest during the day, if the income interest does not vary during the day:

(ii)

the income interest at the start of the day, if the income interest varies during the day:

(b)

days in period is the number of days in the period.

Defined in this Act: CFC, income interest

Compare: 2004 No 35 s EX 17