Non-attributing active CFCs

Heading: inserted (with effect on 30 June 2009), on 6 October 2009, by section 162(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

EX 21B Non-attributing active CFCs
Non-attributing active CFC

(1)

Non-attributing active CFC, for an accounting period and a person (the interest holder), means a CFC—

(a)

for which the interest holder is not affected by an election under section EX 73 for the accounting period; and

(b)

that meets the requirements of subsection (2) or (3), alone or as part of a test group of companies under section EX 21D or EX 21E.

CFC meeting test in section EX 21D or EX 21E

(2)

A CFC is a non-attributing active CFC—

(a)

under section EX 21D, if the CFC meets the requirements of that section and paragraph (b) does not apply:

(b)

under section EX 21E, if—

(i)

the CFC meets the requirements of section EX 21C for the use of an applicable accounting standard in the application of section EX 21E; and

(ii)

the person chooses to use the applicable accounting standard in applying section EX 21E; and

(iii)

the CFC meets the requirements of section EX 21E.

Insurer meeting requirements of determination

(3)

A CFC that is an insurer meeting the requirements of a determination made by the Commissioner under section 91AAQ of the Tax Administration Act 1994 is a non-attributing active CFC.

Single test for each CFC

(4)

In determining whether CFCs are non-attributing active CFCs for an accounting period under a test in section EX 21D or EX 21E, an interest holder must not use the result of a test applied to a test group that includes a CFC if the person, or a member of a wholly-owned group to which the person belongs, uses for the period a result of the same or a different test applied to the CFC, alone or as part of a different test group.

Part-period calculations

(5)

Section EX 21F sets out the requirements for a non-attributing active CFC when an interest holder holds an income interest for only part of an accounting period.

Defined in this Act: accounting period, CFC, group of companies, income interest, non-attributing active CFC

Section EX 21B: inserted (with effect on 30 June 2009), on 6 October 2009, by section 162(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section EX 21B(1): replaced (with effect on 30 June 2009), on 2 November 2012 (applying for income years beginning on or after 1 July 2009), by section 44(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section EX 21B(2)(b): amended, on 29 March 2018, by section 84(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section EX 21B(2)(b)(i): amended, on 29 March 2018, by section 84(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section EX 21B(2)(b)(ii): amended, on 29 March 2018, by section 84(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section EX 21B(2)(b)(iii): amended, on 29 March 2018, by section 84(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section EX 21B(4) heading: inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 24(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section EX 21B(4): inserted (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 24(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).

Section EX 21B(4): amended (with effect on 1 July 2009), on 30 June 2014, by section 89 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EX 21B(5) heading: inserted, on 29 March 2018 (with effect on 1 July 2009), by section 84(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section EX 21B(5): inserted, on 29 March 2018 (with effect on 1 July 2009), by section 84(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Section EX 21B list of defined terms group of companies: inserted (with effect on 30 June 2009), on 2 November 2012, by section 44(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Section EX 21B list of defined terms income interest: inserted, on 29 March 2018, by section 84(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).