IS 12/01
Issued
20 Jun 2012

Income tax: timing of share transfers for the purposes of the continuity provisions

This interpretation statement sets out the Commissioner’s view on who 'holds' shares in a company and at what point during a sale of shares is there a change in who 'holds' the shares. The Commissioner’s view of these matters is in regard of s YC 2 and the 'continuity provisions' of the Income Tax Act 2007. The continuity provisions provide the rules for the carry forward and offsetting of losses, excess tax credits and credits in memoranda accounts based on shareholder-decision making rights carried by shares “held” by a person.