Exemption for interests of 10% or more in a CFC

Section EX 34 of the Income Tax Act 2007

A person does not have an attributing interest in a FIF if they have an income interest of 10% or more in a CFC (including any interests held by associated persons). The person will instead have a CFC interest and will apply the CFC rules to that interest. This is provided for by section EX 34, which is unchanged by this Act.

A person with less than a 10% income interest in a CFC (including any interests held by associated persons) will have an attributing interest in a FIF (unless another exemption from the FIF rules applies).