Income Tax Act 2007 section 56

Excluded activities: provision of services or facilities for another business

Section 56 modifies the rules on excluded activities relating to the provision of services or facilities for another business, specifically for shares issued before 6 April 2007.

• For shares issued before 6 April 2007, the excluded activities rule in section 199 applies with specific modifications as referenced through section 137(7).
• In subsections (1) to (4) of section 199, every occurrence of the word "business" is replaced with the word "trade".
• In subsection (5), references to a trade in relation to the provider of services or facilities are to be read without regard to the statutory definition of "trade" in section 989.
• For the other person receiving the services or facilities, "trade" is given a broad meaning that includes any business, profession or vocation.