Telecommunications Act 2001

Structural separation of Telecom - Taxation consequences of structural separation

69XS: Expenditure or loss incurred, and amounts derived

You could also call this:

"Working out what a company can claim as expenses or income"

Illustration for Telecommunications Act 2001

When the law looks at a Chorus company and a Telecom company, it treats them as the same person for a certain period of time. This is for the purpose of working out some things under the Income Tax Act 2007. You need to consider whether the Chorus company can claim a deduction for money it spent or lost in connection with certain assets or liabilities.

The law also looks at how much the Chorus company can deduct in connection with these assets or liabilities. It considers whether money the Chorus company received in connection with these assets or liabilities is income. You also need to work out how much income the Chorus company has from these assets or liabilities.

The Chorus company and the Telecom company are treated as the same person to make these decisions.

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This page was last updated on 28 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4187735.

Topics:

Money and consumer rights > Taxes

69XR: Prepayments, or

"Paying for things before they are used"

69XT: Bad debts, or

"What happens to unpaid debts when a telecom company changes hands"

Part 2AStructural separation of Telecom
Taxation consequences of structural separation

69XSExpenditure or loss incurred, and amounts derived

A Chorus company and the relevant Telecom company are treated as the same person for the period prior to and including the appointed day for the purpose of determining the following, under the Income Tax Act 2007:
whether a deduction is allowed for an amount of expenditure or loss incurred by the Chorus company in connection with the designated assets or liabilities:
the amount of any deduction of the Chorus company in connection with the designated assets or liabilities:
whether an amount derived by the Chorus company in connection with the designated assets or liabilities is income:
the amount of any income of the Chorus company in connection with the designated assets or liabilities.

Notes

Section 69XS: inserted, on 30 November 2011 (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 51 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).