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Income Tax Act 2007

Income - Income from business or trade-like activities

CB 8: Disposal: land used for landfill, if notice of election

You could also call this:

“Tax rules for selling land previously used as a landfill if you notify the tax office”

If you sell land that you used as a landfill, the money you get from selling it might be counted as income. This happens if:

You’re not using the land as a landfill when you sell it.

The person buying the land isn’t someone closely connected to you.

You tell the tax office (the Commissioner) that you want this rule to apply to your land. You need to do this within 12 months of buying the land or by 24 June 2006, whichever is later.

You agree to follow this rule for all the land you buy and use as a landfill.

Anyone closely connected to you also agrees to follow this rule for their landfill land.

Remember, this rule only applies if you choose to tell the tax office about it. If you do, it will affect how the money from selling your old landfill is treated for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512419.

Topics:
Money and consumer rights > Taxes
Environment and resources > Town planning
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CB 7: Disposal: land acquired for purposes of business relating to land, or

“Money from selling land may be taxable if bought for land-related business purposes”

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CB 9: Disposal within 10 years: land dealing business, or

“Income from selling land within 10 years if you or a close associate deal in land”

Part C Income
Income from business or trade-like activities

CB 8Disposal: land used for landfill, if notice of election

  1. An amount that a person derives from disposing of land is income of the person if—

  2. the person uses the land as a landfill before disposing of the land; and
    1. at the time of disposal, the land is not being used as a landfill; and
      1. the person acquiring the land is not an associated person; and
        1. the person notifies the Commissioner of an election that the land be subject to this section by the day that is the later of the following:
          1. the day that is 12 months after the day on which the person acquires the land:
            1. 24 June 2006; and
            2. the person makes an election under paragraph (d) for all land that the person acquires and uses as a landfill; and
              1. any person associated with the person makes an election under paragraph (d) for all land that the associated person acquires and uses as a landfill.

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                Notes
                • Section CB 8(c): substituted, on (applying for the 2010–11 and later income years), by section 7(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section CB 8(d): amended, on , by section 5(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section CB 8 list of defined terms notice: inserted, on , by section 5(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                • Section CB 8 list of defined terms notify: inserted, on , by section 5(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).