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Income Tax Act 2007

Income - Exempt income

CW 1: Forestry companies established by the Crown, Maori owners, and holding companies acquiring land with standing timber from founders

You could also call this:

“Tax rules for forestry companies buying land with trees from the Crown, Māori owners, or holding companies”

When a forestry company buys land with standing timber from the Crown, Maori owners, or a holding company that owns the forestry company, special rules apply. If the Maori Trustee or a trustee for a Maori owner sells the land, it’s treated as if the beneficial owners sold it. If a Maori incorporation sells the land, it’s treated as if the members of the incorporation sold it.

The money the seller gets for the standing timber, as described in section CB 25(3), is exempt income. This means they don’t have to pay tax on it.

Section DP 9 explains how the forestry company should calculate the cost of buying the timber when they acquire the land from the Crown, Maori owners, or a holding company.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513127.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
Māori affairs > Māori land
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Part C Income
Exempt income

CW 1Forestry companies established by the Crown, Maori owners, and holding companies acquiring land with standing timber from founders

  1. This section applies when a forestry company acquires land with standing timber on it from a seller who is the Crown, the Maori owners, or a holding company of the forestry company.

  2. For the purposes of subsection (1),—

  3. land disposed of to the forestry company by the Maori Trustee or by a trustee for a Maori owner is treated as if it had been disposed of by the beneficial owners:
    1. land disposed of to the forestry company by a Maori incorporation is treated as if it had been disposed of by the members of the incorporation.

      1. The amount described in section CB 25(3) (Disposal of land with standing timber) is exempt income of the seller.

      2. Section DP 9 (Cost of acquiring timber: forestry business on land acquired from the Crown, Maori owners, or holding company) deals with the cost to the forestry company of acquiring the timber.

      Compare
      Notes
      • Section CW 1 heading: amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section CW 1(1): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section CW 1(2) heading: amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section CW 1(2)(a): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section CW 1(2)(b): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
      • Section CW 1(4): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).