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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 4: Chatham Islands dues

You could also call this:

“Deductions for business-related Chatham Islands Council dues”

You can get a deduction for money you spend on dues charged under the Chatham Islands Council Act 1995. These dues must be for goods you use in your business.

You can claim this deduction in the same year you pay the dues.

When you calculate the cost of these goods for other deductions in your tax return, you can’t include the money you spent on these dues.

This rule adds to the general permission for deductions and overrides the capital limitation. However, other general limitations still apply. Also, this rule overrides the general permission when it comes to calculating the cost of goods for other deductions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513579.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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Part D Deductions
Specific rules for expenditure types

DB 4Chatham Islands dues

  1. A person is allowed a deduction for expenditure incurred on dues levied under the Chatham Islands Council Act 1995 that relate to goods that the person uses in connection with carrying on a business.

  2. The deduction is allocated to the income year in which the dues are paid.

  3. Expenditure to which subsection (1) applies must not be taken into account in calculating the cost of the goods for the purpose of a deduction relating to the goods under any other provision of this Act.

  4. The link between this section and subpart DA (General rules) is as follows:

  5. subsection (1) supplements the general permission and overrides the capital limitation; the other general limitations still apply:
    1. subsection (3) overrides the general permission.

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