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New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 52: Adjustment for change to accounting practice

You could also call this:

“How to handle tax adjustments when you change your accounting method”

If you have to change how you do your accounting, you might owe money or be owed money. This is explained in another part of the law called section EG 2(2) or (3).

If this happens to you, you can take off the amount of money that’s involved from your taxes. This is called a deduction. The amount you can deduct and when you can do it is also explained in section EG 2.

This rule adds to the general permission for deductions, but you still need to follow all the other rules about deductions too.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513733.

Topics:
Money and consumer rights > Taxes
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“Rules for tax deductions on international financial reporting standard leases”

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“Deductions for specific losses from multi-rate PIEs”

Part D Deductions
Specific rules for expenditure types

DB 52Adjustment for change to accounting practice

  1. This section applies when a person has, under section EG 2(2) or (3) (Adjustment for changes to accounting practice), an amount owed by them or an amount owing to them as quantified in those subsections.

  2. The person is allowed a deduction of the amount as quantified and allocated under section EG 2.

  3. This section supplements the general permission. The general limitations still apply.

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