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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 59: Market value substituted

You could also call this:

"When you pay too much, the law uses the market value instead"

Illustration for Income Tax Act 2007

You might not be able to claim a deduction under section GC 7 if you have to pay an excess amount. You might be treated as if you paid an amount for something, like buying trading stock under section GC 1, or leasing a property under section GC 5. This rule can change or add to the usual rules about what you can and cannot claim.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513755.

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Topics:
Money and consumer rights > Taxes
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Part DDeductions
Specific rules for expenditure types

DB 59Market value substituted

  1. A person may be denied a deduction under section GC 7 (Excess amount payable by person).

  2. A person may be treated as providing an amount—

  3. for acquisition of trading stock, under section GC 1 (Certain disposals of trading stock at below market value):
    1. for lease of a property, under section GC 5 (Leases for inadequate rent).

      1. Subsection (1) overrides, and subsection (2) supplements, the general permission. The general limitations still apply.

      Compare
      Notes
      • Section DB 59(2)(a): amended, on , by section 39 of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).