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DO 12: Improvements to aquacultural business
or “Tax deductions for aquaculture business improvements”
You could also call this:

“Claiming deductions for damaged aquaculture improvements”

If you run an aquaculture business in New Zealand, you might be able to claim a deduction for improvements that have been destroyed or made useless. This applies when:

You have a qualifying aquaculture business as described in section DO 12(1)(b).

You’ve made improvements to your business that are listed in schedule 20.

Something has destroyed or badly damaged these improvements so that you can’t use them to earn income anymore.

You would have been able to claim a deduction for these improvements under section DO 12 if they hadn’t been destroyed.

The damage happened in the 2005-06 tax year or later.

The damage wasn’t caused by you, someone working for you, or anyone connected to you.

If all of these things are true, you can claim a deduction for the reduced value of the improvements in the year the damage happened.

This rule overrides some of the usual tax rules, but other general limitations still apply.

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Next up: DP 1: Expenditure of forestry business

or “Claiming expenses for your forestry business in New Zealand”
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Part D Deductions
Farming and aquacultural business expenditure

DO 13Improvement destroyed or made useless

  1. This section applies when, in an income year of a person,—

  2. the person carries on an aquacultural business in New Zealand—
    1. that meets the requirements of section DO 12(1)(b); and
      1. for the purposes of which an improvement described in schedule 20 (Expenditure on farming, horticultural, aquacultural, and forestry improvements) has been made; and
      2. the improvement is destroyed or irreparably damaged and made useless for the purpose of deriving income; and
        1. the person would be entitled for the income year to a deduction under section DO 12 for expenditure on the improvement if the improvement had not been destroyed or irreparably damaged and made useless; and
          1. the damage occurs in an income year that corresponds to the 2005–06 tax year or a later tax year; and
            1. the damage is caused other than as a result of the action or failure to act of the person, an agent of the person, or an associated person.

              1. The person is allowed a deduction of the amount of the diminished value, for the income year, of the expenditure on the improvement.

              2. This section overrides the general permission and the capital limitation. The other general limitations still apply.

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