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Income Tax Act 2007

Deductions - Forestry expenditure

DP 6: Forestry encouragement agreement: no deduction

You could also call this:

“No deduction for exempt advance payments under forestry agreements”

If you have made a forestry encouragement agreement under the Forestry Encouragement Act 1962, you can’t claim a deduction for some money in certain situations. This happens when you get an advance payment under the agreement, and that payment is exempt income according to section CW 2. If you later don’t have to pay back some or all of the advance, you can’t claim a deduction for that amount. This rule applies even if you would normally be allowed to claim a deduction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513989.

Topics:
Money and consumer rights > Taxes
Environment and resources > Farming and fishing
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Part D Deductions
Forestry expenditure

DP 6Forestry encouragement agreement: no deduction

  1. A person who has made a forestry encouragement agreement under the Forestry Encouragement Act 1962 is denied a deduction for an amount equal to the amount from which they are relieved in the following circumstances:

  2. an advance is made to the person under the agreement; and
    1. the advance is exempt income of the person under section CW 2 (Forestry encouragement agreements); and
      1. the person is later relieved from some or all of their liability to repay the principal.

        1. This section overrides the general permission.

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