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Income Tax Act 2007

Deductions - Income equalisation schemes and environmental restoration accounts schemes

DQ 1: Main income equalisation scheme

You could also call this:

“Tax deductions for farmers who save income in a special scheme”

You can get a tax deduction if you put money into the main income equalisation scheme for a tax year. The amount you can deduct is explained in section EH 7(2). You can claim this deduction in the income year that matches the tax year mentioned in section EH 7(3).

This rule adds to the general permission for tax deductions and overrides the capital limitation. However, other general limitations on tax deductions still apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514004.

Topics:
Money and consumer rights > Taxes
Environment and resources > Farming and fishing
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Part D Deductions
Income equalisation schemes and environmental restoration accounts schemes

DQ 1Main income equalisation scheme

  1. A person who has made a deposit for a tax year is allowed a deduction of the amount quantified in section EH 7(2) (Deduction of deposit).

  2. The deduction is allocated to the income year corresponding to the tax year described in section EH 7(3).

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

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