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Income Tax Act 2007

Deductions - Income equalisation schemes and environmental restoration accounts schemes

DQ 4: Environmental restoration accounts scheme

You could also call this:

“Tax deductions for payments into environmental restoration accounts”

You can get a deduction if you’ve made a payment to your environmental restoration account. The amount you can deduct is set out in section EK 7. To qualify for this deduction, you need to have made the payment to the Commissioner for a specific income year, as outlined in section EK 2. The payment shouldn’t have been refunded under section EK 9.

The deduction applies to the income year mentioned in section EK 7.

You can also get a deduction in an income year if you receive certain transfers. These include transfers under section EK 15 that are treated as if you made the payment yourself, transfers under section EK 16(3)(b) due to death, bankruptcy, or liquidation, and transfers under section EK 19 from an amalgamating company. The amount you can deduct for these transfers is set out in section EK 8.

This deduction for transfers applies to the income year mentioned in section EK 8.

These deductions are allowed under the general permission rule and override the capital limitation rule. However, other general limitations 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=DLM1514010.

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

DQ 4Environmental restoration accounts scheme

  1. A person is allowed a deduction of the amount set out in section EK 7 (Deduction for payment) if the person has made a payment for an income year to the Commissioner under section EK 2 (Persons who may make payment to environmental restoration account) and the amount is not refunded under section EK 9 (Refund of payment if excess, lacking details).

  2. The deduction under subsection (1) is allocated to the income year referred to in section EK 7.

  3. A person is allowed a deduction for an income year of the amount set out in section EK 8 (Deduction for transfer) if in an income year the person receives—

  4. a transfer under section EK 15 (Transfer on application) that is treated under section EK 15(3) as being a payment by the person:
    1. a transfer under section EK 16(3)(b) (Transfer on death, bankruptcy, or liquidation):
      1. a transfer under section EK 19 (Environmental restoration account of amalgamating company).

        1. A deduction under subsection (3) is allocated to the income year referred to in section EK 8.

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

        Compare
        Notes
        • Section DQ 4(3)(a): amended, on , by section 12(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
        • Section DQ 4 list of defined terms apply: inserted, on , by section 12(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).