DV 14Amalgamated company: expenditure on improvements for farming, horticultural, aquacultural, and forestry businesses

1. This section applies when—

2. an amalgamating company ends its existence on a resident’s restricted amalgamation; and
3. the amalgamated company acquires land or a business from the amalgamating company; and
4. the amalgamating company would have been allowed a deduction under any of section DO 4, DO 5, DO 6, DO 12, or DP 3 (which relate to improvements and expenditure on land) for the land or business if the amalgamation had not occurred.

5. While the amalgamated company holds the land or carries on the business, it is allowed the deduction that the amalgamating company would have been allowed under section DO 4, DO 5, DO 6, DO 12, or DP 3.

6. This section supplements the general permission. The general limitations still apply.

Compare

• 2004 No 35 s DV 13