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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Herd scheme

EC 20: Herd livestock disposed of before values determined

You could also call this:

“ What to do if you sell farm animals before the government sets their value ”

This law talks about what happens when you sell your farm animals before the government decides how much they’re worth. It applies if you stop making money from selling these animals and you sell them before November 1st.

There’s a special rule if you transfer your animals to someone else in certain ways. In that case, this law might not apply, but it depends on how you do the transfer.

When you sell your animals in this situation, you use their value from the previous year to figure out how much they’re worth. If you’ve been using a special calculation method, you’ll use that to work out the value.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514392.

Topics:

Money and consumer rights > Taxes

Environment and resources > Farming and fishing

EC 19: Chatham Islands adjustment to herd value, or

“Special value adjustment for livestock on the Chatham Islands”

EC 21: Herd livestock on death before values determined, or

“Outdated rule about valuing herd livestock that died before assessment”

Part E Timing and quantifying rules
Valuation of livestock: Herd scheme

EC 20Herd livestock disposed of before values determined

This section applies when, in an income year, a person—
stops deriving income from the disposal of specified livestock; and
disposes of specified livestock before the 1 November that precedes the determination of the national average market values for the income year; and

This section does not apply when, in an income year, a person's specified livestock is disposed of, and section EC 4B(4) applies to the transfer. However, if section EC 4C(4) applies to the transfer, then this section may apply.
The value of herd livestock that is disposed of is either the herd value of the livestock for the previous income year or, if the person has adopted a herd value ratio, the herd value multiplied by the herd value ratio applying in the previous income year.

Compare

2004 No 35 s EC 20

Notes

Section EC 20(1)(a): amended (with effect on 1 April 2012 and applying for the 2012–13 and later income years), on 17 July 2013, by section 43(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section EC 20(1)(b): amended (with effect on 1 April 2012 and applying for the 2012–13 and later income years), on 17 July 2013, by section 43(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section EC 20(1)(c): repealed (with effect on 1 April 2012 and applying for the 2012–13 and later income years), on 17 July 2013, by section 43(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section EC 20(1B) heading: inserted (with effect on 1 April 2012 and applying for the 2012–13 and later income years), on 17 July 2013, by section 43(4) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
Section EC 20(1B): inserted (with effect on 1 April 2012 and applying for the 2012–13 and later income years), on 17 July 2013, by section 43(4) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).