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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - National standard cost scheme

EC 24: Methods for determining costs using national standard cost scheme

You could also call this:

“How the Commissioner calculates livestock costs under the national standard cost scheme”

The Commissioner decides how to calculate the cost of livestock listed in schedule 18, column 2. They must create a way to find an average cost for all specified livestock valued under the national standard cost scheme. This process needs to consider three things:

  1. The number of homebred livestock you have at any time in an income year, using the national standard costs from section EC 23.

  2. The number of each type of livestock listed in schedule 18, column 2 that you have at any time in an income year, also using the national standard costs from section EC 23.

  3. The number of livestock you bought (not homebred), using the costs of buying them.

The Commissioner can include other things in their decision, as listed in section 91AAD of the Tax Administration Act 1994.

The Commissioner’s decision about how to calculate costs is considered secondary legislation, which means it needs to follow the rules in Part 3 of the Legislation Act 2019 about how it’s published.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514402.

Topics:
Money and consumer rights > Taxes
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EC 23: Determining national standard costs, or

“How the Commissioner sets standard costs for raising farm animals”

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EC 25: Cost price, replacement price, or market value, or

“How to value your specified livestock using cost, replacement, or market prices”

Part E Timing and quantifying rules
Valuation of livestock: National standard cost scheme

EC 24Methods for determining costs using national standard cost scheme

  1. The Commissioner must determine the methods for calculating the cost of livestock listed in schedule 18, column 2 (Categories of livestock for which national standard costs to be declared).

  2. For the purposes of subsection (1), the determination must establish a process for finding an average cost to be applied to all specified livestock valued under the national standard cost scheme. The process must take into account—

  3. the number of homebred livestock that a person has on hand at any time in an income year, applying to the number the relevant national standard costs determined under section EC 23:
    1. in addition to paragraph (a), the number in each category of livestock listed in schedule 18, column 2 that a person has on hand at any time in an income year, applying to the number the relevant national standard costs determined under section EC 23:
      1. the number of livestock acquired other than by way of being homebred, applying to the number the acquisition costs associated with the livestock.

        1. The matters that may be included in the determination are set out in section 91AAD of the Tax Administration Act 1994.

        2. A determination under subsection (1) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

        Compare
        Notes
        • Section EC 24(2)(c): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section EC 24(4) heading: inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
        • Section EC 24(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).