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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Definitions

EC 27: Some definitions

You could also call this:

“Explains what long-term and short-term livestock bailment means”

In this part of the law, you’ll learn about two important terms related to livestock: long-term bailment and short-term bailment.

A long-term bailment is when you give your livestock to someone else, and you don’t expect to get the same animals back. This could be for various reasons, like selling or trading them.

A short-term bailment is different. It happens when you give your livestock to someone else, but you do expect to get the same animals back. There are three important things to know about short-term bailment:

  1. You expect to get the same animals back that you gave.
  2. The person who takes care of your animals doesn’t pay you for looking after them.
  3. The arrangement lasts for a short time - it must end by the end of the next income year after you made the arrangement.

These definitions help you understand the different ways you might handle your livestock when working with other people or businesses.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514414.

Topics:
Money and consumer rights > Taxes
Environment and resources > Farming and fishing
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“Rules for valuing livestock not on the specified list”

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 27Some definitions

  1. In this subpart,—

    long-term bailment is a bailment or lease under which, at the time a person delivers livestock, the person does not expect to have the same livestock delivered back to them

      short-term bailment is a bailment or lease under which,—

      1. at the time a person delivers livestock, the person expects to have the same livestock delivered back to them; and
        1. the bailee or lessee did not provide consideration to the person for the delivery of the livestock; and
          1. the term of the bailment or lease ends on or before the end of the income year following the income year in which the arrangement is made.

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