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Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 42: Transfer of radiocommunications licence right on or after 24 September 1997

You could also call this:

“Rules for transferring radio licence rights to connected persons after 24 September 1997”

When someone who owns management rights under the Radiocommunications Act 1989 gives a licence right to someone they’re connected with on or after 24 September 1997, this rule applies to you. However, it doesn’t apply if the Crown, acting through the Secretary of Commerce, is named as the manager under section 11(1) of the Radiocommunications Act 1989.

If you’re the person who receives this licence right, the cost of the licence is treated as zero when figuring out how much depreciation loss you have. This means you can’t claim any depreciation on the licence right for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514643.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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EE 43: Transfer of depreciable intangible property on or after 1 July 1997, or

“Rules for receiving non-depreciable intangible property from a related party”

Part E Timing and quantifying rules
Depreciation

EE 42Transfer of radiocommunications licence right on or after 24 September 1997

  1. This section applies when, on or after 24 September 1997, the holder of management rights created under the Radiocommunications Act 1989 grants a licence right under that Act to an associated person.

  2. This section does not apply when the Crown acting by and through the Secretary of Commerce is named as the manager under section 11(1) of the Radiocommunications Act 1989.

  3. For the purposes of determining the amount of depreciation loss that the associated person has, the cost of the licence right to the associated person is treated as zero.

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