EE 67Other definitions

1. In this Act,—

   depreciation method means a method described in section EE 12

   diminishing value method means the method of calculating an amount of depreciation loss for an item of depreciable property by subtracting, in each income year, a constant percentage of the item’s adjusted tax value from the item’s adjusted tax value

   diminishing value rate means the rate that a person using the diminishing value method applies to an item of depreciable property

   economic rate means the economic depreciation rate of an item of depreciable property, set under sections EE 27 to EE 30

   estimated residual market value means, for an item of depreciable property, its market value at the end of its estimated useful life, estimated reasonably as at the date of acquisition and based on an assumption of normal and reasonable maintenance over its estimated useful life

   fixed life intangible property means property that—

   1. is depreciable intangible property; and
   2. has a legal life that could reasonably be expected, on the date of the property’s acquisition, to be the same length as the property’s remaining estimated useful life

   improvement means an alteration, extension, or repair of an item of depreciable property that increases its capital value

   international aircraft means a jet-engined aircraft that a person uses in an income year mainly in regular commercial service to transport passengers between New Zealand and any other place

   legal life,—

   1. for an item to which paragraphs (b) to (d) do not apply, means the number of years, months, and days for which an owner’s interest in an item of intangible property exists under the contract or statute that creates the owner’s interest, assuming that the owner exercises any rights of renewal or extension that are either essentially unconditional or conditional on the payment of predetermined fees:
   2. for an item that is a patent application, a design registration application, a patent, or a design registration, means the legal life under paragraph (a) that a patent or design registration would have if granted when the relevant application is first lodged:
   3. for an item that is industrial artistic copyright, means the number of years, months, and days for which protection against copyright infringement is available as a result of section 75(1)(c) to (e) of the Copyright Act 1994:
   4. for an item that is plant variety rights, means the total of—
      1. the legal life that the rights would have under paragraph (a); and
      2. the number of whole calendar months during which the person owns the plant variety rights application in relation to which the rights are granted:
   5. for a person and a right (a land right) that is a leasehold estate, or a licence to use land, means the number of years, months, and days for which the person or an associated person has an owner's interest in the land right, or in a consecutive or successive land right, under the contract or statute that creates the owner's interest, determined—
      1. when the person acquires the owner's interest; and
      2. assuming that the person or associated person exercises rights of renewal, extension, or further grant that are either essentially unconditional or conditional on the payment of predetermined fees

   petroleum-related depreciable property means depreciable property that is—

   1. petroleum drilling rigs; or
   2. support vessels for offshore petroleum drilling rigs; or
   3. support vessels for offshore petroleum production platforms

   pool means items of depreciable property that a person chooses under section EE 12 to depreciate as a pool using the pool method

   pool method means the method of calculating an amount of depreciation loss set out in section EE 21

   provisional rate means a provisional rate as described in section EE 35

   special excluded depreciable property means all buildings that are not items specified in schedule 39 (Items for purposes of definition of special excluded depreciable property)

   special excluded depreciable property

   special rate means a special rate as described in section EE 35

   straight-line method means the method of calculating an amount of depreciation loss for an item of depreciable property by subtracting, in each income year, a constant percentage of the item’s cost, to its owner, from the item’s adjusted tax value

   straight-line rate means the rate that a person using the straight-line method applies to an item of depreciable property.