Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Definitions

EH 34: Meaning of income from forestry

You could also call this:

“What counts as income from selling timber from your own forest land”

Income from forestry means money you get from selling timber or the right to cut and remove timber. This includes permanent forestry income. For it to count as income from forestry, you need to own the land in New Zealand where the trees are grown. You can’t just have permission to use someone else’s land. The timber you’re selling can be standing trees, cut trees, or fallen trees that grew naturally on your land.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514895.

Topics:
Money and consumer rights > Taxes
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EH 33: Amount of tax credit, or

“How much tax credit you can get for paying more extra tax than you save”

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EH 35: Meaning of main maximum deposit, or

“Explaining the maximum amount you can deposit into your main income equalisation account”

Part E Timing and quantifying rules
Income equalisation schemes: Definitions

EH 34Meaning of income from forestry

  1. Income from forestry—

  2. means income derived from either or both of the disposals described in subsection (2) in the circumstances described in subsection (3):
    1. includes permanent forestry income.

      1. The disposals are—

      2. the disposal of timber:
        1. the disposal of a right to cut or remove timber.

          1. The circumstances are—

          2. the income is derived by a person who is the owner of land in New Zealand on which timber is grown, not including a person whose interest in the land is that of a licensee; and
            1. the timber the subject of the disposal is standing or cut or fallen timber in its natural state grown on the land.

              Compare
              Notes
              • Section EH 34(1): substituted (with effect on 1 April 2008), on , by section 18(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
              • Section EH 34(1)(a): 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 EH 34(1)(b): replaced, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).
              • Section EH 34(2) heading: replaced (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 EH 34(2): 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 EH 34(2)(a): 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 EH 34(2)(b): 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 EH 34(3)(b): 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 EH 34 list of defined terms permanent forestry income: inserted, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).
              • Section EH 34 list of defined terms PFSI forestry income: repealed, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).