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Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Application

EH 63: Persons to whom thinning operations income equalisation scheme applies

You could also call this:

“Who can use the thinning operations income equalisation scheme”

The thinning operations income equalisation scheme is for companies that do certain things. You can use this scheme if your company does two things in one accounting year:

  1. You run a forestry business on land in New Zealand.
  2. You make money from thinning operations on that land.

When the rules talk about a “person” in this scheme, they mean a company that does both these things.

Thinning operations are when you remove some trees from a forest to help the remaining trees grow better. This scheme helps companies manage their income from these operations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514998.

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EH 62: Other definitions, or

“Definitions that were removed from this section of the tax law”

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EH 64: Thinning operations deposit, or

“Rules for depositing money into your thinning operations income equalisation account”

Part E Timing and quantifying rules
Income equalisation schemes: Application

EH 63Persons to whom thinning operations income equalisation scheme applies

  1. The thinning operations income equalisation scheme applies to a company that, in an accounting year,—

  2. carries on a forestry business on land in New Zealand; and
    1. derives income from carrying out thinning operations on the land.

      1. In the thinning operations income equalisation scheme, person means a person described in subsection (1).

      Compare
      Notes
      • Section EH 63 list of defined terms forestry business: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).