Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Deposits and accounts

EH 64: Thinning operations deposit

You could also call this:

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

You can pay money to the Commissioner to put into your thinning operations income equalisation account. You can do this in a year when you make money from thinning trees.

There’s a limit to how much you can put in. You can’t put in more than your maximum deposit amount for the year.

You also can’t put in less than $200, unless that would make you go over your maximum deposit amount.

You can make a deposit in three ways:

  1. During the accounting year
  2. During a set time after the accounting year ends, but you need to tell the Commissioner it’s for that year
  3. After the set time, if the Commissioner allows it, but you still need to say which year it’s for

If you’ve already gotten money back from your account that year (under section EH 71 or EH 73), you can only make another deposit if the Commissioner agrees that you’ve used all the money you got back to grow your business.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515002.

Topics:
Money and consumer rights > Taxes
Previous

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

“Who can use the thinning operations income equalisation scheme”

Next

EH 65: Thinning operations income equalisation account, or

“Managing your forestry income account for tax purposes”

Part E Timing and quantifying rules
Income equalisation schemes: Deposits and accounts

EH 64Thinning operations deposit

  1. A person may make a payment to the Commissioner for entry in their thinning operations income equalisation account for an accounting year in which they derive income from carrying out thinning operations.

  2. A person must not make, for an accounting year, deposits that in total are more than their thinning operations maximum deposit for the accounting year.

  3. A person must not make, for an accounting year, a deposit that is less than the lesser of—

  4. $200; and
    1. the difference between the total of all the deposits the person has previously made for the accounting year and their thinning operations maximum deposit for the accounting year.

      1. A person makes a deposit for an accounting year by—

      2. making the deposit during the accounting year; or
        1. doing both the following:
          1. making the deposit during the specified period for the accounting year; and
            1. at the time of making it, giving the Commissioner notice that the deposit is for the accounting year; or
            2. doing both the following:
              1. making the deposit within a time that is after the end of the specified period for the accounting year but that is allowed by the Commissioner in a case or class of cases; and
                1. at the time of making it, giving the Commissioner notice that the deposit is for the accounting year.

                2. If a refund has been made to a person for an accounting year under section EH 71 or EH 73, the person may later make a deposit for the accounting year only if the Commissioner is satisfied, before the deposit is made, that all the refund has been used to expand or develop the person’s business.

                Compare