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New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Spreading of specific expenditure

EJ 9: Avoidance arrangements

You could also call this:

“Rules to prevent misuse of tax deductions for film and petroleum expenses”

The law says that when you claim deductions for certain expenses, the amount you can claim might be adjusted. This applies to deductions related to film rights, film production costs, and petroleum mining.

If you try to use clever arrangements to get more deductions than you should, the law has ways to stop this. There are two main rules that can change how much you can claim:

  1. If you make arrangements to buy film rights or spend money on film production in a way that’s not normal, the amount you can claim might be changed.

  2. If you delay paying for film production costs or make the payments depend on certain things happening, the amount you can claim might also be changed.

These rules are there to make sure people don’t use tricky ways to get more tax deductions than they should.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515115.

Topics:
Money and consumer rights > Taxes
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EJ 8: Film production expenditure for other films having no large budget film grant, or

“Tax deductions for film production without large budget grants”

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EJ 10: Personal property lease payments, or

“How to spread payments for leasing personal property over time”

Part E Timing and quantifying rules
Spreading of specific expenditure

EJ 9Avoidance arrangements

  1. The allocation of a deduction under any of sections EJ 4, EJ 5, EJ 7, and EJ 8 may be subject to adjustment under—

  2. section GB 18 (Arrangements to acquire film rights or incur production expenditure):
    1. section GB 19 (When film production expenditure payments delayed or contingent).

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