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EK 21: Notices in electronic format
or “Sending tax notices electronically as required by Inland Revenue”
You could also call this:

“Explains how to calculate the most you can put into an environmental restoration account each year”

In this part of the law, you’ll learn about the ‘maximum payment’ for an environmental restoration account. This is the most money you can put into this account in one year.

The maximum payment is the smaller of two amounts. The first amount is the difference between the highest amount allowed in the account for that year and how much is actually in the account at the end of the year. The second amount is worked out using a special calculation.

If you had money in your account in the 2005-2006 year, there’s a special way to work out your maximum payment for that year and the next few years until 2010-2011. It uses a formula that looks at how much the highest allowed amount has gone up, how many years it’s been since 2005-2006, and how much is currently in your account.

The formula uses some special terms. ‘Level increase’ is how much the highest allowed amount has gone up since 2005-2006. ‘Year’ starts at 1 for 2005-2006 and goes up by 1 each year, but only to 5. ‘Initial level’ is the highest amount allowed in 2005-2006. ‘Contents’ is how much is in your account at the end of the year.

This rule helps you figure out how much you can add to your environmental restoration account each year, making sure you don’t put in more than is allowed.

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Next up: EK 23: Other definitions

or “Definitions and calculations for your environmental restoration account”
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Part E Timing and quantifying rules
Environmental restoration accounts

EK 22Meaning of maximum payment

  1. In this subpart, maximum payment means the maximum payment that under subsection (2) a person may make to the person’s environmental restoration account for an income year.

  2. The maximum payment that a person may make for an income year is the lesser of—

  3. the amount by which the maximum account balance for the income year for the environmental restoration account is more than the amount in the environmental restoration account at the end of the income year:
    1. the amount, if any, calculated under subsection (3) for the person and the income year.

      1. If a person has a maximum account balance for the 2005–06 income year that is more than zero, the amount referred to in subsection (2)(b) for the person and for that income year, and for each of the later income years before the 2010–11 income year, is the amount calculated using the formula—

        level increase + (year × 0.2 × initial level) − contents.

        Where:

        • In the formula,—

        • level increase is the greater of zero and the amount by which the maximum account balance for the income year is more than the maximum account balance for the 2005–06 income year:
          1. year is 1 for the 2005–06 income year and increases by 1 for each successive income year to a maximum of 5 for the 2009–10 income year:
            1. initial level is the maximum account balance for the 2005–06 income year:
              1. contents is the amount in the environmental restoration account at the end of the income year.

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