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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 61: Surrender of certain emissions units for post-1989 forest land emissions

You could also call this:

“Using specific emissions units to meet obligations for post-1989 forest land”

If you have a pre-1990 forest land emissions unit or a fishing quota emissions unit, you can use it to meet your responsibility under the Climate Change Response Act 2002. This responsibility is about giving up units for post-1989 forest land.

When you do this, it’s treated as if you sold the emissions unit to someone you don’t know, and then bought it back right away. This happens just before you give up the unit. The price for this pretend sale and buy-back is whatever the unit is worth at that time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1793127.

Topics:
Environment and resources > Climate and energy
Money and consumer rights > Taxes
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DB 60B: Liabilities for emissions, or

“No tax deductions for certain emission-related costs in forestry”

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DB 62: Deduction for legal expenses, or

“You can claim up to $10,000 in legal fees as a tax deduction”

Part D Deductions
Specific rules for expenditure types

DB 61Surrender of certain emissions units for post-1989 forest land emissions

  1. This section applies when a person surrenders a pre-1990 forest land emissions unit or fishing quota emissions unit to meet a liability under the Climate Change Response Act 2002 to surrender units in relation to post-1989 forest land.

  2. The person is treated as having disposed of the emissions unit to an unrelated person and as having then reacquired it, in each case immediately before the surrender and for an amount equal to the unit's market value at the time.

Notes
  • Section DB 61: substituted (with effect on 1 July 2010), on , by section 22 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).