Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 60B: Liabilities for emissions

You could also call this:

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

You can’t claim a deduction for certain liabilities related to emissions. This applies in two cases:

  1. If you have to pay for emissions from post-1989 forest land or pre-1990 forest land under the Climate Change Response Act 2002.

  2. If you have to give emissions units to the government as part of a permanent forestry scheme.

In both these cases, you’re not allowed to claim these costs as a deduction from your taxes. This rule overrides the general permission that usually allows you to claim deductions.

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 It might be out of date or be missing some parts.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=DLM2533760.

Topics:
Money and consumer rights > Taxes
Environment and resources > Climate and energy
Environment and resources > Farming and fishing
Previous

DB 60: Acquisition of emissions units, or

“Tax rules for receiving free emissions units”

Next

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

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

Part D Deductions
Specific rules for expenditure types

DB 60BLiabilities for emissions

  1. This section applies when a person incurs a liability—

  2. under the Climate Change Response Act 2002 for emissions relating to post-1989 forest land or pre-1990 forest land:
    1. to transfer emissions units to the Crown under a permanent forestry scheme.

      1. The person is denied a deduction for the liability.

      2. Subsection (2) overrides the general permission.

      Notes
      • Section DB 60B: inserted (with effect on 1 April 2008), on , by section 81(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DB 60B(1): substituted (with effect on 1 January 2009), on , by section 21(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section DB 60B(1)(b): replaced, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).
      • Section DB 60B list of defined terms emissions unit: inserted (with effect on 1 January 2009), on , by section 21(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
      • Section DB 60B list of defined terms permanent forestry scheme: inserted, on , by section 279 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).