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DB 3: Determining tax liabilities
or “How to claim tax deductions for costs related to managing your tax affairs”
You could also call this:

“Deducting interest payments required by tax law”

You can deduct the amount of interest you have to pay under Part 7 of the Tax Administration Act 1994.

The timing of when you can claim this deduction is set out in section EF 5.

This rule adds to the general permission for deductions. It also overrides the capital limitation, the private limitation, and the employment limitation. However, the other general limitations still apply to this deduction.

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Next up: DB 4: Chatham Islands dues

or “Deductions for business-related Chatham Islands Council dues”
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Part D Deductions
Specific rules for expenditure types

DB 3BUse of money interest

  1. A person is allowed a deduction for an amount of interest they are liable to pay under Part 7 of the Tax Administration Act 1994.

  2. The deduction is allocated under section EF 5 (Use of money interest payable by person).

  3. This section supplements the general permission and overrides the capital limitation, the private limitation, and the employment limitation. The other general limitations still apply.

Notes
  • Section DB 3B: inserted (with effect on 1 April 2008), on , by section 13(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).