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Income Tax Act 2007

Deductions - Forestry expenditure

DP 9B: Treaty of Waitangi claim settlements: rights to take timber

You could also call this:

“Treatment of new timber rights after cancelled rights in Treaty settlements”

If you had a right to take timber that was cancelled, and you were given new rights to take timber instead, this law might apply to you. It only applies if the cancellation of your old right was treated as exempt income under section CW 1B.

When you get new rights to take timber, the law treats each new right as if you bought it. The cost is considered to be the same as what you spent on the old right, but only for the part that relates to the land covered by the new right. This cost is only counted if you haven’t already claimed it as a tax deduction.

Remember, this only applies to the specific land area that your new timber rights cover. Any money you spent on the old right that doesn’t relate to this land isn’t included.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3997200.

Topics:
Money and consumer rights > Taxes
Environment and resources > Farming and fishing
Māori affairs > Treaty of Waitangi
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DP 9: Cost of acquiring timber: forestry business on land acquired from the Crown, Maori owners, or holding company, or

“How to calculate the cost of timber when buying forested land from specific sellers”

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DP 10: Cost of acquiring timber or right to take timber: other cases, or

“How to calculate the cost when buying timber or rights to timber in various situations”

Part D Deductions
Forestry expenditure

DP 9BTreaty of Waitangi claim settlements: rights to take timber

  1. This section applies when a person's right to take timber (the old right) has been extinguished, and new rights (the new rights) to take timber are granted to the person in place of the old right, if section CW 1B (Treaty of Waitangi claim settlements: rights to take timber) applied to exempt income for the extinguishing of the old right.

  2. The person who is granted the new rights is treated, for each new right, as having acquired the new right for a cost equal to the expenditure they incurred in relation to the old right, but only to the extent that the expenditure relates to the land covered by the new right and has not been deducted previously.

Notes
  • Section DP 9B: inserted (with effect on 1 April 2008), on , by section 17 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).