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EZ 66: Prepayments
or “How KiwiRail can claim deductions for prepaid expenses”
You could also call this:

“Special rules for KiwiRail's leased assets and personal property lease payments”

If you are KiwiRail Holdings Limited, you need to know about some special rules for leased assets. For the 2012-13 income year, you have to work out how much you spent on personal property lease payments for Railways assets or liabilities. You do this as if the year started on 31 December, not at the usual time.

From the 2013-14 income year onwards, when you’re dealing with personal property lease payments, you need to act as if KiwiRail Holdings Limited and New Zealand Railways Corporation were the same company for all the time up to 31 December 2012. This helps you figure out how to handle these payments correctly.

These rules are part of a bigger set of rules about how to handle things when moving into a new way of dealing with life insurance. They’re designed to make the change easier and cover special cases that might come up.

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Next up: EZ 68: Definitions

or “Explains key terms used in specific sections of the Act”
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Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 67Leased assets

  1. KiwiRail Holdings Limited calculates, for the 2012–13 income year, an expenditure allocation under section EJ 10 (Personal property lease payments) for a personal property lease payment that is connected with a Railways asset or liability as if 31 December were the start of the 2012–13 income year.

  2. For the 2013–14 income year and later income years, section EJ 10 applies to KiwiRail Holdings Limited as if, for the period up to and including 31 December 2012, New Zealand Railways Corporation and KiwiRail Holdings Limited were the same person.

Notes
  • Section EZ 67: inserted (with effect on 31 December 2012), on , by section 54 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).