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EC 47: Change of use of bloodstock in course of business
or “Rules for changing how you use horses in a breeding business”
You could also call this:

“Tax consequences for exporting expensive racehorses before use in New Zealand”

This section of the law talks about what happens when you take a very expensive horse (called high-priced bloodstock) out of New Zealand before it has been used for racing or breeding in the country. It applies to you if you’re someone who plans to breed horses and you’ve already claimed some money back on your taxes for this expensive horse.

If you do take the horse out of New Zealand before it has raced or been used for breeding there, the law says it’s like you’ve sold the horse. This means you might have to pay back some of the money you claimed on your taxes.

Remember, this only applies to very expensive horses that are meant for racing or breeding, and only if you’ve already gotten some tax benefits for having the horse. It’s the government’s way of making sure people don’t just buy expensive horses, claim tax benefits, and then take the horses away without using them in New Zealand as intended.

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Next up: EC 47C: When prospective breeders treated as being in breeding business

or “Rules for treating prospective horse breeders as operating a breeding business”
Next

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 47BRemoval of high-priced bloodstock from New Zealand after earlier deductions

  1. This section applies when—

  2. high-priced bloodstock is removed from New Zealand before being—
    1. first raced in New Zealand:
      1. used for breeding in New Zealand; and
      2. a person who is a prospective bloodstock breeder has been allowed a deduction in relation to the high-priced bloodstock.

        1. The person is treated as having disposed of the high-priced bloodstock.

        Notes
        • Section EC 47B: inserted (with effect on 1 January 2019), on , by section 162(1) (and see section 162(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).