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EC 47B: Removal of high-priced bloodstock from New Zealand after earlier deductions
or “Tax consequences for exporting expensive racehorses before use in New Zealand”
You could also call this:

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

If you want to start breeding horses for racing or other purposes, you’re called a prospective bloodstock breeder. The law says you’re treated as if you’re running a breeding business from the day you buy special horses to start your breeding operation. These special horses are called stud-founding bloodstock.

You’re considered to be in this business until one of these things happens:

You actually start your breeding business using these special horses.

You’re treated as if you’ve sold these horses under [section EC 47(1)].

You’re treated as if you’ve sold these horses under [section EC 47B].

You’re treated as if you’ve sold these horses under [section EC 47D].

You start a breeding business using different horses, but only if the Commissioner has said it’s okay for your special horses to be part of this business under [section EC 47E].

Even though you’re treated as if you’re in a breeding business, any other horses you own during this time aren’t considered part of your breeding business.

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Next up: EC 47D: Change of prospective bloodstock breeders’ expectation or intention after earlier deductions

or “Tax rules for racehorses bought for breeding but no longer used for that purpose”
Next

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 47CWhen prospective breeders treated as being in breeding business

  1. A prospective bloodstock breeder is treated as having, and carrying on, a bloodstock breeding business on and from the day on which the prospective bloodstock breeder acquires stud-founding bloodstock until the earliest of the following days:

  2. the day on which the prospective bloodstock breeder commences a bloodstock breeding business using the stud-founding bloodstock:
    1. the day on which the prospective bloodstock breeder is treated as having disposed of the stud-founding bloodstock under section EC 47(1):
      1. the day on which the prospective bloodstock breeder is treated as having disposed of the stud-founding bloodstock under section EC 47B:
        1. the day on which the prospective bloodstock breeder is treated as having disposed of the stud-founding bloodstock under section EC 47D:
          1. the day on which the prospective bloodstock breeder commences a bloodstock breeding business using bloodstock that are not stud-founding bloodstock, if the Commissioner has approved an application under section EC 47E for the stud-founding bloodstock to be treated as being used in the course of the business.

            1. Despite subsection (1), if the prospective bloodstock breeder owns bloodstock that are not stud-founding bloodstock during the period of time described in that subsection, those bloodstock are not treated as part of the prospective bloodstock breeder’s bloodstock breeding business.

            Notes
            • Section EC 47C: 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).