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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”
You could also call this:

“Starting a bloodstock breeding business with previously purchased stud-founding bloodstock”

When you start a bloodstock breeding business using bloodstock that are not stud-founding bloodstock, this section may apply to you.

If you own stud-founding bloodstock that you bought as a prospective bloodstock breeder, you can ask the Commissioner to treat this bloodstock as part of your new business.

You need to ask the Commissioner within 1 month of starting your business. You also need to provide any information the Commissioner asks for to support your request.

If the Commissioner says yes to your request, some rules about recovering money after making deductions for high-priced bloodstock will not apply to you and your stud-founding bloodstock from the day you started your business. These rules are found in sections CG 8B, CG 8C, and EC 47B to EC 47D.

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Next up: EC 48: Replacement breeding stock

or “Rules for replacing breeding stock in a bloodstock breeding business”
Next

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 47EProspective breeders commencing actual breeding businesses

  1. This section applies when, ignoring section EC 47C, a bloodstock owner commences a bloodstock breeding business using bloodstock that are not stud-founding bloodstock.

  2. If the bloodstock owner owns stud-founding bloodstock they acquired as a prospective bloodstock breeder, they may apply to the Commissioner to have the stud-founding bloodstock treated as being used in the course of the business.

  3. The application must be made with the supporting information that the Commissioner requires within 1 month after the day on which the business commenced.

  4. If the Commissioner approves the application, sections CG 8B (Recoveries after deductions for high-priced bloodstock removed from New Zealand), CG 8C (Recoveries after deductions for high-priced bloodstock disposed of to non-residents), and EC 47B to EC 47D are, from the date on which the business commenced, treated as not applying in relation to the bloodstock owner and the stud-founding bloodstock.

Notes
  • Section EC 47E: 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).