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EL 10: Exclusion for land held on revenue account
or “When land sales rules apply to residential property”
You could also call this:

“Certain big companies and government groups don't have to follow residential land rules”

You don’t have to follow the rules in Section EL 4 for residential land if you’re a company that isn’t a close company. This means if you’re a big company with lots of shareholders, these rules don’t apply to you.

The rules also don’t apply if you’re one of the government organisations listed in Schedule 36. These are special groups that work for the government.

So, if you own residential land and you’re either a big company or a government group on that list, you don’t need to worry about the rules in Section EL 4.

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Next up: EL 12: Exclusion for mixed-use assets

or “Some residential land isn't subject to Section EL 4 if it's a mixed-use asset”
Next

Part E Timing and quantifying rules
Allocation of deductions for excess residential land expenditure: Exclusions from rules

EL 11Exclusion for property held by certain persons and entities

  1. Section EL 4 does not apply to residential land owned by—

  2. a company other than a close company:
    1. a person or entity listed in schedule 36 (Government enterprises).

      Notes
      • Section EL 11: inserted (with effect on 1 April 2019), on , by section 62(1) (and see section 62(2) and (3) for application) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).