Plain language law

New Zealand law explained for everyone

Tax Administration Act 1994

Determinations - Determinations relating to livestock

91AAD: Determination on methods for calculating value of specified livestock under national standard cost scheme

You could also call this:

"How to calculate the value of farm animals"

Illustration for Tax Administration Act 1994

You need to know how to calculate the value of livestock. A determination under section EC 24 of the Income Tax Act 2007 can help with this. It sets out methods for calculating the average cost of livestock. You can use one or more methods to calculate the average cost. These methods can include homebred and purchased livestock. The determination can also set out age groupings for livestock. The determination can provide inventory control methods for mature livestock. It can also set out how to value livestock when using different valuation methods, such as section EC 22 of the Income Tax Act 2007. This includes market value, replacement price, and the high-priced livestock valuation method. The determination can set conditions for valuing livestock. It can also provide for the valuation of livestock when switching from one valuation method to another. The determination can apply to different classes of people and income years. The determination can be extended, limited, varied, or revoked. This means it can be changed or updated as needed. You can find more information about the Income Tax Act 2007 on the New Zealand legislation website.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353636.

Topics:
Money and consumer rights > TaxesBusiness > Industry rulesEnvironment and resources > Farming and fishing
Previous

91AAC: Exemptions from section EA 3 of Income Tax Act 2007, or

"Exceptions to income tax rules for some people or groups"

Next

91AAE: Publication and revocation of determinations relating to livestock, or

"Rules for Changing Livestock Tax Decisions"

Part 5Determinations
Determinations relating to livestock

91AADDetermination on methods for calculating value of specified livestock under national standard cost scheme

  1. This section describes the matters that a determination under section EC 24 of the Income Tax Act 2007 may provide.

  2. The determination may provide 1 or more methods for calculating the average cost of each type, class, or age grouping of livestock that a person has on hand at the end of an income year, and for incorporating the costs for homebred livestock and purchased livestock in that average cost.

  3. The determination may provide for the age groupings of immature and mature livestock of each type to which the average costs apply.

  4. The determination may provide 1 or more inventory control methods under which mature livestock must be accounted for, or the setting of minimum standards for an inventory control method.

  5. The determination may provide the way in which the determination applies when animals of the same type, class, or other category are valued both under section EC 22 of the Income Tax Act 2007 and under another valuation method. For the purposes of this section, the other valuation methods are market value, replacement price, and the high-priced livestock valuation method.

  6. The determination may provide for conditions or limitations on the valuation of livestock under section EC 22 of the Income Tax Act 2007, including—

  7. a restriction on valuing livestock of a particular type, class, or other category under that section if livestock of the same type, class, or category are also valued under another valuation method; and
    1. the setting of a notice requirement for elections of valuation method for livestock affected by a restriction imposed under paragraph (a).

      1. The determination may provide for the valuation of livestock when livestock was previously valued using another valuation method.

      2. The determination may provide for 1 or more classes of person by whom the determination may be applied, and for the income year or years for which it is to apply.

      3. The determination may provide for the extension, limitation, variation, or revocation of an earlier determination.

      Compare
      • s EL 4(6)
      Notes
      • Section 91AAD: inserted, on (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
      • Section 91AAD(1): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
      • Section 91AAD(5): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
      • Section 91AAD(6): amended, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).