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Tax Administration Act 1994

Determinations - Determinations relating to depreciation

91AAF: Determination on economic rate

You could also call this:

"The Commissioner decides the economic rate for certain items."

Illustration for Tax Administration Act 1994

The Commissioner can make a decision about the economic rate for certain items. You can find the procedure for this in section EE 27, section EE 28, section EE 30, or section EZ 23 of the Income Tax Act 2007. The Commissioner can set the rate for a type of item. The Commissioner can decide to apply the economic rate to items of a certain kind. This can be based on when the item was acquired or used. You can learn more about secondary legislation in Part 3 of the Legislation Act 2019. The Commissioner can change or cancel a decision about the economic rate.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353642.

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Money and consumer rights > Taxes
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Part 5Determinations
Determinations relating to depreciation

91AAFDetermination on economic rate

  1. Having followed the procedure in section EE 27, EE 28, EE 30, or EZ 23 of the Income Tax Act 2007, the Commissioner may set in a determination—

  2. only the diminishing value rate for the kind of item; or
    1. both the diminishing value rate and the straight-line rate for the kind of item.

      1. For the purposes of subsection (1), the rate set by the Commissioner may be a default rate for kinds of items of depreciable property.

      2. An economic rate set in a determination may be expressed to apply in any way, including—

      3. to items of a kind, whenever they are acquired or used; or
        1. to items of a kind, having regard to—
          1. the date on which, or income year in which, a particular person acquired or used such an item; or
            1. the date on which, or income year in which, any person first acquired or used such an item; or
              1. whether or not such an item has been used before in New Zealand or elsewhere or has been available for use before in New Zealand or elsewhere.
                2. This subsection is overridden by subsection (3).

              2. A determination setting an economic rate cannot be expressed to apply to an item of depreciable property that—

              3. is already subject to a higher economic rate under an existing determination; and
                1. is acquired—
                  1. before the date on which the new determination is issued; or
                    1. after the date on which the new determination is issued, under a binding contract entered into before that date.
                      2. This subsection is overridden by subsection (4).

                    2. A determination setting an economic rate can be expressed to apply to an item of depreciable property that—

                    3. is already subject to a higher economic rate under an existing determination; and
                      1. is reacquired after the date on which the new determination is issued, by the person who disposed of it before the date on which the new determination is issued.

                        1. A determination made under this section may apply to an item of depreciable property to which section EE 27, EE 28, or EE 30 of the Income Tax Act 2007 applies if the item is acquired or used by a person before the commencement of this section.

                        2. The Commissioner may revoke a determination setting an economic rate.

                        3. The following are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements):

                        4. a determination under this section:
                          1. a revocation of a determination under this section.

                            Compare
                            • s EG 4(2), (6), (7)
                            Notes
                            • Section 91AAF: 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 91AAF(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 91AAF(1B): inserted (with effect on 1 April 2005), on (applying for 2005–06 and later income years), by section 646(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAF(4)(b): replaced (with effect on 3 April 2006), on (applying for 2005–06 and later income years), by section 646(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAF(5): inserted, on (applying for income years corresponding to 2005–06 and subsequent tax years), by section 238(3) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                            • Section 91AAF(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 91AAF(6): inserted (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 646(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAF(6): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                            • Section 91AAF(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).