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Tax Administration Act 1994

Determinations - Determinations relating to depreciation

91AAG: Determination on special rates and provisional rates

You could also call this:

"Asking for a special tax rate for certain items"

Illustration for Tax Administration Act 1994

You can ask the Commissioner for a special rate or a provisional rate for an item. The Commissioner decides whether to give you a special rate or a provisional rate. They consider factors like the item's useful life. You can use a special rate or a provisional rate for an item for a certain year or years. The Commissioner uses a formula from the Income Tax Act 2007 to work out the rate. They can round the figure up or down to the nearest rate. A provisional rate stops being used when an economic rate is set for that kind of item. The Commissioner can cancel a provisional rate if it is no longer used or available. They can also apply a special rate or a provisional rate to other items or people.

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Topics:
Money and consumer rights > Taxes
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91AAF: Determination on economic rate, or

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

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91AAH: Commissioner may decline to issue special rate or provisional rate, or

"The Commissioner can say no to a special or provisional rate if certain conditions are not met."

Part 5Determinations
Determinations relating to depreciation

91AAGDetermination on special rates and provisional rates

  1. A person may apply to the Commissioner for the issue of a determination allowing them to use for an item, for a specified income year or years,—

  2. a special rate higher or lower than the economic rate set in a determination under section 91AAF; or
    1. a provisional rate when no applicable rate, other than a default rate, is set in a determination under section 91AAF.

      1. When determining whether or not to grant an application for a special rate or a provisional rate, the level of any such rate, and the income year or years to which it applies, the Commissioner may have regard to any factors that are relevant in determining the item's estimated useful life, including an estimate based on a depreciation method or on a valuer's report, or a rate of depreciation that the person uses for the item for financial reporting purposes.

          1. The Commissioner may issue a determination setting a special rate or a provisional rate using, as applicable,—

          2. the formula in section EE 27 of the Income Tax Act 2007; or
            1. the formula in section EE 28 of that Act; or
              1. the formula in section EE 30 of that Act; or
                1. the formula in section EZ 23 of that Act; or
                  1. the straight-line method other than under paragraph (b).

                    1. The Commissioner may issue a determination setting a provisional rate after doing the following:

                    2. determining a figure using the applicable formula from subsection (3); and
                      1. rounding the figure up or down to the nearest rate specified in Schedule 11 or 12 of the Income Tax Act 2007.

                        1. A determination setting a provisional rate for an item and a person may also be expressed to apply to—

                        2. items of the same kind as the item:
                          1. any other person or class of persons.

                            1. A determination setting a special rate for an item and a person may also be expressed to apply to items, of the same kind as the item, for which the Commissioner considers the special rate is appropriate.

                            2. A determination setting a provisional rate ceases to apply to the item and the person, or any other person, at the time at which an economic rate set under section 91AAF for that kind of item comes into force, unless the determination specifically provides that it does not cease to apply.

                            3. The Commissioner may revoke a provisional determination if it no longer applies to an item or if the item is no longer in use or available for use. The revocation takes effect on the day after the date of publication of the Gazette in which notification under section 91AAM(4) is made.

                            Compare
                            • s EG 10(1)–(3), (5)
                            Notes
                            • Section 91AAG: 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 91AAG(1): amended, on , by section 137 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                            • Section 91AAG(1)(b): replaced (with effect on 1 April 2005), on (applying for 2005–06 and later income years), by section 647(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAG(2): amended, on (applying for 2005–06 and subsequent income years), by section 138(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
                            • Section 91AAG(2)(a): repealed, on (applying for 2005–06 and subsequent income years), by section 138(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
                            • Section 91AAG(2)(b): repealed, on (applying for 2005–06 and subsequent income years), by section 138(1) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
                            • Section 91AAG(3): replaced, on (applying for income years corresponding to 2005–06 and subsequent tax years), by section 239(1) of the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006 (2006 No 3).
                            • Section 91AAG(3): amended (with effect on 1 October 2005), on (applying for 2005–06 and later income years), by section 647(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAG(3)(a): 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 91AAG(3)(b): 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 91AAG(3)(c): 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 91AAG(3)(cb): inserted (with effect on 1 April 2005), on (applying for 2005–06 and later income years), by section 647(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAG(4)(a): replaced (with effect on 3 April 2006), on (applying for 2005–06 and later income years), by section 647(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                            • Section 91AAG(4)(b): 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 91AAG(5B): inserted, on (applying for 2005–06 and subsequent income years), by section 138(3) of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
                            • Section 91AAG(7): inserted (with effect on 1 April 2008), on (applying for 2008–09 and later income years), by section 647(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).