Tax Administration Act 1994

Determinations - Determinations relating to depreciation

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

You could also call this:

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

Illustration for Tax Administration Act 1994

The Commissioner can decide not to give you a special rate or a provisional rate. This can happen when you apply for a special rate and certain circumstances exist. These circumstances include when the difference between the current economic rate and the special rate is not big enough. The Commissioner can also decline your application for a special rate if they are already reviewing the economic rate for the item. They might do this if they plan to set a new economic rate within six months of getting your application. You might not get a special rate if you have not given the Commissioner enough information to work out the rate. The same thing can happen when you apply for a provisional rate. The Commissioner can decline your application if an economic rate already applies to the item. They can also decline it if the difference between the default rate and the provisional rate is not big enough, according to the rates in Schedule 11 or Schedule 12 of the Income Tax Act 2007. You might not get a provisional rate if the Commissioner is already working out an economic rate for the item and plans to set it within six months. The Commissioner can also decline your application if you have not given them enough information to work out the rate.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM353656.

Topics:

Money and consumer rights > Taxes

91AAG: Determination on special rates and provisional rates, or

"Asking for a special tax rate for certain items"

91AAI: Effect on special rate of change in circumstances, or

"What happens to a special tax rate when circumstances change"

Part 5Determinations
Determinations relating to depreciation

91AAHCommissioner may decline to issue special rate or provisional rate

The Commissioner may decline to issue a determination under section 91AAG when,—
for an application for a special rate, one of the circumstances described in subsection (2) exists:
for an application for a provisional rate, one of the circumstances described in subsection (3) exists.

For the purposes of subsection (1)(a), the circumstances are as follows:
the difference between the economic rate already applicable to the item and an appropriate special rate would be less than 50% of the difference between the already applicable economic rate and the next higher or lower rate, as applicable, in—
1. Schedule 11 of the Income Tax Act 2007, if the item is acquired on or after 1 April 2005; or
2. Schedule 12 of that Act, if the item is acquired before 1 April 2005; or
the Commissioner is reviewing the economic rate applicable to the item and intends to set a new economic rate equal to or more than an appropriate special rate within 6 months of the Commissioner receiving the person's application for a special rate; or
the person has supplied insufficient information to enable the Commissioner to calculate an appropriate rate.

For the purposes of subsection (1)(b), the circumstances are as follows:
an economic rate, other than a default rate, already applies to the item; or
if a default rate applies to the item, the difference between the default rate and the provisional rate would be less than 50% of the difference between the default rate and the next higher or lower rate, as applicable, in—
1. Schedule 11 of the Income Tax Act 2007, if the item is acquired on or after 1 April 2005; or
2. Schedule 12 of that Act, if the item is acquired before 1 April 2005; or
the Commissioner is in the process of determining an economic rate applicable to the item for the income year to which the application relates and intends to set it within 6 months of the Commissioner receiving the person's application for a provisional rate; or
the person has supplied insufficient information to enable the Commissioner to calculate an appropriate rate.

Compare

s EG 10(4)

Notes

Section 91AAH: inserted, on 1 April 2005 (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 91AAH(2)(a): replaced (with effect on 1 April 2008), on 7 September 2010 (applying for 2008–09 and later income years), by section 145(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
Section 91AAH(3)(a): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 648(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 91AAH(3)(ab): replaced (with effect on 1 April 2008), on 7 September 2010 (applying for 2008–09 and later income years), by section 145(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).