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Tax Administration Act 1994

Determinations - Determinations relating to environmental restoration expenditure

91AAN: Determinations on rates for diminishing value of environmental expenditure

You could also call this:

"Asking for a rate to claim back environmental costs over time"

Illustration for Tax Administration Act 1994

You can ask the Commissioner to set a rate for the diminishing value of environmental expenditure. This is for the purpose of section DB 46 of the Income Tax Act 2007. The Commissioner may determine a rate for a type of expenditure listed in Schedule 19 of the Income Tax Act 2007. You can use a diminishing value rate or a straight-line rate. The Commissioner may take into account how long the expenditure will be effective. They may also consider the treatment of the expenditure in your financial reports. The Commissioner must give you notice of the determination within 30 days. If the determination applies to a class of people, the Commissioner must publish a notice. You can dispute or challenge the determination under Parts 4A and 8A. The determination may set out the income year it applies to. It cannot apply to income years before the 2005–06 income year. The Commissioner may extend, limit, vary, cancel, or revoke an earlier determination.

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Part 5Determinations
Determinations relating to environmental restoration expenditure

91AANDeterminations on rates for diminishing value of environmental expenditure

  1. A person or a group of persons may apply to the Commissioner to set a rate or an assumed life for the purpose of section DB 46 of the Income Tax Act 2007.

  2. The Commissioner may determine that the person, group, or a class of persons is to use for a type of expenditure listed in Schedule 19, Part A of the Income Tax Act 2007 or, for expenditure that is part of such a type of expenditure, for the purposes of section DB 46(4)(c) of that Act,—

  3. a diminishing value rate that is a banded rate set out in Schedule 12, column 1 of that Act:
    1. a straight-line rate that is a banded rate set out in Schedule 12, column 2 of that Act.

      1. The Commissioner may decline to issue a determination under subsection (1) if—

      2. the information that is supplied to the Commissioner by the person or group is insufficient for the calculation of an appropriate rate:
        1. the Commissioner considers that the alternative rate for the expenditure differs from the banded rate set out for the expenditure in Schedule 19 of the Income Tax Act 2007, or in an existing applicable determination, by less than half the difference between that banded rate and the banded rate that is next closest to the alternative rate.

          1. In making a determination, the Commissioner may take into account—

          2. the length of time for which the expenditure may reasonably be expected to be effective for the purpose for which it was incurred:
            1. the length of time for which the expenditure may reasonably be expected to be effective for the purpose of earning income:
              1. the treatment of the expenditure in the person's financial reports:
                1. the life of any resource consent that is associated with the expenditure:
                  1. an estimate based on a depreciation method or on a valuer's report.

                    1. The determination may set out the income year or income years for which it is to apply, but may not apply for income years before the 2005–06 income year.

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

                    3. A person affected by a determination made under this section may dispute or challenge the determination under Parts 4A and 8A.

                    4. Within 30 days of issuing a determination under subsection (1), the Commissioner must give notice of the determination to the person or group who applied for the determination.

                    5. Within 30 days of issuing a determination under subsection (1) that is expressed to apply to a class of persons, the Commissioner must publish a notice in a publication chosen by the Commissioner that—

                    6. gives notice that the determination has been issued; and
                      1. states where copies of the determination can be obtained.

                        Notes
                        • Section 91AAN: inserted, on , by section 140 of the Taxation (Base Maintenance and Miscellaneous Provisions) Act 2005 (2005 No 79).
                        • Section 91AAN(1): amended, on , by section 139(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                        • Section 91AAN(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 91AAN(2): 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 91AAN(2)(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 91AAN(2)(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 91AAN(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 91AAN(8): amended, on , by section 139(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                        • Section 91AAN(9): amended, on , by section 148 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).