DO 13 Improvement destroyed or made useless
When this section applies


This section applies when, in an income year of a person,—


the person carries on an aquacultural business in New Zealand—


that meets the requirements of section DO 12(1)(b); and


for the purposes of which an improvement described in schedule 20 (Expenditure on farming, horticultural, aquacultural, and forestry improvements) has been made; and


the improvement is destroyed or irreparably damaged and made useless for the purpose of deriving income; and


the person would be entitled for the income year to a deduction under section DO 12 for expenditure on the improvement if the improvement had not been destroyed or irreparably damaged and made useless; and


the damage occurs in an income year that corresponds to the 2005–06 tax year or a later tax year; and


the damage is caused other than as a result of the action or failure to act of the person, an agent of the person, or an associated person.

Deduction: diminished value of expenditure


The person is allowed a deduction of the amount of the diminished value, for the income year, of the expenditure on the improvement.

Link with subpart DA


This section overrides the general permission and the capital limitation. The other general limitations still apply.

Defined in this Act: business, capital limitation, deduction, diminished value, general limitation, general permission, income, income year, tax year

Compare: 2004 No 35 s DO 7