EW 8 Election to treat certain excepted financial arrangements as financial arrangements
Election

(1)

A person may choose to treat as financial arrangements—

(a)

all the excepted financial arrangements to which the person is a party that are described in any of section EW 5(21) to (25), if the expenditure under the agreements satisfies the general permission and is not denied by the general limitation as a deduction for the person:

(b)

any excepted financial arrangement to which the person is a party that is described in section EW 5(10).

Election for class of short-term agreements

(2)

A person may choose to treat as financial arrangements a class of short-term agreements for sale and purchase if the expenditure under the agreements satisfies the general permission and is not denied by a general limitation as a deduction for the person. The person must identify the class by—

(a)

the currency that applies to the agreements:

(b)

the term of the agreements.

How election made

(3)

The person makes an election by returning income derived or expenditure incurred under the chosen arrangements under the financial arrangements rules in their return of income.

How election revoked

(4)

The person revokes the election by giving notice to the Commissioner with their return of income and within the time that the return must be filed under section 37 of the Tax Administration Act 1994.

Effect of revocation

(5)

The revocation applies to excepted financial arrangements the person enters into after the income year in which the notice is given.

Defined in this Act: Commissioner, excepted financial arrangement, financial arrangement, financial arrangements rules, income, income year, notice, return of income, short-term agreement for sale and purchase

Compare: 2004 No 35 s EW 8

Section EW 8 heading: replaced (with effect on 27 September 2012), on 30 June 2014, by section 75(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(1) heading: replaced (with effect on 27 September 2012 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement, relying on an election made under section EW 8 as amended by section 50 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 and before its amendment by section 75(2) and (4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014: (i) in a return of income received by the Commissioner before 14 April 2014; (ii) under a determination or binding ruling made by the Commissioner before 14 April 2014; and chooses after 14 April 2014 to continue taking the tax position), on 30 June 2014, by section 75(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(1) heading: replaced (with effect on 17 July 2013 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement referred to in section 75(5)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 and chooses under section 75(5)(b) of that Act to continue taking the tax position), on 30 June 2014, by section 75(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(1): replaced (with effect on 1 April 2011 and applying for income years beginning on or after that date), on 30 March 2017, by section 71(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section EW 8(2) heading: replaced (with effect on 27 September 2012 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement, relying on an election made under section EW 8 as amended by section 50 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 and before its amendment by section 75(2) and (4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014: (i) in a return of income received by the Commissioner before 14 April 2014; (ii) under a determination or binding ruling made by the Commissioner before 14 April 2014; and chooses after 14 April 2014 to continue taking the tax position), on 30 June 2014, by section 75(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(2) heading: replaced (with effect on 17 July 2013 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement referred to in section 75(5)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 and chooses under section 75(5)(b) of that Act to continue taking the tax position), on 30 June 2014, by section 75(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(2): replaced (with effect on 27 September 2012 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement, relying on an election made under section EW 8 as amended by section 50 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 and before its amendment by section 75(2) and (4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014: (i) in a return of income received by the Commissioner before 14 April 2014; (ii) under a determination or binding ruling made by the Commissioner before 14 April 2014; and chooses after 14 April 2014 to continue taking the tax position), on 30 June 2014, by section 75(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(2): replaced (with effect on 17 July 2013 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement referred to in section 75(5)(a) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 and chooses under section 75(5)(b) of that Act to continue taking the tax position), on 30 June 2014, by section 75(3) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(3): amended (with effect on 27 September 2012 and applying for a person and an excepted financial arrangement on and after that date, except if the person takes a tax position for the excepted financial arrangement, relying on an election made under section EW 8 as amended by section 50 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 and before its amendment by section 75(2) and (4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014: (i) in a return of income received by the Commissioner before 14 April 2014; (ii) under a determination or binding ruling made by the Commissioner before 14 April 2014; and chooses after 14 April 2014 to continue taking the tax position), on 30 June 2014, by section 75(4) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section EW 8(5): amended (with effect on 1 April 2008), on 17 July 2013, by section 50(4) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).