Where—

the expression ‘dividends’ shall, for the purposes of this Act, be deemed not to include that profit or increase or gain to the extent to which that profit or increase or gain exceeds any capital losses incurred in the income year (or, as the case may be, the accounting year of the company corresponding with that year) in which that profit or increase or gain was made or in any subsequent year (being losses not already taken into account under this subsection or in calculating the assessable income of the company for any year).”

Where the Commissioner is satisfied that on or after the first day of April, nineteen hundred and sixty-one, and before the first day of April, nineteen hundred and sixty-three, any building—

the Commissioner may in his discretion, subject to the provisions of this section and to section 117 of this Act, allow as a deduction in calculating the assessable income derived by the taxpayer from the business in the income year in which the building is first so used an initial depreciation allowance of twenty per cent of the cost of the building.

The initial depreciation allowance authorised by this section shall be in addition to any deduction which may be allowed under section 113 of this Act.

Without limiting the discretion of the Commissioner under this section, it is hereby declared that the Commissioner may refuse in whole or in part to allow any deduction under this section in respect of any building—

Subject to subsection (6) of this section, any taxpayer engaged in any farming or agricultural business on any land in New Zealand shall, in calculating the assessable income derived by him from that business in any income year, be entitled to deduct any expenditure incurred in that business during the income year, and not deductible otherwise than under this section, in—

“Provided that, instead of claiming a deduction for the income year of the total amount of the expenditure allowable as a deduction under the foregoing provisions of this subsection, the taxpayer shall, if he so elects by notice in writing (which election shall, subject to the second proviso to this subsection, be irrevocable) given to the Commissioner within the time within which he is required to furnish a return of his income for the income year or within such further time as the Commissioner in his discretion may allow in any case or class of cases, be entitled to apportion that total amount equally between the income year and any number of subsequent income years not exceeding four in which the taxpayer continues to carry on that business and to deduct the part so apportioned to any such year in calculating the assessable income derived by him from that business in that year:

“Provided also that, should the taxpayer cease to carry on that business before the commencement of any income year to which any part of that total amount has been so apportioned, that total amount shall be reapportioned equally between the income year in which it was incurred and the subsequent income years in which the taxpayer has continued to carry on that business, and any additional amount so apportioned to any such year shall be allowed as a further deduction in calculating the assessable income derived by him from that business in that year.

Subject to subsection (6) of this section, any taxpayer engaged in any farming or agricultural business on any land in New Zealand shall, in calculating the assessable income derived by him from that business, be entitled, to the extent and in the manner provided by subsections (3), (4), and (5) of this section, to deduct any expenditure incurred in that business in any income year commencing after the thirty-first day of March, nineteen hundred and sixty-one, and not deductible otherwise than under this section, in—

The maximum amount of expenditure of the kind referred to in subsection (2) of this section that is allowable as a deduction for any income year shall not exceed in the aggregate the sum of four hundred pounds in respect of any farming or agricultural business, whether the business is carried on by one person or by two or more persons in partnership or otherwise jointly or in common, whether as legal owners or as beneficial owners, and whether as trustees or otherwise, and whether or not the expenditure is incurred in the income year or is carried forward from any earlier income year under subsection (4) of this section.

In so far as the total of any expenditure of the kind referred to in subsection (2) of this section is not allowable as a deduction (having regard to the provisions of subsections (3) and (5) of this section) in calculating the assessable income derived by the taxpayer from the business in the income year in which the expenditure is incurred, the taxpayer shall, subject to those subsections, be entitled to carry the expenditure forward and to deduct the same in calculating the assessable income derived by him from the business in the subsequent income years not exceeding four in which he continues to carry on the business.

In calculating the assessable income derived by the taxpayer from the business in any income year, deductions in respect of expenditure of the kind referred to in subsection (2) of this section shall, so far as they have not previously been allowed as a deduction and are allowable under subsection (3) of this section, be allowed in the following order:

Where any land together with the improvements thereon is sold by the taxpayer within five years from the date of his acquisition of that land, and the taxpayer has been allowed as a deduction in calculating his assessable income expenditure in respect of that land which, but for this section or the corresponding provisions of this Act that were in force before the commencement of this section, would not have been allowable as a deduction, the amount by which the selling price of the land and improvements exceeds the aggregate amount consisting of the original purchase price and any expenditure on improvements for which no deduction has been allowed under this section or the corresponding provisions of this Act as aforesaid in calculating his assessable income shall be deemed to be assessable income derived by the taxpayer in the year in which the property is sold, to the extent of the total deductions allowed under this section or the corresponding provisions of this Act as aforesaid since the acquisition of the land:

“Provided that, if the taxpayer so elects, the Commissioner may, notwithstanding anything to the contrary in section 24 of this Act, make a revised assessment or assessments in respect of any year in which a deduction has been allowed under this section or the corresponding provisions of this Act as aforesaid without allowing that deduction or without allowing such portion thereof as he thinks fit, and may recover the additional amount of tax accordingly.”

In this Part of this Act the expression ‘privately controlled company’ means a company that—

In this section—

For the purposes of subparagraphs (ii) and (iii) of paragraph (b) of subsection (1) of this section, a person and his nominees shall be deemed to be one person.

For the purposes of subparagraphs (iv) and (v) of paragraph (b) of subsection (1) of this section, a person (whether or not he holds shares in the company concerned) and his relatives and (in relation to any shares in respect of which they are such nominees) his nominees, or nominees of any of his relatives, shall be deemed to be one person.

For the purposes of subsection (1) of this section—

In any case where the Commissioner is satisfied that, because of special circumstances existing on the last day of its accounting year in the constitution or control of a company (being a company which would, but for this subsection, be a privately controlled company), it is unreasonable that the company should be treated as a privately controlled company in respect of that accounting year, the Commissioner may in his discretion, upon application in that behalf made in writing by or on behalf of the company within the prescribed period in relation to that accounting year or within such further period as the Commissioner in his discretion may allow in any case or class of cases, declare that the company shall not be a privately controlled company in respect of that accounting year for the purposes of this Part of this Act, and every such declaration shall have effect according to its tenor.

Nothing in section 3 of this Act shall apply for the purposes of this section.”