(1) Nothing in section 67, section 117, or section 129 of the Income Tax Act 1976 shall apply in respect of any land or asset disposed of by a Harbour Board to a port company pursuant to a port company plan before 1 October 1989, or such later date in any particular case as the Minister, after consultation with the Minister of Finance, may allow.
(2) For the purposes of the application of the Income Tax Act 1976 in relation to any property transferred to a port company pursuant to a port company plan before 1 October 1989, or such later date in any particular case as the Minister, after consultation with the Minister of Finance, may allow, the property shall be deemed to have been acquired by the port company at the price attributed to that property in the port company plan, and nothing in section 111 of the Income Tax Act 1976 shall apply in respect of any such property.
(2A) Subject to subsection (2D), except where subsection (2B) or subsection (2C) applies, for the purposes of section 188 of the Income Tax Act 1976 any loss incurred by a Harbour Board, in relation to a port related commercial undertaking before or after that undertaking is transferred to a port company shall be deemed to have been incurred by that port company.
(2B) Subject to subsection (2D), where, at any time on or after 1 November 1989, port related commercial undertakings in respect of any port are carried on by a port operator, for the purposes of section 188 of the Income Tax Act 1976 any loss incurred by a Harbour Board in relation to port related commercial undertakings at that port prior to 1 November 1989 shall be deemed to have been incurred by the port operator.
(2C) Subject to subsection (2D), where any port related commercial undertakings carried on by a port operator are subsequently transferred to a port company, for the purposes of section 188 of the Income Tax Act 1976 any loss incurred by the port operator in respect of those undertakings shall be deemed to have been incurred by the port company.
(2D) Subsections (2A), (2B), and (2C) shall not apply to any loss that results from the transfer of property—
(3) For the purposes of the Goods and Services Tax Act 1985, every transfer of an undertaking from a Harbour Board to a port company pursuant to a port company plan before 1 October 1989, or such later date in any particular case as the Minister, after consultation with the Minister of Finance, may allow, shall be deemed to be the transfer of a part of a taxable activity as a going concern that is capable of separate operation.
(4) For the purposes of this section,—
Section 38(2A): inserted, on 28 March 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 14(1) of the Income Tax Amendment Act 1990 (1990 No 24).
Section 38(2A): amended, on 1 August 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 62(1) of the Income Tax Amendment Act (No 2) 1990 (1990 No 63).
Section 38(2B): inserted, on 28 March 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 14(1) of the Income Tax Amendment Act 1990 (1990 No 24).
Section 38(2C): inserted, on 28 March 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 14(1) of the Income Tax Amendment Act 1990 (1990 No 24).
Section 38(2D): inserted, on 28 March 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 14(1) of the Income Tax Amendment Act 1990 (1990 No 24).
Section 38(2D)(a): substituted, on 1 August 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 62(2) of the Income Tax Amendment Act (No 2) 1990 (1990 No 63).
Section 38(2D)(b): substituted, on 1 August 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 62(2) of the Income Tax Amendment Act (No 2) 1990 (1990 No 63).
Section 38(2D)(c): substituted, on 1 August 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 62(2) of the Income Tax Amendment Act (No 2) 1990 (1990 No 63).
Section 38(4): added, on 28 March 1990 (applying with respect to the tax on income derived in the income year commencing on 1 April 1988 and in every subsequent year), by section 14(2) of the Income Tax Amendment Act 1990 (1990 No 24).
Section 38(4)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).