(1) These regulations may be cited as the Income Tax (Depreciation Determinations) Regulations 1993.

(2) These regulations shall come into force on the 28th day after the date of their notification in the Gazette, and shall apply in respect of any application for a depreciation determination made on or after that day.

In these regulations, unless the context otherwise requires,—

Other expressions used in these regulations have the same meanings as in the Income Tax Act 2007.

(1) Every application for a depreciation determination shall—

• (a) be made on a form or forms approved for the relevant application by the Commissioner, and contain such information as may be required for completion of the approved form or forms; and

• (b) be accompanied by such further information or evidence as may be required or indicated on the approved form; and

• (c) except in the case of an application for a determination of a provisional rate under section 91AAG of the Act, be accompanied by the initial application fee prescribed by regulation 9(1)(a).

(2) Without limiting the generality of subclause (1)(b), an application under section 91AAG of the Act for a special or provisional rate of depreciation shall be accompanied by the following information:

• (a) the depreciation rate that the applicant uses for financial reporting purposes for the property in respect of which the application is made:

• (b) where the taxpayer has used that property or property of that type previously, details of the useful life of such property and its residual value:

• (c) any relevant information the applicant has in relation to the property from a manufacturer, valuer, engineer, architect, or any other person as to the estimated useful life or estimated residual value of the property.

An applicant shall furnish to the Commissioner such further information as the Commissioner may from time to time reasonably request for the purpose of determining the application.

An applicant may at any time, by notice in writing to the Commissioner, withdraw or amend an application.

(1) Where the Commissioner considers it appropriate to issue a determination in response to an application for—

• (a) a special or provisional rate of depreciation under section 91AAG of the Act; or

• (b) a higher maximum pooling value under section 91AAL of the Act,—

the Commissioner shall first prepare a draft determination.

(2) The Commissioner shall send a copy of the draft determination to the applicant, together with—

• (a) a brief statement of the reasons for the terms of the draft determination; and

• (b) notification of a date by which the applicant should indicate to the Commissioner whether or not the applicant wishes the Commissioner to hold a conference in relation to the draft determination, such date to be not less than 10 working days after the day on which the copy of the draft determination is sent to the applicant.

(1) If—

• (a) the applicant notifies the Commissioner in writing by the date for response specified under regulation 6(2)(b) that the applicant wishes the Commissioner to hold a conference in relation to the draft determination; or

• (b) the Commissioner determines to hold a conference in any event,—

the Commissioner shall appoint a date, time, and place for the conference and notify the applicant accordingly.

(2) The date of the conference shall be not less than 20 working days after the date for response specified under regulation 6(2)(b), unless the applicant otherwise agrees.

(3) If the applicant notifies the Commissioner that the applicant does not wish a conference to be held, or fails to give any notification at all by the date for response specified under regulation 6(2)(b), the Commissioner may proceed to make the determination at any time after the earlier of—

• (a) the date the notice is given by the applicant; or

• (b) the date for response specified under regulation 6(2)(b).

(1) At every conference called under regulation 7 the following persons are entitled to be present and to participate both personally and through a representative:

• (a) the Commissioner:

• (b) the applicant:

• (c) any person nominated by the Commissioner or by the applicant;—

but no other person is entitled to be present.

(2) At every such conference the Commissioner shall provide for as little formality and technicality as the requirements of these regulations and a proper consideration of the application permits.

(3) The Commissioner shall cause such record of a conference to be made as is sufficient to set out the matters raised by the persons participating in the conference.

(4) The Commissioner or representative of the Commissioner attending the conference may terminate the conference when he or she is of the opinion that a reasonable opportunity has been given for the expression of the views of the persons participating in the conference.

(5) The Commissioner shall have regard to all matters raised at the conference, and may at any time after the conference make a determination in respect of the application.

(1) An applicant is liable to pay the following fees in respect of any application for a depreciation determination other than an application for determination of a provisional rate under section 91AAG of the Act:

• (a) an initial fee of $150 plus any GST to be paid at the time the application is lodged:

• (b) a processing fee at the rate of $75 plus any GST per hour for every hour (or part hour), beyond the first 2 hours, spent in departmental processing of the application (such processing time to include time spent by the Commissioner or representatives of the Commissioner in attending a conference, but not the time of consultants referred to in paragraph (c) or paragraph (d)):

• (c) a departmental consultation reimbursement fee equal to the amount of fees, less GST, paid by the Commissioner to consultants such as valuers, engineers, and architects in obtaining advice as to the estimated useful life or estimated residual value of the property to which the application relates (not being fees to which paragraph (d) applies), plus any GST:

• (d) an additional consultation reimbursement fee, equal to the amount of fees, less GST, paid by the Commissioner to the relevant consultant, plus any GST, where the applicant—

  • (i) requests, in writing to the Commissioner, that a consultant carry out further work on the application:

  • (ii) requests a conference on the application and a consultant paid by the Commissioner attends the conference on the nomination of either the applicant or the Commissioner.

(1B) An applicant for a determination of a provisional rate under section 91AAG of the Act is liable to pay for the application an additional consultation reimbursement fee equal to the amount of fees, less GST, paid by the Commissioner to the relevant consultant, plus any GST, if—

• (a) the Commissioner declines to issue a determination, or issues a determination that is unfavourable to the applicant; and

• (b) the applicant, after the Commissioner's decision,—

  • (i) requests, in writing to the Commissioner, that a consultant carry out further work on the application but the further work does not cause the Commissioner to issue a determination favourable to the applicant:

  • (ii) requests a conference on the application and a consultant paid by the Commissioner attends the conference on the nomination of either the applicant or the Commissioner but the conference does not cause the Commissioner to issue a determination favourable to the applicant.

(2) Where, following a request by an applicant for a conference or for further work to be done by a consultant, it appears that an additional consultation reimbursement fee will become payable by the applicant under subclause (1)(d) or (1B), the Commissioner shall advise the applicant of the fees likely to be incurred as a result of the request with a view to ascertaining whether or not the applicant wishes to pursue the application.

(3) Before engaging a consultant the Commissioner shall have regard to any information of the kind referred to in regulation 3(2)(c) that is provided by the applicant, and the Commissioner shall not unreasonably require advice from a consultant if the Commissioner considers that such information is sufficient to determine an appropriate rate of depreciation.

(4) The Commissioner shall ensure as far as is reasonably practicable that every effort is made to minimise the fees to which a taxpayer is liable in respect of an application for a depreciation determination.

(1) Where the Commissioner determines to proceed to the making of a final determination, the Commissioner shall inform the applicant of that fact and at the same time shall advise the applicant of the fees payable by the applicant under regulation 9(1)(b) to (d) or (1B).

(2) Where an application is withdrawn the Commissioner shall advise the applicant of the fees payable under regulation 9(1)(b) to (d) or (1B) for processing or consultation work done before the Commissioner received notice of the withdrawal.

The Commissioner may waive all or part of a fee payable under these regulations if the Commissioner considers it is fair and reasonable in the circumstances to do so, having regard to the nature of the issue that is the subject of the application, the level of skill and experience required in the consideration of the application, the fees paid by the Commissioner to consultants in the application, and any other relevant factors.