• “(2) Subpart BH (Double tax agreements) provides for the effect of a double tax agreement.”

“Foreign account information-sharing agreements

• “(5B) A foreign account information-sharing agreement is subject to Part 11B of the Tax Administration Act 1994.”

“CB 15B When land acquired

• “General rule

  “(1) For the purposes of this subpart, a person acquires an estate, interest, or option that is land (the land) on the date that begins a period in which the person has an estate or interest in, or an option to acquire, the land, alone or jointly or in common with another person.

  “First exception: acquisition of land by company to be formed

  “(2) If a person, on behalf of a company to be formed, enters an agreement under which the company will have land, the company is treated, for the purposes of this subpart in relation to the land, as existing from when the person enters the agreement.

  “Second exception: further land from exercise of option

  “(3) If a person who has an estate or interest in land has subsequently, as a consequence of the person's exercise of an option, another estate or interest (the other land interest) in the same land, the person is treated for the purposes of this subpart as having the other land interest from the time of the exercise of the option.

  “Relationship with subparts FB and FC

  “(4) Subsections (1) to (3) are overridden, for a transaction, by a provision in subpart FB or FC (which relate to transfers of property) providing for the timing of the transaction.

  “Defined in this Act: company, estate, interest, land”.

• “(ab) the share is not in a listed PIE; and”.

“Exception for amount from grant of easement

• “(2C) An amount is not income of the owner of a fee simple estate in land if the amount is derived as consideration for the grant, for the duration of the estate, of an easement over the land and is not a periodic payment.”

“CC 1B Consideration relating to grant, renewal, extension, or transfer of leasehold estate or licence

• “When this section applies

  “(1) This section applies when a person (the payee) derives an amount—

  • “(a) in relation to a right (the land right) that is

    • “(i) a leasehold estate not including a perpetual right of renewal:

    • “(ii) a licence to use land; and

  • “(b) as consideration for—

    • “(i) the agreement by the payee to the grant, renewal, extension, or transfer of the land right:

    • “(ii) the transfer of the land right from the holder of the land right to another person.

  “Income

  “(2) The amount is income of the payee.

  “Exception for payment as consideration for transfer of land right

  “(3) The amount is not income of the payee if—

  • “(a) the payee is the holder of the land right; and

  • “(b) the amount is consideration for the transfer of the land right to the person paying the amount; and

  • “(c) the amount is not sourced from funds provided, by the owner of the estate in land from which the land right is granted, for purposes that include obtaining the surrender or termination of the land right; and

  • “(d) each of the payee and the person paying the amount is not associated with the owner of the estate in land from which the land right is granted.

  “Exception for tenant or licensee of residential premises

  “(4) The amount is not income of the payee if the payee—

  • “(a) is a natural person and derives the amount as a tenant or licensee of residential premises whose expenditure on the residential premises does not meet the requirements of the general permission; and

  • “(b) is not associated with the owner of the estate in land from which the land right is granted.

  “Exception for payment of capital contribution

  “(5) The amount is not income of the payee if the amount is derived as a capital contribution.

  “Defined in this Act: amount, associated, capital contribution, estate, general permission, income, land, leasehold estate, own, pay”.

• “(1) This section applies when—

  • “(a) a person (the payee) is the owner of––

    • “(i) an estate in land from which is granted an estate or interest a right (the land right) that is a leasehold estate not including a perpetual right of renewal, or is a licence to use land:

    • “(ii) the land right; and

  • “(b) derives an amount as consideration for the agreement by the payee to the surrender or termination of the land right.”

• “(2) Section 113B of the Tax Administration Act 1994 requires the Commissioner, if given notice of the recovery of the dividend from a shareholder, to amend an assessment of the company or the shareholder in relation to income tax or under the imputation rules, the NRWT rules, the RWT rules, the FDP rules, or under subpart LP (Tax credits for supplementary dividends), as applicable.”

• “(bb) the value of accommodation referred to in sections CE 1B to CE 1E:”.

• “(2) For the purposes of this section, and sections CE 1B to CE 1E, CW 16B to CW 16F, CW 17CB, CZ 23, CZ 29, and CZ 30 (which relate to accommodation provided in connection with employment), accommodation—

  • “(a) includes—

    • “(i) board or lodging:

    • “(ii) the use of a house or living premises, or the use of part of a house or living premises, whether permanent or temporary:

  • “(b) does not include—

    • “(i) a berth, room, or other lodging provided on a mobile workplace, for example, a ship, a truck, an oil rig, or other similar workplace:

    • “(ii) a station in Antarctica:

    • “(iii) a room or lodging that is provided for a shift worker who is required in the performance of their employment duties periodically to sleep at their workplace when the accommodation is provided only for the duration of the performance of those duties, for example, fire-fighters, ambulance staff, care-givers, and other similar employees:

    • “(iv) the use of a room or other dwelling provided at a remote location outside New Zealand when a person's employment duties require them to work at the location for a period and also require them to be absent from the location for a period, for example, miners in Australia who regularly fly to and from a mining camp and other similar employees.”

“Meaning of employer

• “(3) Employer,—

  • “(a) in this section, in sections CE 1B, and CW 16B to CW 16F, CZ 29, and CZ 30 (which relate to accommodation provided in connection with employment) and in the definition of employee, paragraph (e), includes a person, whether resident or non-resident, who, in connection with the employment or service of an employee of the employer,—

    • “(i) provides accommodation for the employee at a distant workplace; or

    • “(ii) pays an amount for the employee's accommodation at a distant workplace:

  • “(b) in sections CW 16B to CW 16F, CZ 29, and CZ 30, includes a company that is part of the same group of companies as the employer.

“Amendment of exclusions by Order in Council

• “(4) For the purposes of subsection (2), the Governor-General may by Order in Council make regulations to add to the types of accommodation that are excluded by paragraph (b) of the definition of accommodation from the rules relating to accommodation provided in connection with employment.

“Application of Order in Council

• “(5) An Order in Council under subsection (4) may—

  • “(a) come into force on a date that is not earlier than 1 April 2015:

  • “(b) apply for income years that do not precede the 2015–16 income year.”

“CE 1B General rule: accommodation provided by employers

• “Value of accommodation

  “(1) The value of accommodation provided to a person is income of the person when it is provided in relation to their employment or service. The value is an amount equal to the market rental value of the accommodation.

  “Value of accommodation allowances

  “(2) The value of an accommodation allowance provided to a person is income of the person when it is provided in relation to their employment or service. The value is equal to the amount of the allowance paid to the person.

  “Payments and reimbursements

  “(3) An amount paid for or towards the provision of accommodation for a person, whether as expenditure on account of an employee or as a reimbursement, is income of the person when it is paid in relation to their employment or service.

  “Adjustments to values

  “(4) The value under subsection (1) may be adjusted as follows:

  • “(a) when more than 1 person referred to in that subsection shares in the accommodation provided, the amount may be—

    • “(i) apportioned equally among the number of persons referred to in that subsection who are sharing in the accommodation; or

    • “(ii) if the persons referred to in that subsection who are sharing in the accommodation agree with the person providing the accommodation, apportioned on another reasonable basis:

  • “(b) when the person to whom the accommodation is provided contributes towards their occupation of the accommodation, the amount may be reduced by the amount contributed:

  • “(c) when the person to whom the accommodation is provided uses part of the accommodation wholly or mainly for work purposes related to their employment or service, the amount may be apportioned between business use and private use.

  “Adjustments: allowances and amounts paid

  “(5) Subsection (4)(b) and (c) may apply to adjust the value of an accommodation allowance or an amount paid for or towards the provision of accommodation under subsections (2) and (3).

  “Exceptions

  “(6) Sections CE 1C and CE 1E override this section.

  “Defined in this Act: accommodation, amount, business, employer, employment, expenditure on account of an employee, income, pay

“CE 1C Exception: overseas accommodation

• “Relevant local rental

  “(1) Despite section CE 1B(1), if accommodation is provided at or near a work location that is overseas, the value of the accommodation is an amount equal to the relevant market rental value of accommodation in New Zealand. The relevant market rental value is determined taking into account—

  • “(a) the location where the person would be likely to work for their employer in New Zealand; and

  • “(b) the equivalent accommodation in New Zealand that the person would be likely to occupy; and

  • “(c) the average or median market rental value in the vicinity of the location referred to in paragraph (a).

  “When overseas rental is less than New Zealand equivalent

  “(2) For the purposes of subsection (1), if the value of the accommodation in the overseas location is less than the New Zealand equivalent market rental value, the value that must be used is the value in the overseas location.

  “When location in New Zealand is uncertain

  “(3) For the purposes of subsection (1)(a), if the location where the person would be likely to work for their employer in New Zealand is uncertain, the relevant market rental value is taken as either the average market rental value or the median market rental value, as applicable, for the whole of New Zealand.

  “Defined in this Act: accommodation, amount, New Zealand

“CE 1D Exception: accommodation provided by Defence Force

• “When this section applies

  “(1) This section applies for the purposes of section CE 1B(1) when accommodation is provided to a person who is a member of the Defence Force by the Navy, Army, or Air Force, as those terms are defined in the Defence Act 1990.

  “Market rental value

  “(2) The market rental value of the accommodation is an amount equal to the lesser of—

  • “(a) the market rental value for the accommodation; and

  • “(b) the market rent payable for the national New Zealand Defence Force benchmark property for the type of accommodation provided to the person, less the discount applying to the type of accommodation.

  “National benchmark properties and discounts

  “(3) For the purposes of this section, the Commissioner and the Chief of the Defence Force, in consultation with a registered valuer, must determine—

  • “(a) the number and location of national benchmark properties:

  • “(b) the types of accommodation represented by the benchmark properties:

  • “(c) a market rental value for each type of accommodation in the benchmark properties:

  • “(d) a discount applying to each type of accommodation in the benchmark properties.

  “Three-yearly review

  “(4) A determination under subsection (3)(c) and (d) must be reviewed every 3 years. Either the Commissioner or the Chief of the Defence Force may instigate the review.

  “Defined in this Act: accommodation, amount, Commissioner, pay

“CE 1E Exception: accommodation provided to ministers of religion

• “Income

  “(1) Despite section CE 1B(1) and to the extent described in subsection (2), the value of accommodation that is provided to a person who is a minister of religion is income of the person when the property in which the accommodation is provided is supplied by the religious society or organisation of which they are a minister.

  “Limited amount

  “(2) The amount of income for an income year is calculated using the formula—

  remuneration × (1 – adjustment) + excess rental.

  “Definition of items in formula

  “(3) In the formula,—

  • “(a) remuneration is the amount that equals 10% of the remuneration that the person receives for the income year for the performance of their duties as a minister from the religious society or organisation of which they are a minister:

  • “(b) adjustment is the adjustment referred to in subsection (4), and is the part of the amount that is the value of the accommodation for the income year apportioned to work-related use, expressed as a decimal fraction of the total value of the accommodation:

  • “(c) excess rental is the amount that is not less than zero that is the difference between—

    • “(i) the market rental value for the income year of the accommodation provided; and

    • “(ii) the market rental value for the income year of accommodation that is reasonably commensurate with the duties of the person as a minister and for the location in which they perform their duties.

  “Adjustments

  “(4) An adjustment referred to in subsection (3)(b) is as follows:

  • “(a) if the person to whom the accommodation is provided uses part of the accommodation wholly or mainly for work purposes related to their duties as a minister, the amount is apportioned between that business use and private use:

  • “(b) if more than 1 person referred to in subsection (1) shares in the accommodation provided, the amount is apportioned equally between them:.

  • “(c) if accommodation is provided for part of an income year, the reference to income year is read as a reference to the relevant part of the income year.

  “Part-year

  “(4B) For the purposes of this section, if accommodation is provided for part of an income year, the reference to income year is read as a reference to the relevant part of the income year.

  “Meaning of minister of religion

  “(5) For the purposes of this section, minister of religion—

  • “(a) means a person—

    • “(i) who is ordained, commissioned, appointed, or otherwise holds an office or position, regardless of their title or designation, as a minister of a religious denomination or community that meets the charitable purpose of the advancement of religion; and

    • “(ii) whose duties are related mainly to the practice, study, teaching, or advancement of religious beliefs; and

    • “(iii) whose accommodation is used as an integral part of performing their duties:

  • “(b) does not include a member of a religious society or order referred to in section CW 25 (Value of board for religious society members).

  “Defined in this Act: accommodation, amount, business, income year, minister of religion”.

• “(b) an amount paid under—

  • “(i) sections CW 16B to CW 16F (which relate to accommodation expenditure):

  • “(ii) section CW 17B (Relocation payments):

  • “(iii) section CW 17C (Payments for overtime meals and certain other allowances):

  • “(iv) section CW 17CB (Payments for certain work-related meals):

  • “(v) section CW 17CC (Payments for distinctive work clothing):

  • “(vi) section CW 18 (Allowance for additional transport costs):”.

• “(c) expenditure, other than an amount to which paragraph (a) applies, that an employee pays in connection with their employment or service to the extent to which—

  • “(i) the amount of the expenditure is incurred by or on behalf of their employer; and

  • “(ii) the employee pays the amount on their employer's behalf:”.

“Relationship with sections CG 2B to CG 2E

• “(5) Sections CG 2B to CG 2E override this section.”

“CG 2B Remitted amounts on discharge from bankruptcy

• “When this section applies

  “(1) This section applies when a person to whom section CG 2(1) applies is discharged from bankruptcy.

  “Income

  “(2) An amount to which the remission or cancellation applies is income of the person, but only to the extent of the lesser of––

  • “(a) the total of the amounts to which the remission or cancellation applies; and

  • “(b) either––

    • “(i) the amount of the person's loss balance at the end of the tax year corresponding to the income year immediately before the income year in which the discharge occurs (the preceding tax year loss balance), if the Commissioner has not claimed a provable debt referred to in section 231(1) of the Insolvency Act 2006 in relation to the person; or

    • “(ii) the amount calculated using the following formula, if the Commissioner has claimed a provable debt referred to in section 231(1) of the Insolvency Act 2006 in relation to the person:

      loss balance – debt adjustment.

  “Definition of items in formula

  “(3) In the formula,—

  • “(a) loss balance is the amount of the person's preceding tax year loss balance:

  • “(b) debt adjustment is the amount of the adjustment made by the Commissioner to the person's loss balance under section 177C of the Tax Administration Act 1994.

  “Timing of income

  “(4) The income is treated as derived on the first day of the income year in which the person is discharged from bankruptcy.

  “Relationship with section CG 2

  “(5) This section overrides section CG 2.

  “Defined in this Act: amount, Commissioner, deduction, income, income year, loss balance, tax loss component, tax year”.

“CG 2C Remitted and other amounts: companies in liquidation

• “When this section applies

  “(1) This section applies when—

  • “(a) a company that is part of a group of companies (company A) is allowed a deduction for an amount that it is liable to pay; and

  • “(b) company A's liability for the amount is later remitted or cancelled, wholly or partly; and

  • “(c) company A includes some or all of the amount of the deduction in the calculation of a net loss for a tax year; and

  • “(d) the net loss is a tax loss component included in a tax loss of company A for a tax year under section IA 2(2) or (3) (Tax losses); and

  • “(e) after the inclusion of the amount of the deduction in its net loss, company A makes some or all of the tax loss available to another company in the group (company B) to subtract from its net income for a tax year; and

  • “(f) after making the tax loss available to company B, and at a time when company A and company B are in the same group of companies, company A is liquidated, struck off, or otherwise removed from the register of companies.

  “Income of profit company

  “(2) An amount equal to the amount remitted or cancelled is income of company B.

  “Timing of income

  “(3) Company B is treated as deriving the income on the date on which company A is liquidated, struck off, or otherwise removed from the register of companies.

  “No application to financial arrangements

  “(4) This section does not apply to a liability that is a financial arrangement, whether or not the liability has been remitted or cancelled.

  “Relationship with other provisions

  “(5) This section—

  • “(a) overrides section CG 2:

  • “(b) is modified by section FM 5(4) (Liability when company leaves consolidated group):

  • “(c) does not apply to a company to which section FO 4 (Rights and obligations of amalgamating companies) applies, except to the extent to which paragraph (d) applies in relation to the company:

  • “(d) is modified by section FO 5 (Amalgamations and remitted liabilities) in relation to the treatment of liabilities assumed by an amalgamated company in an amalgamation:

  • “(e) is overridden by sections IC 11 and IC 12 (which relate to the tax losses of certain group companies) but only to the extent to which sections IC 11 and IC 12 apply to reduce a tax loss component arising in an earlier tax year that would otherwise be subject to this section.

  “Defined in this Act: amount, company, deduction, financial arrangement, group of companies, income, liquidation, net income, net loss, pay, tax loss, tax loss component, tax year

“CG 2D Remitted and other amounts: companies leaving groups

• “When this section applies

  “(1) This section applies when—

  • “(a) a company that is part of a group of companies (company C) is allowed a deduction for an amount that it is liable to pay; and

  • “(b) company C includes some or all of the amount of the deduction in the calculation of a net loss for a tax year; and

  • “(c) the net loss is a tax loss component included in a tax loss of company C for the tax year under section IA 2(2) or (3) (Tax losses); and

  • “(d) after the inclusion of the amount of the deduction in the calculation of its net loss, company C makes some or all of the tax loss available to another company in the group (company D) to subtract from its net income for a tax year; and

  • “(e) after the tax loss is made available to company D,—

    • “(i) either company C or company  D, or both, leave the group; and

    • “(ii) at the date of the departure, company C is in liquidation, receivership, or does not satisfy the solvency test set out in section 4 of the Companies Act 1993; and

  • “(f) the liability referred to in paragraph (a) remains unpaid at the date on which either company C or company D, or both, leaves the group.

  “Income of profit company

  “(2) An amount equal to the amount of the unpaid liability referred to in subsection (1)(f) is income of company D.

  “Timing of income

  “(3) Company D is treated as deriving the income immediately before the date on which either company C or company D, or both, leaves the group.

  “When subsection (5) applies

  “(4) Subsection (5) applies for the purposes of subsection (1)(e)(ii) when—

  • “(a) a transaction results in an amount being received by a creditor of company C within a period of 2 years before either company C or company D, or both, leaves the group; and

  • “(b) the payment of the amount reduces, in whole or in part, the liability of company C so that company C satisfies the solvency test set out in section 4 of the Companies Act 1993.

  “Commissioner's discretion

  “(5) The Commissioner may treat company C as not satisfying the solvency test set out in section 4 of the Companies Act 1993 if the Commissioner considers—

  • “(a) the amount is paid when company C is insolvent; and

  • “(b) the payment has allowed the creditor to receive more towards the satisfaction of a debt owed by company C than the creditor would receive or would be likely to receive if company C were placed in liquidation on the day on which company C or company D, or both, leaves the group.

  “No application to financial arrangements

  “(6) This section does not apply to a liability that is a financial arrangement, whether or not the liability has been remitted or cancelled.

  “Relationship with other provisions

  “(7) This section—

  • “(a) overrides section CG 2:

  • “(b) is modified by section FM 5(4) (Liability when company leaves consolidated group):

  • “(c) is overridden by sections IC 11 and IC 12 (which relate to the tax losses of certain group companies) but only to the extent to which sections IC 11 and IC 12 apply to reduce a tax loss component arising in an earlier tax year that would otherwise be subject to this section.

  “Defined in this Act: amount, arrangement, Commissioner, company, deduction, financial arrangement, group of companies, income, liquidation, net income, net loss, pay, tax loss, tax loss component, tax year

“CG 2E Remitted and other amounts: income apportionment

• “When this section applies

  “(1) This section applies when—

  • “(a) an amount of income is treated as having been derived by a company under section CG 2C or CG 2D; and

  • “(b) in relation to the income, some or all of a tax loss of a company that is part of a group of companies has been made available to more than 1 company in the group.

  “Apportionment

  “(2) The company that is treated as deriving the income may choose to apportion the income among other companies in the group.

  “Limited amount

  “(3) The amount of the income referred to in subsection (2) must be no more than the total tax loss referred to in section CG 2C(1)(e) or CG 2D(1)(d), as applicable, for all previous tax years.

  “Default apportionment

  “(4) If the company that is treated as deriving the income does not make an apportionment under subsection (2), the income must be divided equally among the companies in the group.

  “Companies in group

  “(5) For the purposes of subsections (2) and (4),—

  • “(a) the company that made the tax loss available is treated as excluded from the group:

  • “(b) the company must be part of the group of companies at the date on which section CG 2C(3) or CG 2D(3) applies.

  “Application to consolidated groups

  “(6) This section does not apply to a company that is part of a consolidated group of companies, for which, see section FM 5(3) to (5) (Liability when company leaves consolidated group).

  “Defined in this Act: amount, company, consolidated group, group of companies, income, tax loss, tax year”.

“CG 7B Disposals or applications after earlier deductions

• “When this section applies

  “(1) This section applies when a person—

  • “(a) has a deduction under section DB 19, DB 37, or DB 40BA (which relate to expenditure on abortive or failed applications) for expenditure; and

  • “(b) acquires property (the application property) as a result of the expenditure; and

  • “(c) disposes of the application property for consideration or uses the application property in the lodging of a patent application with a complete specification or in obtaining the grant of a resource consent or plant variety rights.

  “Income: affecting cost in section EE 25, base value in section EE 57

  “(2) The person has income of the amount described in—

  • “(a) subsection (3), if the application property is disposed of for consideration, in the income year of the disposal; or

  • “(b) subsection (4), if the application property is used in the lodging of a patent application with a complete specification or in obtaining the grant of a resource consent or plant variety rights, in the income year of the lodgment or grant.

  “Lesser of total deductions and consideration from disposal

  “(3) The amount is—

  • “(a) the amount of the consideration derived for the disposal that is not income under another provision of this Act, if that amount is less than the total amount of deductions referred to in subsection (1)(a); or

  • “(b) the total amount of deductions referred to in subsection (1)(a), if paragraph (a) does not apply.

  “Deductions in acquiring property

  “(4) The amount is the total amount of deductions referred to in subsection (1)(a) for expenditure incurred in acquiring the application property.

  “Defined in this Act: deduction, dispose, income, plant variety rights”.

“Relationship with section CZ 32

• “(4) Section CZ 32 (Treatment of certain petroleum storage facilities) overrides subsection (2).”

• “(2) Petroleum mining asset does not include—

  • “(a) land:

  • “(b) an underground gas storage facility as that term is defined in section 2 of the Crown Minerals Act 1991.”

“CV 17 Non-exempt charities: taxation of tax-exempt accumulation

• An amount of income of a person under section HR 12 (Non-exempt charities: taxation of tax-exempt accumulation) is income of the person for the income year that contains the day 1 year after the day of final decision.

  “Defined in this Act: day of final decision, person, income, income year, year”.

• “(2) For the income year to which the LE 1(4B) income relates, the person derives an amount of income equal to the amount of the tax credit for the imputation credit under section LE 8B (Dividend from certain FIF interests) except if the LE 1(4B) income relates to FIF income or loss calculated under––

  • “(a) the comparative value method; or

  • “(b) the deemed rate of return method.”

“CW 16B Accommodation expenditure: out-of-town secondments and projects

• “When this section applies

  “(1) This section applies when—

  • “(a) the employment duties of an employee require them to work at a distant workplace on an out-of town secondment or a project of limited duration; and

  • “(b) the period of the employee's employment or service at the distant workplace is a period of continuous work; and

  • “(c) the employer—

    • “(i) provides accommodation for the employee for a period that falls within a time limit described in section CW 16C:

    • “(ii) incurs expenditure on the employee's accommodation at the distant workplace for a period that falls within a time limit described in section CW 16C:

    • “(iii) incurs expenditure on the employee's accommodation for necessary travel to and from the distant workplace in connection with the performance of their duties.

  “Exclusions

  “(2) This section does not apply—

  • “(a) to an amount that is the value provided or expenditure incurred by the employer when, under the terms of the their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount:

  • “(b) in relation to an out-of-town secondment, to a new employee of the employer.

  “Exempt income

  “(3) The amount that is the value provided or expenditure incurred by the employer is exempt income of the employee.

  “Estimated expenditure

  “(4) For the purposes of subsection (1)(c)(ii),—

  • “(a) an employer may make, for a relevant period, a reasonable estimate of the amount of expenditure likely to be incurred on an employee's accommodation; and

  • “(b) the amount estimated is treated as if it were the amount incurred during the period to which the estimate relates.

  “Definitions for this section

  “(5) In this section and sections CW 16C to CW 16F, CW 17CB, CZ 29, and CZ 30 (which relate to accommodation expenditure), as applicable,—

  “distant workplace, for an employee, means a workplace that—

  • “(a) is another workplace of the employee; and

  • “(b) is not within reasonable daily travelling distance of their residence

  “out-of-town secondment means the placement of an employee at a distant workplace—

  • “(a) because the employment duties of the employee require them to work at the distant workplace for the performance of those duties; and

  • “(b) for a period that, in their employer's expectation at the start of the period of secondment, will last for no more than 2 years

  “period of continuous work—

  • “(a) means a period when an employee has ongoing duties of employment that must be performed to a significant extent at a distant workplace, requiring the employee to stay at the distant location for 1 or more nights; and

  • “(b) includes the employee's time away on leave or other breaks for personal reasons, weekend breaks, required rest periods, and other similar periods

  “project of limited duration means a particular work project—

  • “(a) whose principal purpose is to create, build, develop, restore, replace, or demolish a capital asset; and

  • “(b) which is carried out under a contract between an employer and 1 or more persons who are not associated with the employer; and

  • “(c) in relation to which the engagement of an employee of the employer at the distant workplace—

    • “(i) has, at the outset, clear start and end dates; and

    • “(ii) involves work that, apart from incidental activities, is undertaken solely for the purposes of the project; and

    • “(iii) in their employer's expectation at the start of the project, will last for a period of no more than 3 years

  “workplace means a particular place or base—

  • “(a) at which an employee performs their employment duties; or

  • “(b) from which an employee's duties are allocated.

  “Defined in this Act: accommodation, amount, associated person, company, distant workplace, employee, employer, employment, employment income, exempt income, group of companies, out-of-town secondment, pay, period of continuous work, project of limited duration, workplace

“CW 16C Time periods for certain accommodation expenditure

• “Time limits: out-of-town secondments

  “(1) Section CW 16B applies for an employee on an out-of-town secondment to the value provided or expenditure incurred for a period that starts on the date on which the employee begins to work at a distant workplace, and ends at the earliest of the following dates:

  • “(a) the date that is 2 years from the date on which they began work at the distant workplace:

  • “(b) the date on which the out-of-town secondment ends:

  • “(c) the date on which the employee receives a relocation payment under section CW 17B in relation to the costs associated with settling the purchase of a new home:

  • “(d) the date on which the employer's expectation regarding the length of the period changes, and the total period is expected to be more than 2 years.

  “Time limits: projects of limited duration

  “(2) Section CW 16B applies for an employee on a project of limited duration to the value provided or expenditure incurred for a period that starts on the date on which the employee starts work at a distant workplace, and ends at the earliest of the following dates:

  • “(a) the date that is 3 years from the date on which the employee began work on the project at the distant workplace:

  • “(b) the date on which the employee's participation in the project at the distant workplace ends:

  • “(c) the date on which the employee receives a relocation payment under section CW 17B in relation to the costs associated with settling the purchase of a new home:

  • “(d) the date on which the employer's expectation regarding the employee's involvement in the project changes, and the total period of their involvement in the project is expected to be more than 3 years.

  “When subsection (4) applies: time limits when expectations change

  “(3) Subsection (4) applies for a placement of an employee at a distant workplace when—

  • “(a) the employment duties of the employee require them to work for a period of time at the distant workplace for the performance of those duties; and

  • “(b) the terms of the placement of the employee meet the requirements of an out-of-town secondment or project of limited duration, as applicable, other than the requirement related to the limitation on the length of the period for which the employee is to remain at the distant workplace; and

  • “(c) the expectation of their employer at the start of the period is that the duration of the secondment or project will exceed the applicable time limit; and

  • “(d) during the period, the employer revises their expectation of the period for the secondment or project, reducing its expected duration, and as a consequence, the requirements of an out-of-town secondment or project of limited duration, as applicable, are fully met.

  “Period of exemption

  “(4) Section CW 16B applies to the amount that is the value provided or expenditure incurred by the employer for the remainder of the period for which the employee is required to remain at the distant workplace under the out-of-town secondment or project of limited duration. For these purposes, the period starts on the date on which the employer revises their expectation, and ends at the earliest of the dates referred to in subsection (1)(a) to (d) or (2)(a) to (d), as applicable.

  “Time limits in exceptional circumstances

  “(5) A time limit does not apply if exceptional circumstances arise beyond the control of the employer and employee that require the employee to remain at the distant workplace after the period expires. Examples are a natural disaster or medical emergency. However, an extension of time must be limited to the period for which the employee is unable, because of the exceptional circumstances, to leave the distant workplace.

  “Avoidance provision

  “(6) For the purposes of determining whether a time limit under this section applies, a break in a period of continuous work at a distant workplace is ignored if a reason, that is more than incidental, for the cessation of the employment or service is to allow a further period of exemption under section CW 16B or CZ 29 (Accommodation expenditure: Canterbury earthquake relief).

  “Defined in this Act: accommodation, amount, distant workplace, employee, employer, employment, out-of-town secondment, pay, period of continuous work, project of limited duration, workplace

“CW 16D Accommodation expenditure: conferences and overnight stays

• “When this section applies

  “(1) This section applies when—

  • “(a) the employment duties of an employee require them to attend a work-related meeting, conference, or training course that entails an overnight stay; and

  • “(b) the period for which the employee's attendance is required is a period of continuous work; and

  • “(c) their employer—

    • “(i) provides accommodation for the employee for the period of their attendance:

    • “(ii) incurs expenditure on the employee's accommodation for the period of their attendance:

    • “(iii) incurs expenditure on the employee's accommodation for necessary travel in connection with the performance of their duties for the period of their attendance.

  “Exclusions

  “(2) This section does not apply to an amount that is the value provided or expenditure incurred by the employer when, under the terms of the their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount.

  “Exempt income

  “(3) The amount that is the value provided or expenditure incurred by the employer is exempt income of the employee.

  “Extended meaning of period of continuous work

  “(4) For the purposes of this section, a period of continuous work may include a period in which an employee's duties of employment require them to stay for 1 or more nights at a location that is not distant from their regular workplace.

  “Defined in this Act: accommodation, amount, employee, employer, employment, employment income, exempt income, period of continuous work

“CW 16E Accommodation expenditure: new employees

• Despite section CW 16B(2)(b), section CW 16B applies to a new employee in the following circumstances:

  • “(a) when the employer intends, at the time of employing the new employee, that the new employee would work permanently at a workplace of the employer that is not a distant workplace, but instead requires the employee to work temporarily at another of their workplaces that is a distant workplace:

  • “(b) the new employee is on an out-of-town secondment to work—

    • “(i) for a person with whom the employer has a continuing commercial affiliation or working relationship, and for the purposes of section CW 16B, the person is treated as the employer; and

    • “(ii) for a period that is expected to be no more than 2 years; and

    • “(iii) at a distant workplace that is the person's workplace.

  “Defined in this Act: distant workplace, employee, employer, out-of-town secondment, workplace

“CW 16F Accommodation expenditure: multiple workplaces

• “When this section applies

  “(1) This section applies when—

  • “(a) the employment duties of an employee require them to work on an ongoing basis at more than 1 workplace; and

  • “(b) 1 or more of those workplaces is a distant workplace; and

  • “(c) in connection with the employee's employment or service, their employer provides accommodation or pays an amount for the employee's accommodation at the distant workplace.

  “Exclusions

  “(2) This section does not apply—

  • “(a) to an amount that is the value provided or the payment by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount:

  • “(b) when the employee has 2 workplaces and 1 of those workplaces is a home office.

  “Exempt income

  “(3) The amount that is the value provided or the payment by the employer is exempt income of the employee.

  “Defined in this Act: accommodation, amount, distant workplace, employee, employer, employment, employment income, exempt income, pay, workplace”.

“Requirements for expenditure connected to employment or service

• “(2B) For the purposes of subsections (1) and (2), expenditure is treated as incurred, or an amount paid, in connection with an employee's employment or service only if—

  • “(a) the expenditure is incurred or the amount is paid because the employee is performing an obligation required by their employment or service; and

  • “(b) the employee derives employment income through the performance of the obligation; and

  • “(c) the expenditure is necessary in the performance of the obligation.”

“When subsection (2D) applies

• “(2C) Subsection (2D) applies for the purposes of subsections (2) and (3) to an amount that an employer pays to or on behalf of an employee in connection with their employment or service when—

  • “(a) the payment—

    • “(i) is made to, or on behalf of, a wide group or class of employees; and

    • “(ii) is provided mainly to reimburse an expense incurred by an employee in deriving their employment income; and

  • “(b) the amount paid is not an amount incurred by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the amount; and

  • “(c) the Commissioner considers that the average private or capital benefit that the employee as a member of the group or class is likely to receive from the payment is hard to measure.

“Determinations

• “(2D) The Commissioner may make a determination under section 91AAT of the Tax Administration Act 1994 as to whether, or the extent to which, tax must be paid on some or all of the amount.”

“CW 17CB Payments for certain work-related meals

• “Exempt income

  “(1) When the employment duties of an employee require them to work away from their employer's workplace, expenditure that the employer incurs for or on behalf of the employee for a meal for the employee is exempt income of the employee. For these purposes, expenditure includes a reimbursement payment or a meal allowance.

  “Inclusions: work-related events

  “(2) For the purposes of subsection (1), a meal includes—

  • “(a) food and drink that the employee consumes as part of a working meal arranged as part of or as an alternative to a formal meeting for business discussions:

  • “(b) food and drink that the employee consumes at a conference or training course:

  • “(c) light refreshments in the form of snack foods such as biscuits and fruit, or liquid refreshments such as tea, coffee, water, or similar refreshments, provided for the employee, but only if—

    • “(i) their employment duties require them to be away from their employment base for most of the day; and

    • “(ii) the employer would normally provide the refreshments to the employee on the day; and

    • “(iii) it is not practicable for the employer to provide the refreshments on the day.

  “Inclusions: meals when travelling on business

  “(3) For the purposes of subsection (1), a meal also includes food and drink that the employee consumes when their employment duties require them to travel in the performance of those duties.

  “Exclusion: salary sacrifice

  “(4) Subsection (1) does not apply if expenditure is incurred by the employer when, under the terms of their employment, the employee would be entitled to a greater amount of employment income, should the employee choose, or have chosen, not to receive the benefit of the expenditure.

  “Time limit

  “(5) The maximum period applying to expenditure incurred under subsection (1) other than expenditure on a meal described in subsection (2), is 3 months—

  • “(a) commencing—

    • “(i) on the date on which the employee starts to work away from their employer's workplace; or

    • “(ii) for an employee who does not have a fixed workplace, on the date on which they arrive at their accommodation base:

  • “(b) ending on the earlier of—

    • “(i) the date on which the 3 month period expires; or

    • “(ii) the date on which the employee returns to their employer's workplace to undertake their employment duties for their employer, or the date on which the employee moves to a new accommodation base, as applicable.

  “Measuring period

  “(6) In the measurement of the maximum period in subsection (5), the period includes the employee's time away on leave or other breaks for personal reasons, weekend breaks, required rest periods, and other similar periods.

  “Time limits in exceptional circumstances

  “(7) The time limit referred to in subsection (5) does not apply if exceptional circumstances arise beyond the control of the employer and employee that require the employee to continue to work away from their employer's workplace after the period expires. However, an extension of time must be limited to the period for which the employee is unable, because of the exceptional circumstances to return to their employer's workplace.

  “Relationship with FBT rules

  “(8) To the extent to which the expenditure of an employer described in subsection (1) gives rise to a fringe benefit, the fringe benefit tax rules override this section.

  “Defined in this Act: accommodation, amount, business, employee, employer, employment, employment income, exempt income, fringe benefit, fringe benefit tax rules, pay, workplace”.

“CW 17CC Payments for distinctive work clothing

• “Exempt income

  “(1) An amount that an employer pays to or on behalf of an employee for distinctive work clothing for the employee is exempt income of the employee.

  “Distinctive work clothing

  “(2) For the purposes of this section, distinctive work clothing has the meaning set out in section CX 30 (Distinctive work clothing).

  “Certain plain clothes included

  “(3) Despite subsection (2), for the purposes of subsection (4), the wearing of distinctive work clothing by an employee includes the wearing of plain clothes that would normally be worn for private purposes if—

  • “(a) their employer provides a uniform to employees; and

  • “(b) despite the provision of a uniform, the employer requires the employee to wear plain clothes in the performance of their employment duties; and

  • “(c) as at 1 July 2013, the employer's general terms and conditions of employment or service provided for allowances for plain clothes to be paid to employees; and

  • “(d) historically, the plain clothes allowance was part of a larger amount paid at the time by the employer to employees in relation to the provision of plain clothes, the balance being a taxable amount that was at a later period classified as remuneration for employees then receiving the plain clothes allowance under the employer's general terms and conditions; and

  • “(e) the terms and conditions referred to in paragraph (c) continue to provide for the payment of the plain clothes allowance.

  “Exempt amount

  “(4) The amount that the employer pays to or on behalf of the employee as an allowance for the plain clothes is exempt income of the employee.

  “Defined in this Act: amount, distinctive work clothing, employee, employer, employment, exempt income, pay”.

• “(aa) an amount of income derived by a person who is removed from the register of charitable entities (the register) under the Charities Act 2005, if it is derived in the period starting with the day they are registered on the register and ending with the earlier of the following days:

  • “(i) the day on which the person does not comply with the person's rules contained in the register:

  • “(ii) the day of final decision:”.

• “(d) a person who is removed from the register, in the period starting with the day they are registered on the register and ending with the earlier of the following days:

  • “(i) the day on which the person does not comply with the person's rules contained in the register:

  • “(ii) the day of final decision.”

“CW 42B Community housing trusts and companies

• “Exempt income

  “(1) An amount of income derived by a community housing entity is exempt income if the only beneficiaries or clients of the entity are––

  • “(a) community housing entities that meet the requirements to derive exempt income under this section:

  • “(b) at the time of first becoming beneficiaries or clients, persons, or classes of persons, described in regulations made under section 225D of the Tax Administration Act 1994:

  • “(c) tax charities:

  • “(d) persons to whom distributions would be in accordance with charitable purposes.

  “(1) An amount of income derived by a community housing entity is exempt income.

  “Definition

  “(2) In this section and section LD 3 (Meaning of charitable or other public benefit gift), community housing entity means a trust and its trustees, or a company company (as applicable, the entity), whose activities are predominantly the provision of housing (the activities), and––

  • “(a) the activities are not carried on for the private pecuniary profit of any individual; and

  • “(b) all profit is retained by the entity, or distributed or applied to—

    • “(i) community housing entities that meet the requirements to derive exempt income under this section:

    • “(ii) at the time of first becoming beneficiaries or clients, persons, or classes of persons, described in regulations made under section 225D of the Tax Administration Act 1994:

    • “(ii) beneficiaries or clients of the entity:

    • “(iii) tax charities:

    • “(iv) persons to whom distributions would be in accordance with charitable purposes; and

  • “(c) no person with some control over the activities is able to direct or divert, to their own benefit or advantage, an amount derived from the activities.

  “Definition: exception

  “(2B) Despite subsection (2), community housing entity does not include a trust and its trustees, or a company (as applicable, the entity) if––

  • “(a) less than 85% of the beneficiaries or clients of the entity are, at the time of first becoming beneficiaries or clients, persons, or classes of persons, described in regulations made under section 225D of the Tax Administration Act 1994 (the regulations):

  • “(b) the provision of housing to beneficiaries or clients who, at the time of first becoming beneficiaries or clients, are persons, or classes of persons, described in the regulations (the regulated people) is substantially different from the provision of housing to beneficiaries and clients who, at the time of first becoming beneficiaries or clients, are not regulated people.

  “Control over activities

  “(3) For the purposes of subsection (2)(c), for an income year, a person is treated as having some control over the activities, and as being able to direct or divert amounts from the activities to their own benefit or advantage if, in the tax year, they are described in section CW 42(5)(a) and (b) and (6) (Charities: business income).

  “No control

  “(4) For the purposes of subsection (2)(c), a person described in section CW 42(7)(a) and (b) is not treated as having some control merely because of the factors in section CW 42(7)(a) and (b).

  “Benefit or advantage

  “(5) For the purposes of subsection (2)(c), a benefit or advantage to a person includes a benefit or advantage included under section CW 42(8).

  “Defined in this Act: amount, charitable purpose, community housing entity, exempt income, income, income year, tax charity”.

• “(aa) the trust and its trustee or the company, as the case may be, are a registered community housing provider under the Housing Restructuring and Tenancy Matters Act 1992; and”.

• “(a) starts on 1 January 2015; and

• “(b) ends on 31 December 2019.”

“exploration and development activities––

• “(a) means the following activities undertaken for the purposes of identifying and developing exploitable petroleum deposits or occurrences in an offshore permit area:

  • “(i) operating a ship to provide seismic or electromagnetic survey readings:

  • “(ii) drilling an exploratory well or other well; but

• “(b) does not include using a drilling rig of modular construction that is installed on an existing offshore platform”.

“CZ 29 Accommodation expenditure: Canterbury earthquake relief

• “When this section applies

  “(1) This section applies for the purposes of section CW 16B (Accommodation expenditure: out-of-town secondments and projects) when—

  • “(a) the employment duties of an employee require them to work on a project of limited duration for rebuilding or recovery, including the repair and reconstruction of land, infrastructure, and other property in greater Christchurch as a result of the Canterbury earthquakes; and

  • “(b) the distant workplace is a workplace in greater Christchurch.

  “Exempt income

  “(2) The value provided or expenditure incurred by the employer of the employee for or in relation to the accommodation is exempt income of the employee.

  “(3) Despite paragraph (c)(iii) of the definition of project of limited duration and section CW 16C(2)(d) (Time periods for certain accommodation expenditure), for the purposes of this section, the 3-year limit is ignored and is replaced by the following:

  • “(a) 5 years, if the employee starts work at the distant workplace in the period commencing on 4 September 2010 and ending on 31 March 2015:

  • “(b) 4 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2015 and ending on 31 March 2016:

  • “(c) 3 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2016 and ending on 31 March 2017:

  • “(d) 3 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2017 and ending on 31 March 2018:

  • “(e) 3 years, if the employee starts work at the distant workplace in the period commencing on 1 April 2018 and ending on 31 March 2019.

  “Project periods: basis of time limits

  “(4) For the purposes of this section and section CW 16C,—

  • “(a) in subsection (3)(a), the time limit is determined by whether the actual period of continuous work of the employee at the distant workplace is for a period of no more than 5 years:

  • “(b) in subsection (3)(b) to (e), the time limits apply based on the employer's expectation of the employee's involvement in the project.

  “Definitions for this section

  “(5) In this section, Canterbury earthquakes, greater Christchurch, rebuilding, and recovery have the meanings given in section 4 of the Canterbury Earthquake Recovery Act 2011.

  “Relationship with section CZ 30

  “(6) Section CZ 30 does not apply to modify the application of this section.

  “Related provisions

  “(7) For the purposes of this section, the commencement and application provisions in sections 2 and 20 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 are treated as—

  • “(a) commencing on 4 September 2010:

  • “(b) applying for the person's income year that includes 4 September 2010 and for all later income years.

  “Defined in this Act: accommodation, amount, Canterbury earthquakes, distant workplace, employee, employer, exempt income, greater Christchurch, land, pay, period of continuous work, project of limited duration, rebuilding, recovery”.

“CZ 30 Transitional provision: application of certain accommodation provisions

• “When this section applies

  “(1) This section applies for the purposes of sections CE 1B, CW 16B to CW 16F, and CW 17CB (which relate to expenditure on accommodation and work-related meals) when an employer provides accommodation or incurs expenditure that meets the requirements of those provisions in the period that starts on 1 January 2011 or 1 April 2011, as applicable, and ends on 31 March 2015.

  “Transitional period: accommodation

  “(2) Despite the commencement and application provisions in the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 relating to the accommodation provisions, the employer may choose to apply those provisions to the expenditure incurred in the period, but only if they have not, before 6 December 2012, taken a tax position that the accommodation expenditure is taxable.

  “Transitional period: work-related meals

  “(3) Despite the commencement and application provisions in the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 relating to the work-related meal provisions, the employer may choose to apply those provisions to expenditure incurred in the period on work-related meals, but only if they have not already taken a tax position that the expenditure is taxable.

  “Basis of time limits for and after transitional period

  “(4) For the purposes of this section and section CW 16C, and for the period referred to in subsection (1), a time limit may be either—

  • “(a) the actual period of continuous work of the employee at the distant workplace; or

  • “(b) a time limit based on the employer's expectation of the employee's involvement in an out-of-town secondment or project of limited duration.

  “Related provisions

  “(5) For the purposes of this section, the commencement and application provisions in sections 2, 12, 20, and 22 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 are treated as—

  • “(a) commencing on 1 January 2011 for the accommodation provisions, and 1 April 2011 for the work-related meal provisions:

  • “(b) applying for the person's income year that includes 1 January 2011 or 1 April 2011, as applicable, and for all later income years.

  “Defined in this Act: accommodation, distant workplace, employee, employer, out-of-town secondment, period of continuous work, project of limited duration, tax”.

“CZ 31 Accommodation expenditure: New Zealand Defence Force

• “When this section applies

  “(1) This section applies for the period that starts on 6 December 2012 and ends on 31 March 2015 for the purposes of section CE 1(1B) (Amounts derived in connection with employment) when—

  • “(a) accommodation is provided to a person who is a member of the Defence Force by the Navy, Army, or Air Force, as those terms are defined in the Defence Act 1990; and

  • “(b) the accommodation is provided in relation to the employment or service of the person.

  “Market value

  “(2) The value is an amount equal to the rent paid by the person for the accommodation.

  “Defined in this Act: accommodation, amount, employment”.

“CZ 32 Treatment of certain petroleum storage facilities

• “When this section applies

  “(1) This section applies for an income year when a petroleum miner disposes of an underground gas storage facility in relation to which they have been allowed a deduction under section DT 5 (Petroleum development expenditure) for expenditure incurred before the date of enactment of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014.

  “Income

  “(2) Despite section CT 1(2) (Disposal of exploratory material or petroleum mining asset), the miner has an amount of income from the disposal of the storage facility for the income year calculated using the formula—

  past expenditure		×		amount on disposal.
  total expenditure

  “Definition of items in formula

  “(3) In the formula,—

  • “(a) past expenditure is the total amount of expenditure that the miner incurs in relation to the storage facility for which they have been allowed a deduction under section DT 5:

  • “(b) total expenditure is the sum of—

    • “(i) the amount of expenditure that the miner incurs in relation to the storage facility after the date of enactment of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2013 for which a deduction is allowed; and

    • “(ii) the amount of past expenditure referred to in paragraph (a):

  • “(c) amount on disposal is the total amount that the miner derives on the disposal of the storage facility.

  “Transitional provision for certain facilities

  “(4) Despite section CT 7(2) (Meaning of petroleum mining asset), an underground gas storage facility covered by petroleum mining permit number 52278 is a petroleum mining asset to the extent to which the expenditure incurred by the permit holder relates to activities specified in the work programme set out in schedule 3 of the permit. Permit number 52278 includes a replacement or supplementary permit to the extent to which it covers activities specified in the work programme in schedule 3 of permit 52278.

  “Defined in this Act: amount, deduction, income year, petroleum miner, petroleum mining asset, petroleum mining permit”.

• “(bb) an amount withheld under section 1471 or 1472 of the Internal Revenue Code of 1986 (USA), as amended from time to time:”.

“When this section applies

• “(1) This section applies when a person who incurs expenditure for the purpose of applying for the grant of a resource consent under the Resource Management Act 1991—

  • “(a) does not obtain the grant because the application is not lodged or is withdrawn, or because the grant is refused:

  • “(b) obtains the grant but does not use the resource consent before it lapses or is surrendered.

“Deduction

• “(1B) The person is allowed a deduction for the expenditure—

  • “(a) that the person incurs in relation to the application or intended application; and

  • “(b) that would have been part of the cost of depreciable property, or otherwise a deduction, if the application or intended application had been granted or if the resource consent had been used; and

  • “(c) for which the person is not allowed a deduction under another provision.”

• “(2) The deduction is allocated to the income year in which—

  • “(a) the person decides not to lodge the application, withdraws the application, or is refused the grant; or

  • “(b) the resource consent lapses or is surrendered.”

• “(1) A person who incurs expenditure for the purpose of applying for the grant of a patent and does not obtain the grant because the application is not lodged or is withdrawn, or because the grant is refused, is allowed a deduction for the expenditure—

  • “(a) that the person incurs in relation to the application or intended application; and

  • “(b) that would have been part of the cost of fixed life intangible property, or otherwise a deduction, if the application or intended application had been granted; and

  • “(c) for which the person is not allowed a deduction under another provision.”

• “(2) The deduction is allocated to the income year in which the person decides not to lodge the application, withdraws the application, or is refused the grant.”

“DB 40BA Expenses in application for plant variety rights

• “Deduction

  “(1) A person who incurs expenditure for the purpose of applying for the grant of plant variety rights and does not obtain the grant because the application is not lodged or is withdrawn, or because the grant is refused, is allowed a deduction for the expenditure—

  • “(a) that the person incurs in relation to the application or intended application; and

  • “(b) that would have been part of the cost of fixed life intangible property, or otherwise a deduction, if the application or intended application had been granted; and

  • “(c) for which the person is not allowed a deduction under another provision.

  “Timing of deduction

  “(2) The deduction is allocated to the income year in which the person decides not to lodge the application, withdraws the application, or is refused the grant of plant variety rights.

  “Link with subpart DA

  “(3) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.

  “Defined in this Act: capital limitation, deduction, fixed life intangible property, general limitation, general permission, income year, plant variety rights”.

• “(3) This section supplements the general permission and overrides the exempt income limitation. The other general limitations still apply.”

“Miscellaneous company administration costs

“DB 63 Expenses in paying dividends

• “Deduction

  “(1) A company is allowed a deduction for expenditure incurred in—

  • “(a) authorising, allocating, or processing, the payment of a dividend:

  • “(b) resolving a dispute concerning a matter referred to in paragraph (a).

  “Link with subpart DA

  “(2) This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

  “Defined in this Act: capital limitation, company, deduction, dividend, general limitation, general permission

“DB 63B Periodic company registration fees

• “Deduction

  “(1) A listed company is allowed a deduction for expenditure incurred as periodic fees of a recognised exchange for maintaining the registration of the company on the exchange.

  “Link with subpart DA

  “(2) This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

  “Defined in this Act: capital limitation, company, deduction, general limitation, general permission, listed company, recognised exchange

“DB 63C Meetings of shareholders

• “Deduction

  “(1) A company is allowed a deduction for expenditure incurred in holding an annual meeting of the shareholders of the company to consider the affairs of the company.

  “No deduction

  “(2) A company is denied a deduction for expenditure incurred in holding a special or extraordinary meeting of the shareholders of the company.

  “Link with subpart DA

  “(3) Subsection (1) supplements the general permission and overrides the capital limitation. Subsection (2) overrides the general permission. The other general limitations still apply.

  “Defined in this Act: capital limitation, company, deduction, general limitation, general permission, shareholder”.

• “(a) expenditure is the total expenditure or loss that is incurred by the person for an income year in relation to the asset, other than expenditure that is related solely to—

  • “(i) the income-earning use of the asset as described in section DG 7:

  • “(ii) the private use of the asset:

  • “(iii) the capital use of the asset:”.