Section CB 28 — Income Tax Act 2007: Environmental restoration accounts

CB 28 Environmental restoration accounts Income from refund (1) A person who receives a refund for a tax year under section EK 12 (Refund if request or excess balance) derives for the person’s corresponding income year an amount of income calculated using the formula— refund tax rate. Income from transfer from environmental restoration account (2) If there is a transfer from a person’s environmental restoration account under section EK 15 , EK 16 , or EK 19 (which relate to environmental restoration accounts), the person derives for the corresponding income year an amount of income calculated using the formula— transfer tax rate. Definitions of items in formulas (3) The items in the formulas are defined in subsections (4) to (6). Refund (4) Refund is the amount of the refund. Tax rate (5) Tax rate is the highest rate of income tax on taxable income that— (a) is set out in schedule 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits); and (b) would apply to the person for the tax year if the person had sufficient taxable income. Transfer (6) Transfer is the amount in the environmental restoration account that is transferred. Income arising from renewal of resource consent (7) A person who incurs expenditure of a type listed in schedule 19 , part A, clauses 2 to 5 (Expenditure in avoiding, remedying, or mitigating detrimental effects of discharge of contaminant) and not in schedule 19, part C derives income under subsection (8) if— (a) the deduction under section DB 46 (Avoiding, remedying, or mitigating effects of discharge of contaminant) for the expenditure is determined by the period for which a resource consent is granted; and (b) the period of the grant of the resource consent is extended by more than 50% in a later income year or a new resource consent is granted for a period that is more than 50% of the total period of the resource consent. Amount of income (8) The person derives for the income year in which the period of the resource consent is extended, or the new resource consent is granted, an amount of income equal to the greater of zero and the difference between— (a) the total deduction under section DB 46 for the person for the period from the grant of the resource consent to the beginning of the income year: (b) the total deduction for the expenditure that the person would have had under section DB 46 for the period referred to in paragraph (a), if the period of the resource consent at the time of the grant had been 35 years. Defined in this Act: corresponding income year , environmental restoration account , income , income tax , resource consent , taxable income , tax year Compare: 2004 No 35 s CB 24B Section CB 28(5)(a): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).