Section CC 2 — Income Tax Act 2007: Non-compliance with covenant for repair

CC 2 Non-compliance with covenant for repair When this section applies (1) This section applies when a person who is a lessor of land derives an amount for non-compliance by the lessee with an obligation under a lease of the land— (a) to maintain the land; or (b) to make repairs to improvements on the land. Income (2) The amount is income of the lessor. Timing of income (3) The income is allocated to the income year in which the lessor receives the amount. Relationship with sections EI 5 and EI 6 (4) Subsection (3) is overridden by sections EI 5 (Amount paid to lessor for non-compliance with covenant for repair) and EI 6 (Amount paid for non-compliance: when lessor ceases to own land). Defined in this Act: amount , income , income year , lease , repairs Compare: 2004 No 35 s CC 2