Section DS 1 — Income Tax Act 2007: Acquiring film rights

DS 1 Acquiring film rights Deduction (1) A person is allowed a deduction for expenditure that they incur in acquiring a film right, if the film is completed, whether it is completed before, at the time, or after the film right is acquired. Exclusion (2) This section does not apply to expenditure that a person incurs in acquiring a film right if— (a) the person operates a television station, a television network, or a cable television system, and the film right is acquired mainly to enable the film to be broadcast in New Zealand; or (b) the film is intended to be shown as an advertisement; or (c) the expenditure is film production expenditure; or (d) section DS 2B applies to the expenditure. Timing of deduction (3) The deduction is allocated under section EJ 4 (Expenditure incurred in acquiring film rights in feature films) or EJ 5 (Expenditure incurred in acquiring film rights in films other than feature films). No other deduction (4) No other deduction for expenditure incurred in acquiring a film right is allowed under a provision of this Act other than section DS 2B . Avoidance arrangements (5) The amount of the deduction may be reduced under— (a) section GB 17 (Excessive amounts for film rights or production expenditure): (b) section GB 18 (Arrangements to acquire film rights or incur production expenditure). Link with subpart DA (6) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: arrangement , capital limitation , completed , deduction , film , film production expenditure , film right , general limitation , general permission , New Zealand , Compare: 2004 No 35 s DS 1 Section DS 1(2): substituted (with effect on 1 April 2008), on 7 December 2009, by section 16(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63). Section DS 1(4): amended, on 1 April 2008, by section 345(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).