Section DS 3 — Income Tax Act 2007: Clawback of deductions for film reimbursement schemes

DS 3 Clawback of deductions for film reimbursement schemes Reduction of deductions (1) A person who disposes of property under a film reimbursement scheme must use the formula in subsection (3) to reduce— (a) the total deductions that they have been allowed for the disposal under the scheme under section DS 1 or DS 2 ; or (b) the total deductions that they would be allowed for the disposal under the scheme under section DS 1 or DS 2 in the absence of this section. Order of reduction (2) Deductions must be reduced in the same order as they have been allowed or would be allowed. Formula (3) The total deductions must be reduced to an amount equal to the greater of zero and the amount calculated using the formula— total deductions − total consideration. Definition of items in formula (4) In the formula,— (a) total deductions is the total amount of deductions that— (i) the person has been allowed under section DS 1 or DS 2 ; or (ii) the person would be allowed under section DS 1 or DS 2 in the absence of this section: (b) total consideration is the total amount of consideration for the disposal of the property that the person derives and that is not film income. Application of Tax Administration Act 1994 (5) Section 44A of the Tax Administration Act 1994 applies to a person to whom this section applies. Amendment of assessment (6) Despite the time bar, the Commissioner may amend an assessment at any time in order to give effect to this section. Exclusion (7) This section does not apply to a deduction for expenditure excluded under section DZ 11 (Film reimbursement scheme on or before 30 June 2001). Defined in this Act: amount , assessment , Commissioner , deduction , film income , film reimbursement scheme , time bar , Compare: 2004 No 35 s DS 3