Section DZ 15 — Income Tax Act 2007: Patent applications before 1 April 2005

DZ 15 Patent applications before 1 April 2005 When this section applies (1) This section applies when— (a) a patent is granted to a person in their 2005–06 income year or a later income year; and (b) the patent is granted in relation to a patent application owned by the person; and (c) the patent application, with a complete specification, was first lodged with the Intellectual Property Office of New Zealand or a similar office in another jurisdiction before 1 April 2005; and (d) a deduction for expenditure on the patent application is denied under another provision. Calculation of deduction (2) The person is allowed, in the income year in which the patent is granted, a deduction for expenditure on the patent application in any income year, calculated using the formula— months of ownership × cost. 240 Definition of items in formula (3) In the formula,— (a) months of ownership is the number of whole calendar months for which the person owns the patent application: (b) cost is the cost to the person of the patent application. Link with subpart DA (4) 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 , general limitation , general permission , income year , Compare: 2004 No 35 s DZ 14