Section DZ 20 — Income Tax Act 2007: Expenditure incurred while income-earning activity interrupted by Canterbury earthquake

DZ 20 Expenditure incurred while income-earning activity interrupted by Canterbury earthquake When this section applies (1) This section applies for a person and an income year (the current year ) before the 2016–17 income year when— (a) the person has an income-earning activity in greater Christchurch (as defined in section 4 of the Canterbury Earthquake Recovery Act 2011) immediately before a Canterbury earthquake (as defined in that section); and (b) the activity is interrupted for a period (the period of interruption ) as a result of the Canterbury earthquake; and (c) in the current year, during the period of interruption, the person incurs expenditure or loss (the interruption expenditure ) in meeting an obligation relating to the income-earning activity; and (d) the interruption expenditure does not meet the requirements of the general permission for the person and the income-earning activity but would do so but for the interruption; and (e) the person resumes the income-earning activity in an income year (the resumption year ) before the 2016–17 income year. Deduction for interruption expenditure (2) The person is allowed a deduction for the interruption expenditure. Timing of deduction (3) The deduction is allocated to the resumption year. Link with subpart DA (4) This section supplements the general permission; the general limitations still apply. Defined in this Act: deduction , , general limitation , , general permission , , income , , income year , , loss Section DZ 20: inserted (with effect on 4 September 2010), on 2 November 2012 (applying for the 2010–11 to the 2015–16 income years), by section 29(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).