Section EC 10 — Income Tax Act 2007: Restrictions on use of cost price method

EC 10 Restrictions on use of cost price method Cost price method: first restriction on use of method (1) The cost price method is not available to a person to value specified livestock in an income year if the person values other specified livestock in the income year under the national standard cost scheme. Cost price method: second restriction on use of method (2) The cost price method is not available to a person to value specified livestock if, in the income year before the income year in which their election under section EC 7(2) is to apply, they have valued specified livestock under the national standard cost scheme and have not given 2 income years’ notice in the way described in section EC 11 to the Commissioner of their election to value specified livestock under the cost price method. Cost price method: third restriction on use of method (3) The cost price method is not available to a person to value specified livestock in an income year if they have bailed or leased their specified livestock to another person, unless the livestock is bailed or leased under a profit-sharing arrangement. Cost price method: fourth restriction on use of method (4) The cost price method is not available to a person to value specified livestock in an income year if they have bailed or leased their specified livestock to another person— (a) under a long-term bailment; or (b) under a short-term bailment made between associated persons in which the consideration paid to the bailee is not a fair market value. Cost price method: fifth restriction on use of method (5) The cost price method is not available to a person to value a type of specified livestock in an income year if they have made specified livestock available to another person under a profit-sharing arrangement and, in the income year, the other person, or another person has also made livestock of the type available under the profit-sharing arrangement, values any livestock of the type under the national standard cost scheme. Defined in this Act: associated person , Commissioner , cost price , income year , lease , long-term bailment , national standard cost scheme , profit-sharing arrangement , short-term bailment , specified livestock , type , Compare: 2004 No 35 s EC 10