Section EC 11 — Income Tax Act 2007: Restrictions on making of elections

EC 11 Restrictions on making of elections Forms of notice (1) This section specifies the 2 forms of notice that a person must give to the Commissioner and when each must be used. When a person notifies the Commissioner of an election under this section, the election is irrevocable in the first income year in which it applies. When notice in same year required (2) For the elections described in this subsection, a person must give notice by the date of filing their return of income for the income year in which the election is first to apply. The elections are— (a) an election to value livestock of a particular type under the herd scheme, as described in section EC 14 ; and (b) an election to adopt a herd value ratio or the Chatham Islands adjustment to the herd value ratio for livestock of any type when the income year is the first income year in which the particular livestock is valued under the herd scheme, as described in sections EC 17 to EC 19 . When 2 years’ notice required (3) For the elections described in this subsection, a person must give notice by the date of filing their return of income for an income year that is at least 2 income years before the income year in which the election is first to apply. The elections are— (a) an election to stop valuing specified livestock of a particular type under the herd scheme, except when the person continues to value some livestock of that type under the herd scheme or when another valuation method is available, as described in section EC 14(2) ; and (b) an election, after the herd scheme has been adopted, to adopt a herd value ratio or recalculated herd value ratio or the Chatham Islands adjustment for any livestock type, as described in sections EC 17 to EC 19 ; and (c) an election to value specified livestock under the national standard cost scheme when the person has, in the income year before the application of the new election, valued the same livestock under the cost price method; and (d) an election to value specified livestock under the cost price method when the person has, in the year before the application of the new election, valued the same livestock under the national standard cost scheme. Information for notices of election (4) A notice of election must state— (a) the income year in which the election is first to apply; and (b) the type, class, or other description of the applicable livestock; and (c) the existing and proposed methods of valuing the applicable livestock; and (d) for an election to use a herd value ratio or recalculated herd value ratio under section EC 17 ,— (i) the value assessed under section EC 17(4) of an average animal of each applicable class of livestock; and (ii) the date on which the valuation of each animal was made; and (iii) the name and address of the valuer. Defined in this Act: class , Commissioner , cost price , herd scheme , herd value ratio , income year , national standard cost scheme , notice , notify , return of income , specified livestock , type , Compare: 2004 No 35 s EC 11