Section EC 13 — Income Tax Act 2007: Changes in partnership interests

EC 13 Changes in partnership interests When this section applies (1) This section applies when— (a) a partnership owns specified livestock (the old partnership ); and (b) a new partnership is formed (the new partnership ); and (c) at the end of the income year in which the new partnership is formed, more than 50% of the property of the new partnership is owned by persons who, during that income year or in the previous income year,— (i) owned all the property of the old partnership; and (ii) derived income in either income year from specified livestock of the same type as that owned by the new partnership. Valuation (2) The value of specified livestock owned by the new partnership must be taken into account in the way the old partnership determines the value of livestock of the particular type at the end of the income year in which the new partnership is formed. If the old partnership has no specified livestock of the type on hand at the end of the income year, the value is taken into account as the old partnership would have determined it, had it owned specified livestock of that type. Defined in this Act: income , income year , specified livestock , type , Compare: 2004 No 35 s EC 13