Section EE 17 — Income Tax Act 2007: Amount resulting from petroleum-related depreciable property calculation

EE 17 Amount resulting from petroleum-related depreciable property calculation Amount (1) For the purposes of the comparison of amounts required by section EE 14(2) , the amount dealt with in this section is calculated using the formula— annual rate × value or cost × days 365. Definition of items in formula (2) The items in the formula are defined in subsections (3) to (5). Annual rate (3) Annual rate is the annual rate that, in the income year, applies to the item of depreciable property under the depreciation method that the person uses for the item. It is expressed as a decimal. Value or cost (4) Value or cost is,— (a) when the person uses the diminishing value method, the item’s adjusted tax value at the end of the income year before the deduction of an amount of depreciation loss for the item for the income year: (b) when the person uses the straight-line method, the item’s cost to the person; a variation to cost is in section EE 18 . Days (5) Days is the number of whole or part days in the income year on which— (a) the person owns the item; and (b) the person uses the item or has it available for use for any purpose. Defined in this Act: adjusted tax value , amount , annual rate , deduction , depreciable property , depreciation loss , depreciation method , diminishing value method , income year , own , straight-line method , Compare: 2004 No 35 s EE 17