Section EE 34 — Income Tax Act 2007: Annual rate for patent granted in 2005–06 or later income year

EE 34 Annual rate for patent granted in 2005–06 or later income year When this section applies (1) This section applies to an item that is a patent when the patent is acquired by a person in their 2005–06 income year or a later income year. Rate (2) The rate is the rate calculated using the formula— 1 legal life. Definition of item in formula (3) In the formula, legal life is set out in whichever of subsections (4) to (7) applies to the patent. Fixed life intangible property (4) If the patent is an item of fixed life intangible property to which section EE 19 applies, legal life is the patent’s remaining legal life from the start of the income year in which the person incurs the additional costs referred to in that section. No depreciation loss for patent application (5) If section EE 19 does not apply to the patent and the person has been denied a deduction for an amount of depreciation loss for the patent application, legal life is the patent’s remaining legal life from the time at which the person acquires the patent. Depreciation loss for patent application (6) If section EE 19 does not apply to the patent, and has not applied to the patent application while the person has owned it, and the person has been allowed a deduction for an amount of depreciation loss for the patent application, legal life is the remaining legal life of the patent application from the start of the income year in which the person acquires the patent application. When section EE 19 applied to patent application (7) If section EE 19 does not apply to the patent, but has applied to the patent application while the person has owned it, and the person has been allowed a deduction for an amount of depreciation loss for the patent application, legal life is the remaining legal life of the patent application from the start of the income year in which the person acquires the patent. How rate expressed (8) The rate calculated using the formula is expressed as a decimal and rounded to 2 decimal places, with numbers at the midpoint or greater being rounded up and other numbers being rounded down. Defined in this Act: acquire , amount , deduction , depreciation loss , income year , legal life , Compare: 2004 No 35 s EE 27B